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Firm A produces 30 tons of pollution and its cost of pollution reduction = $100 per ton
Firm B produces 20 tons of pollution and its cost of pollution reduction = $200 per ton
Firm C produces 20 tons of pollution, its costs of pollution reduction = $400 per ton
Gov gives firm A 15 tradeable permits, and firm B&C each 10 traceable pollution permits (each permit = allows right to 1 ton of pollution)
What is the total cost of pollution reduction?
Suppose that capital per hour of work grows by 3 percent and technology grows by 1 percent over a one year interval. What is the growth rate of real GDP per hour of work? Show the formula and all work. To understand what causes productivity growth, w..
Analyze the following economy (two goods,two periods,two representative consumers with endowments).. Xavier has Cobb-Douglas preferences over consumption today (A1 for apples today) and tomorrow (A2) of the form UX=.51 log(A1 ) + .49 log(A2 ). He beg..
Marty ordered 100 reams of colored construction paper for his after-school art workshops. Bulk construction paper is shipped in 12 ream bundles (the industry standard). The shipment comes and Marty opens the nine bundles (108 reams). Can he return th..
Identify what you will say on each of the following points: the role of state governments in public health, federal and state governments' involvement.
The market price of cheeseburgers in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because a new type of grill allows restaurants..
Ben is the manager of a branch of a large bank. He has regularly taken money from customer's accounts for his own use and changed the bank records to cover his actions. Ben is guilty of
For a competitive market,
Describe the characteristics of Oligopoly. What are some industries that behave like oligopolists?
If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.
In order to create an effective incentive compensation scheme, you must have. Principal-agent problems: Principal-agent relationships:
Which of the following correctly orders bank assets from lowest to highest interest rates paid to the bank?
At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your an..
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