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Imagine a waste processing plant that is causing air pollution (measured in tons per year), and has marginal abatement costs given by MAC1 = 100 – 0.005E1. The marginal damages from the pollution is given by MD = 0.003E. The government establishes liability laws and a judge rules that the town must be compensated for total damages. (a) What level of emissions will the waste plant choose? (b) Accurately graph the MAC/MD. (c) The polluter has the opportunity to adopt new abatement technology that would lower its costs to MAC2 = 60 – 0.003E2. Calculate their incentive to adopt the new technology? Show their incentive on the graph. (d) Imagine that the new technology costs $800,000 (t=0). Also imagine that the new technology provides benefits (calculated in part (c)) for 5 years starting immediately (t = 0, 1, ..., 4). Will the company adopt the new technology? Discount rate is 4%.
Val-lok industries manufacture miniature fittings and valves. Over a period of 8 years, the costs associated with one product line were as follows: initial investment cost of $22,000 and annual costs of $20,000. Annual revenue was $24,000. What rate ..
Explain why you would not offer a loan to the next individual who applies for a car loan at your local bank at a higher interest rate than the bank pays on certificates of deposit.
Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.
Explain the origin of the Human Development Index. Explain the method of calculating Human Development Index.
Bob makes hand-sewn sweaters, 250 of them per year, sold for $200 each. His annual costs are: fabric for $300, thread for $50, a sewing machine that is leased annually for $40, and needles that are leased annually for $5. T
Tamiflu, produced by Roche, has so far been the most effective medicine to tackle bird flu. Roche was granted a patent on the drug which enables the pharmaceutical firm to charge higher prices and earn higher profits. Monopoly is inefficient as it ch..
Your current salary is $70,000 per year and you are planning to retire in 25 years from now. You anticipate that your annual salary will increase by $3,500 each year. You plan to deposit 5% of your yearly salary into a retirement fund that earns 6.75..
Using your understanding of the financial system, the demand for money, banking and the money provide, interest and spending, the stock market, interest and investment.
A refrigerator sold for $500. The store announced the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments: What will be the size of the monthly payments?
Find the 7 uniform annual deposits that can provide a single withdrawal of $43,001.59, 6 years after the last deposit is made at an interest rate of 10.7% per year.
q1. the article discusses the decrease in firm costs. should the decrease in costs affect the quantity supplied? why or
You have studied the legislative branch of government and the wide range of powers held by the House of Representatives and the Senate. List five powers or duties of one or both houses of Congress and discuss each of the five, in a few descriptive se..
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