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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?
Suppose that the government is debating whether to spend $100 billion today to address climate change.
Hero Nakamura is CEO of the Cola King Bottling Company a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
Economic laws are established in order to make successful prediction of the outcome of human action.
Compute the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.
Draw the isoquants for coffee production. Write down a mathematical expression for the production function for coffee.
illustrate what constitutes a perfectly competitive marketplace structure. Support your argument with empirical evidence wherever possible.
Without further use of Excel, illustrate what is the probability (in %) that a randomly selected orange will contain less than 4.2 ounces of juices?
Suppose a politician promises a program that will give Amanda and Britney 70 units of utility for each.
As if prices increase by 3% per year over that time, approx explain how much do you gain by keeping $100 in the bank for a year.
While grading a final exam, an economics professor discovers that two students have virtually identical answers. Illustrate which outcome do you expect.
Illustrate the total price of production (including the cost due to environmental damage) at the unregulated equilibrium quantity of 400.
BP Oil is in the process of replacing sections od its Prudhoe Bay, Alaska oil transit pipeline. Illustrate what required return does the project become financially unacceptable.
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