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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
1.What two policies could you use to reduce the total amount of emissions?
2.Why do you think they each would work?
3.What would the benefits of each action be (besides emissions reduction)?
4.What would the costs of each action be?
5.How would you decide what was the best level of emission reduction?
A firm can seek any combination of quality and price it chooses. Thus, it can go with a low quality-low price strategy or use one which combines high quality with a high price. Ideally, of course a high quality and a LOW price will be the most pow..
The following quotations are from an article in the Financial Times on November 9, 2007:
Suppose voter A perfers candidate 1 to 2 to 3 to 4 (where there are 4 candidates). Show that all actions that consist of voting for up to three candidates and not skipping a lower numbered candidate are not weakly dominated (voting for 1 only, vo..
Illustrate what are automatic stabilizers. What are some examples. What are your thoughts about the limits of fiscal policy.
In 2005 the US was close to full employment, but many observers and economists were worried about its trade deficit, which was over $700 billion per year. Suppose macroeconomic policymakers wanted to maintain the level of real GDP
A monopoly is manufacturing a level of output at which price is $80, marginal revenue is $40, average total expenses is $100, marginal cost is $40and average fixed cost is $10.
You have been Employed through a private consortium of South African orange growers to predict the impact on the price and output of oranges under the following situation.
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
suppose Arnor and Gondor are two very similar countries that started out with identical population, technologies, etc. except that Gondor has a much higher mortality rate due to a more hazardous geographical location.
Assume that the Fed is needs to keep the inflation rate so provide an anchor for inflation expectations.
Compute the own price elasticity of demand at a price of $4. What is the inverse demand curve for the radio station
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
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