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Question: A collectivity consists of three persons, A, B, C. Demand for some collectively provided service, x, being for person A, P = 40/x; for person B, P = 20/x; and for person C, p = 10/x. The marginal cost is 10.
(i). What is the SMB (social marginal benefit) function/curve for this community?
(ii) What would be the socially efficient level of x according to the Benefit principle or Samuelson condition?
(iii) What would be the level of x according to majority rule with equal head tax?
(iv) Did the majority rule in democracy produces efficient amount of public good?
Suppose that Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. What was the inflation in the prices faced by consumers?
did monetary policy contribute to the economic crisis of 2008? why or why not? how did monetary policy makers respond
a pet store is considering adding an employee discount of 25 off anything in the store to the benefits the employees
Find the net present value of a project that has cash flows of -$12,000 in Year 1, +$5,000 in Years 2 and 3, -$2,000 in Year 4, and +$6,000 in Years 5 and 6.
as an international economist you have been asked to prepare a short speech which answers the following questionshow
Using the midpoint method, what is the cross price elasticity of demand for landline and mobile service
Discuss the long run implications of monopolistic competition with respect to (a) utilization of plant, (b) allocation of resources, and (c) advertising and product differentiation. Compare this to the situation of perfect competition.
exercise 1 quantity quotaa new chemical cleaning solution is introduced to the market. initially demand is qd 1000
Which of the following would cause a movement along the demand curve for hot dogs? Choose all that apply. The change in the number of consumers, the change in the price of hot dogs or the change in the price of soda( compliment for hotdogs)
Using demand and supply and competitive analysis, describe what happens to a pharmaceutical company's revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigat..
Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd,T=tY and Yd=Y-T Show that equal change in taxand government expenditure areexpansionary to theeconomy?
The manager of the surgery department at a hospital which serves mostly Medicare patients. The hospital performs 1,000 surgical operations per year using the traditional method. The Medicare payment for a surgical operation using the traditional meth..
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