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The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. That company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effect with this have on its optimal price?
Each year in the United States nearly 5 billion pounds of discarded carpet end up in land fills. In response to this situation, the carpet manufacturer has decided to start a take-back program whereby obsolete carpet is reclaimed at the end of its..
Calculate the ES in autarky and under conditions of free trade. Assume the world price is $45. c) Apply a $2.50 tariff and recalculate economic surplus (including tariff revenue). Has ES gone up with imposition of the tariff d) Evaluate the fo..
As an option to standards, one rule proposal is use of allow trading among point sources of water pollution. Provide some major reason why this is advantageous from an economic perspective & from an environmental perspective.
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Josephine makes $100 a day as a flower shop attendant. She takes off two days of work without pay to travel to another city to attend her sister's wedding. The cost of transportation for the trip is $180 round trip.
Many demographers predict that the United States will have zero population in the 21st century in contrast to average population growth of about 1 percent per year in the 20th century. Use the Solow model to forecast the effect of this lowdown.
Is there a certain protocol that United State companies must follow when advertising in Singapore? I understand that advertisements cannot contain any hype.
Since the US gov't was running a budget deficit at the time, assume that the war was financed by gov't borrowing. How does the equilibrium interest rate and private investment change in response to gov't expenditure on the war
If a few oil-producing countries in the Middle East decide to jointly limit the production of oil, how they will agree to lower the price of oil in order to increase their profits. they are forming a cartel. they would like the price of oil to be ..
Petroleum products are in limited supply, what do you recommend the United States government should do to prepare for a shortage of gasoline? Describe your answer.
Based on the Keynesian theory in does it matter what the money is spent on? discuss and explain the amount of stimulative effect we can expect, depending on how the stimulus is financed.
In the 2012 fiscal year, $74.6 billion in food assistance was distributed to 47.7 million Americans through the Supplemental Nutrition Assistance Program (SNAP). This represents about 12.5% of the U.S. population and about $135 per person per mont..
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