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Suppose that there are two polluters in San Diego, currently producing 20 tons of pollution per month each, for a total of 40 tons. The local govt. decides to reduce pollution by 25 tons per month (to a total of 15 tons/month). The marginal costs of abating pollution for each polluter are given by MAC1 = 4 + (A1/2) (TAC1 = 4A1 + (A1) 2 /4) and MAC2 = A2 (TAC2 = (A2) 2 /2). What is the emissions charge that if imposed will achieve the efficient allocation?
a) t = 10.
b) t = 11
c) t = 14
d) t = 25
Using an aggregate supply/aggregate demand model chart the short run effects of decreasing government spending (assuming you began in a short run and long run equilibrium)
Why does Apple tightly hold on to the development of iOS but outsources some of the design and all the manufacturing of iPhone handsets?
Identify a good or service that you've purchased in the past week. Identify a substitute for that good or service.
How should immigration law be reformed? Does the United States have any ethical duties to undocumented (illegal) aliens who come here to work? How can the law be fair and balance the rights of immigrants, their families, the companies that employ the..
Which of the following best describes a policy which moves the economy to the right and downward along a given short-run Phillips Curve?
1. Define nominal and real GDP. Are these flow or stock concepts? Explain why the differences between nominal and real GDP are important
Deficit Reduction: Good or Bad for Investment? You may have heard this argument in some form before
Show the equilibrium in the above economy (as described in Question3) on a properly labelled diagram using Demand and output lines. If the economy's current production is at $1800 million, how would you characterize the situation in the economy? What..
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A Mexican restaurant offers a special menu for children for which there is a choice of a beef taco or a chicken burrito with either french fries, refried beans or a salad, plus one of four beverages. How many special menu possibilities are there?
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Delta Dawn’s Bakery is considering purchasing a new van to deliver bread. The van will cost $15,000. Two-thirds ($10,000) of this cost will be borrowed. The loan is to be repaid with four equal annual payments (first payment at t = 1) based on an int..
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