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Q. there are three Industrial firms in Happy Valley.
Firm Initial Pollution Level Cost of reducing pollution A 70 units by 1 unit B 80 units $ 20 C 50 units $ 25 $ 10
government wants to reduce pollution to 120 units, so it Provides each firm 40 tradable pollution permits.
a. Who sells permits and Explain how many do y sell? Who buys permits and Explain how many do y buy? Briefly explain why sellers and buyers are each willing to do so. Illustrate what is total cost of pollution reduction in this situation?
b. Explain how much higher would cost of reduction be if permits could not be tradable?
In a Cournot equilibrium, where both firms produce positive amounts of output, which firm do you expect to produce more. Explain your answer.
Suppose which in the 1990s, the average retail price of a roll of Kodak film was $6.95 also which Kodak's marginal cost was $3.475 per roll.
Discuss what happens to equilibrium price and sales. Explain why or why not this makes sense in the real world.
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What is the value of net domestic product (NDP)? What is the value of national income (NI).
Illustrate what is the effect of Westland's expansionary monetary policy on Eastland's nominal exchange rate in the short run also in the long run.
Why does the assumption of independence of risks matter in the examples of insurance. Illustrate what would happen to premiums if the probabilities of house.
Illustrate what type of market structure would this behavior likely be prevalent. Illustrate what does this behavior accomplish for the firm.
Provide the information, is it surprising that the company's revenueincreased when it decreased the average selling price of its phones.
Assume 200 videotapes are rented when the price is $4. If the price drops by $.80, the number of videotapes rented increases to 220. Which of the following statements about the non-arc price elasticity of demand is true.
short-run average cost curve and the long-run average cost curve are both U-shaped for the same reasons.
Calculate the following: Rate of Return and Calculate the following: Net Present Value Index
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