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Assume you have been hired by the head of a tobacco industry group to do a cost benefit analysis of whether the tobacco firms should disclose that nicotine is addictive. Assume this is before the federal government required such disclosure on all packages of cigarettes. Explain how you would go about determining what are the potential harms and potential benefits of disclosing this information voluntarily. Is there any information you feel cannot be included in the evaluation? What is it? Why can’t you include it? If you could include it, would it impact your recommendation to the head of the industry group? Analyze the situation from a rights perspective, justice, and virtue theory. How might these considerations affect your recommendation to the head of the industry group?
Using the Lagrangean Multiplier method, determine how should the hardwood be allocated between the two lines of product so that total profit can be maximized. Also calculate the optimal amounts of Y and Z and total profit from each product line.
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
Illustrate what do you think would happen to sale and price of DVDs after this.
Suppose we collect the following information from a large number of junior and senior level college students: Give specific interpretations for the coefficients in the model, and discuss whether or not they make sense. Based on this equation, what co..
On the same day, the San Francisco Chronicle had an article with the headline "Sharp Drop in Bay Area Home Sales"
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or i..
Discuss how the distribution of income among various groups of income earners have changed in this country during the past 50 years. In your opinion, do we need to initiate any policy to address the distribution of income?
A price-taking ?rm selling in a market with a price greater than the ?rm's average total cost should:
Carrboro has three equal-sized groups of people: (1) type A people consistently prefer more police protection to less; (2) type B people prefer high levels of police protection to low levels and they prefer low levels to medium levels; Which types of..
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
There is currently a surplus of allowances at the price of zero. What must be true of the relative positions of the market demand and supply curves? Explain. If the EPA were to allow firms to use allowances to emit sulfur dioxide as they did in the p..
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