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In 2009, the voters of Oakland, California, passed a measure to tax medical cannabis (marijuana), effectively legalizing it. In 2010, the City Council adopted regulatiuons permitting industrial-scale marijuana farms with no size limits but requiring each to pay a $211,000 per year fee. One proposal calls for a $100,000 square feet farm, the size of two football fields. Prior to this legalization, only individuals could grow marijuana. These small farmers complained bitterly, arguing that the large firms would drive them out out of the industry they helped to build due to economies of scale. Draw a figure to illustrate the situation. Under what conditions (such as relative costs, position of the demand curve, number of low-cost firms) will the smaller, higher-cost growers be driven out of business?
Illustrate what will be level of employment under monopsonistic conditions.
Illustrate what is the mechanism by which an aggregate demand recession is transmitted from one country to another.
It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.
When Michael got a pay raise and began to earn $6,000 per month, his demand shifted outward to Q = 20 – 0.25P. Given this information, find Michael’s income elasticity (EI) for filets.
Rental cars should be treated as perfectly divisible. Be sure to provide numerical coordinates for any particularly key point.
If she neither borrows nor lends, which project has the higher present value at the interest rate 50%. Which has the higher present value at an interest rate of 5%.
Suppose a duopoly and let demand be specified by P=A-BQ. In accumulation both firms have same marginal cost c. Interaction between the two firms will be frequent infinite.
Assume the subsequent data describe o/p in two different yrs. Compute nominal GDP in every yr.
Explain how much is saved at equilibrium. If savings fell by $200 at every level of GDP, illustrate what would be equilibrium level of income.
Population growth in developing nations has proceeded at unprecedented rates ower the past few decades.
can you suggest better methods of making the adjustments for the stated purpose. llustrate what general guide can you suggest as to elucidate how much price should be increased
Calculate the output level and price that maximizes total revenue.
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