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For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2.
Under these situations find:
Level of output x, Producer surplus and net damages
A regulator imposes a unit Pigovian tax on pollution at the level t=2 per unit.
Same as (3), but the government returns to tax revenues collected to the consumers
Calculate point price elasticities of demand for each customer product at activity levels identified in part A.
What probability of discovery would make the driller indifferent between drilling and not drilling and what is the expected value of perfect information on reserves?
Is the student necessarily better or worse off than before from such a transfer implied by consultant A.
Find the equilibrium price (P), quality (Q), and revenue in a market characterized by the following equations:
Suppose the demand curve for UK basketball tickets is perfectly elastic but the supply curve for UK basketball tickets is not perfectly elastic or perfectly inelastic. If the equilibrium price of UK basketball tickets is initially $2, a downsizing of..
The price of a 10-year bond can decline by approximately 9% if interest rates rise by 1% point. To illustrate this, suppose you own a 10-year U.S. Treasury bond that has a bond rate of 2% per year. How much money will you lose if the value of the bon..
Dialectic materialism refers to which of the following concepts?
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP. Discuss why ..
Discuss. “The internationalization of banking has weakened national safeguards against banking collapse, but at the same time it has made the need for effective safeguards more urgent.”
Using demand and supply curves, illustrate and explain how the following would affect the equilibrium price and quantity of wood tables.
Consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. a) Compute the equilibrium wage and capital return. b) Compute total p..
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