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A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B are 2q.
Now suppose a new technology allows the communities to measure the quantity of pollution from the factory. What is the quantity of abatement that would be observed if the two communities could not reach an informal agreement among themselves, but each community could undertake a transaction with the factory? Would there be a free rider problem, yes or no? If yes, which party would free ride?
When all people use economic reasoning, incompetence is impossible, because if the profit of decreasing that inefficiency were greater than the expenses, the inefficiency would be eliminated.
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Make a short paper which relates how specific material from economic course where we cover supply and demand, elasticity and etc.
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
Could you please explain fully the difference among an increase in demand and an increase in quantity demanded, by giving an example of what would cause an increase in quantity demanded and please illustrate the effect of such an increase with a ..
The federal government, in an effort to stimulate the economy also decreases taxes on all individuals except those earning over $250,000 per year.
Discuss the strengths and weaknesses of such an application. In your answer, include a discussion of the three types of demands for money using the Keynesian model.
Discuss the Coase Theorem. Illustrate what this theory imply about the role of goverment in dealing with market externalities.
A profit-maximizing company operating in a perfectly competitive market can sell products for $100 a unit. The company has a cost function represented by:
Describe the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage.
Utilizing an aggregate supply and aggregate demand diagram, show why this self-correcting process involves only temporary periods of inflation or deflation.
suppose a person defects from cuba (a country that generally disregards the use of markets) to the united states and asks to see a market in action. when would you take her? did you give her a complete showing of this market?
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