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the supply of paper is described by the following equation Qs= 5000 P..... where Qs is tons supplied per year and P is price per ton. demand is Qd= 400,000-1000 P... there Qd is tons demanded per year. because of the pollution associated with paper production, the marginal cost of $20.00 are associated with each ton of paper. Assuming paper is sold in a competitive market, what is the market price? how many tons of paper will be produced per year at that price? what is the efficient annual output of paper? how can a corrective tax achieve efficiency?
Explain in detail how a decrease in consumer demand for a product will result in less of the product being produced and in fewer resources being allocated to its production.
(a) In a typical labor exchange, what does the UPF for that exchange represent (b) Why is the UPF downward sloping (c) What does the slope represent. Finally, to what points in the Edgeworth box for the labor exchange does the UPF correspond
Suppose that deterioration in the education level of the U.S. population reduces the marginal product of labor.
A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing..
As we all know, at current it is illegal for parents who want to adopt a child to pay the birth mother for, or to offer to pay for, the babies they adopt.
Which fiscal policy choices are preferred, by an individual who prefers a small public sector (limited role for government), for solving inflationary and recessionary gaps?
If Kevin agrees to an $18,500 alimony payment, what is the after-tax cash flow for Kevin and Elizabeth? By how much does their cash flow improve over the proposed $15,000 payment?
data collected in the imaginary economy of karabekiar reveals that when price of bork increased by 20%, the quantity of bork sold decreased by 15%.
If you think that your company's performance is not sensitive to general economic business cycles, then describe why it is stable as the economy moves up and down.
Suppose after taxation that the consumer is given a payroll tax rebate that happens to be exactly equal to the amount of gasoline tax he pays. Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of reba..
How income may change savings behavior
A monopolistic producer supplying raw materials to two industries one with a lower price elasticity of demand and the other with a high price elasticity of demand, practices to prevent its low price elastic consumers (who have more elastic demands..
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