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Q. Suppose that the inverse demand curve for paper is P = 200 - Q. The private marginal cost is MCp = 80 + Q and the marginal harm from gunk is MCg = Q.
a. What is the unregulated competitive equilibrium?
b. What is the social optimum? What specific tax (per unit of output or gunk) results in the social optimum?
c. What is the unregulated monopoly equilibrium?
d. How would you optimally regulate monopoly? Elucidate what is the resulting equilibrium?
If your employees are self-interested, how much output would you expect each individual worker to produce absent monitoring.
When you purchase and eat a hamburger, no one else can eat the same hamburger. When you download a file on the Internet, the file is still available.
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
You arranged the subsequent information to use in evaluating the financial feasibility of starting your own agency.
Illustrate how much will they have accumulated principal plus interest when they reach 65 years old. What is the moral of this situation.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
A car manufacturer claims that its vehicles average at least 25 miles per gallon.
Calculate the purchasing power parity exchange rate between the Swiss franc and the dollar. Based on your calculation, is the SF overvalued or undervalued.
What is the new equilibrium price and output in the short run for both the industry and each firm.
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
How large is the bias in the CPI due to not immediately incorporating new goods.
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