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The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC=0.02Q associated with Q units of nitrogen oxides output of a chemical process per month. There was no evidence of external benefit. The marginal social benefit was estimated as MSB=50-0.4Q and the marginal social cost as MSC=2+ 0.4Q
What is the competitive solution?
What is the socially conscious solution?
If you start with the competitive solution (Q=?) and you want to assess a Pigouvian tax equal to the externality, how much would that tax be?
Theoretically, What other policy alternatives to the Pigouvian tax exist? Which alternative do you prefer? Why?
Increasingly, a key goal of marketing is to develop deep, enduring relationships with all people or organizations that could directly or indirectly affect the success of the firm’s marketing activities. Discuss the merits of relationship marketing. D..
An individual purchases quantities a, b, and c of three different commodities whose prices are p, q, and r, respectively. The consumer spends m dollars, where m > 2p, and the utility function is given by. Show that the optimal expenditure on the seco..
Suppose the Japanese interest rate is I% while the interest rate in Britain is 3%. Interest rate parity predicts that relative to the Japanese Yen,
You are tasked with developing a large-scale website that allows U.S. citizens to manage and update their passports. Consider the following:
Live happley is a small player in the apple business and has no individual effect on wages and prices. Suppose that the market wage for apple pickers is $200. Assuming that all the apple-producing firms have a similar production schedule, a decrease ..
Are salsas and chips complementary or substitute goods.
A profit maximizing monopolist faces a demand function given by Q(p)=70-p. The cost function is C(q)=5q. Suppose that the government introduces a tax of $10 per unit of output. As a result of the tax, the monopolist will? (increase the price to what?..
What is the relationship between health insurance coverage andother aspects of financial planning?
Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.
Suppose a particular labour market were in market-clearing equilibrium. What could happen to cause equilibrium wage to fall. If all money wages rose with inflation each year, how would real wages in this market adjust.
In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potentia..
Two factors determine the legal reserves that a commercial bank must hold by law.
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