Which competition among firms becomes nithless

Assignment Help Microeconomics

Reference no: EM13862007

Part I: For questions In this section, first determine whether you agree or disagree with the statement and then provide an explanation for your answer. (4 points each x It/ =40 points;

I. The tens market failure refers to a situation in which competition among firms becomes nithless. 2. Government output is hard to account for because most often government keeps secrets about what it produces. 3. The local government is the largest taxing entity in Canada. 4. In Canada, all levels of goverrunents - federal. provincial and local - receive the largest amount of revenue from perumal income taxes. 5. "Fret riding" is a characteristics of a good that Is both rival and excludable. 6. Inn direct democracy, politicians are the people who enjoy the benefits of a public good without contributing towards the cost of producing the good. 7. The government provides public goods because private markets would not pnxluce any of the good. 8. Research into new technologies results in negative externalities because government funding for research causes less government spending in other areas. 9. Marginal damages are hard to measure because they only occur over a long period of time. 10. Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.

I. What is government? What arc the two views of government? ubscribei Why? Which view do you 2. Discuss briefly at least four causes of the government growth with special reference to Canada. 3. Answer the following questions regarding Parcto Efficiency:

a. What do you understand b. What is the condition of words its meaning. c. What is the condition of words its meaning. il. %That is the condition of words its meaning.

if an allocation of resource is Pardo Efficient? Pareto efficiency in a pure exchange economy? Explain in Parcto efficiency in o productioneconoiny? Explain in Pareto efficiency in the pmvision of public good? Explain in

Which of the following do you consider pure public goods? Private goods? Why? a- Highways It Lighthouse c. Swimming pool d. Free fitness classes offered at the GIX

What is is negative externality'? Explain why a negative externality results in a misallocation of resources. Use graph to support your answer.

A beekeeper lives adjacent to a 45-acre apple orchard. The orchard owner benefits from the bees because each hive pollinates about 1/2 acre of apple trees. The orchard owner pays nothing for this service, however. because the bees come to the orchard without his having to do anything. There arc not enough bees to pollinate the entire orchard, and the orchard owner must complete the pollination by artificial means. at a cost of S25 pa acre of trees.

Suppose that the beekeeper's marginal cost is given by MC = 30 + 0.5Q, where Q is the number of beehives. Further suppose that the market value of the honey from one hive is 550.

a. In the absence of any bargaining, how many beehives will the beektxper maintain and what portion of the apple orchard will be pollinated? b. What is the socially optimal level of beehives? c. What do you conclude?

Reference no: EM13862007

Questions Cloud

Differences between the republican and democratic parties : differences between the Republican and Democratic parties

Firm is expected to earn an economic profit : Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted ..

How does it differ from the factor endowment model : Describe the Stolper-samuelson theory of trade. How does it differ from the factor endowment model? What are its predicted effects on wage-inequality in (a) industrialized countries that are capital abundant and (b) developing countries that are labo..

Affect the general unemployment level in the economy : Why might we not expect free trade to affect the general unemployment level in the economy, but it will affect some more than others?

Which competition among firms becomes nithless : I. The tens market failure refers to a situation in which competition among firms becomes nithless. 2. Government output is hard to account for because most often government keeps secrets about what it produces. 3. The local government is the largest..

Resulting equilibrium cause in market : During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. What would a price ceiling set below the resulting equilibrium..

Price ceilings and price floors : Discuss whether you think we should continue to have a zero price for using a freeway. Or should we have transponders mounted on the dashboards of vehicles, as practiced in Singapore, which monitor and track the miles-driven within a city. Discuss wh..

What is the expected end of period price : What is the weighted average cost of capital of this company if the debt/equity ratio is 0.25 and the debt is considered to be risk-free? What is the expected end of period price?

Concepts of consumer-producer surplus-deadweight loss : Post and discuss why the tax credit enacted by the 2009 American Recovery and Reinvestment Act has no effect on the employees’ supply of labor using the concepts of consumer surplus, producer surplus and deadweight loss. Apply the effects of the Soci..

User Account

All Pages