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A steel factory has the right to discharge waste into a river. The waste reduces the number of fish, causing damage for fisheries. Let X denotes the quantity of waste dumped. The marginal damage, denoted MD, is given by the equation MD = 2 + 5Q. The marginal benefit (MB) of dumping waste is given by the equation MB = 34 - 3Q. (a) Calculate the efficient quantity of waste. (b) What is the efficient fee, in dollars per unit of waste, which would cause the firm to dump only an efficient quantity of waste? (c) What would be the quantity dumped if the firm did not care about the fishery?
Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-ma..
Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to prevent exchange rate risk):
Explain the difference between normative and positive economics. Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.
Describe some of the personal and psychological factors that may influence what consumers buy and when they buy it. Identify the ways in which business-to-business (B2B) markets differ from business-to-consumer (B2C) markets. cite sources
Rent controls place price ceilings on rents at levels below market equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using demand and supply analysis, answer the following questions:
Q=55-0.5PGiven the firm’s demand function Q=55-0.5P (where P = price and Q = rate of output), and the total cost function TC=20+Q+0.2Q^2 where TC = total cost, determine a. The total revenue functions for the firm.
Talk about six economies of worth, or sets of values, that we prioritize differently. Although we may not always prioritize our values the same way in different situations, I'd like to think about how you would rank these six economies of worth for y..
Zack quits his job at a consulting firm, which pays $40,000 a year, to enrol in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-ye..
Determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
What is the motivation for a bond issuer to issue bonds in a foreign market?? What are the positive economic effects of these transactions for the issuer/investor’s home economy and for the world’s economy? Negative effects?
Define and explain the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.
Suppose that the demand for federal funds curve is such that the quantity of funds demanded changes by $160 billion for each 1 percent change in the federal funds interest rate. Also, assume that the current federal funds rate is at the 3 percent rat..
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