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Discuss the various ways governments can handle externalities, such as noise from a local airport or a barking dog or building of commercial office space or an industrial building in a residential area? How does the assignment of property rights affect the outcome? Under what circumstances would a socially optimal solution arise without any government intervention? Under what circumstances would government intervention likely move the outcome closer to a socially optimal solution?
The technology is now expanding so that road use can be priced through computer. A computer in surface of the road picks up a signal from your car and automatically charges you for use of road.
Suppose an economy of two firms and two consumers. The two firms pollute. Firm 1 has a marginal savings function of MS1(e) = 5-e where e is the quantity of emissions from the firm.
Do you think the overall level of R&D would increase or reduce over the next 20 to 30 years if lengths of new patents were extended from 20 years to, say "forever"?
Analyze the effects of a change in money supply in an open economy under a flexible exchange value system. How are your conclusion affected by the adoption of a fixed exchange rate?
When international hostilities increase, the United States government will sometime use trade sanctions instead of military action.
Formulate a linear programming model for this problem and prepare the initial tableau if the problem is to be solved using simplex
Explain which bridges you would choose to attempt to use. (Assume you can put one foot on a bridge to see if it collapses before you attempt to cross.)
Distinguish between explicit & implicit costs, giving example of each and what are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost?
Explain the difference between the demand curve facing the monopoly firm and demand curve facing the perfectly competitive firm.
Compute the pre-merger HHI measures for each market. How would a merger affect the market's HHI?
For each of following cost-output relationships, explain the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions
Describe the difference between movement along the demand curve and a shift in demand. Provide an example to help the class understand the difference between the two.
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