What do you know about COASE theorem? Under what conditions COASE theorem would not work effectively or break down? (Note: Your answer should be in bullets)
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What do you know about COASE theorem? Under what conditions COASE theorem would not work effectively or break down?
(Note: Your answer should be in bullets)
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- Write short-notes on Rybczynski Theorem(RT) and H-O theoremDefine and explain the term "ethical dilemma"? Cite an example.A4 1. Two chemical companies, A and B, operate in a small New England town. Every week A releases 40 gallons of dioxin into the town’s aquifer, while B releases 30 gallons during the same time frame. It would cost A $800 per gallon to clean up its production, while B can clean up its waste at a cost of $500 per gallon. After this issue is raised at a town hall meeting, the town’s residents vote to reduce total dioxin pollution to 20 gallons per week. a. What would be the total cost of pollution reduction if each company were limited to 10 gallons of waste per week? b. What would the total costs be if each company received 10 gallons worth of tradable pollution credits? 2. A wheat farmer and a cattle rancher occupy adjacent parcels of land. Every year the farmer builds a fence to keep the cattle out of his field, and every year the rancher tears the fence down so that the cattle can roam free. The farmer values the wheat that gets destroyed at $300, while the rancher values having a…
- It costs $1 million in R&D to develop a new diabetes treatment. The marginal cost of producing and marketing a treatment, once discovered, is $10. Suppose that Pfizer currently is selling a treatment that is covered by a valid patent, which is set to expire in one year. What is the most likely outcome of a proposed law that would allow generic drug companies to enter any market 5 years before the expiration of the patent covering it? Question options: a) More diabetics would use the treatment Pfizer invented, and drug companies would invest more in R&D for future treatments b) Fewer diabetics would use the treatment Pfizer invented, and drug companies would invest more in R&D for future treatments c) More diabetics would use the treatment Pfizer invented, and drug companies would invest less in R&D for future treatments d) Fewer diabetics would use the treatment…It costs $1 million in R&D to develop a new diabetes treatment. The marginal cost of producing and marketing a treatment, once discovered, is $10. Suppose that Pfizer currently is selling a treatment that is covered by a valid patent, which is set to expire in one year. What is the most likely outcome of a proposed law that would allow generic drug companies to enter any market 5 years before the expiration of the patent covering it? A. More diabetics would use the treatment Pfizer invented, and drug companies would invest more in R&D for future treatments B. Fewer diabetics would use the treatment Pfizer invented, and drug companies would invest more in R&D for future treatments C. More diabetics would use the treatment Pfizer invented, and drug companies would invest less in R&D for future treatments D. Fewer diabetics would use the treatment Pfizer invented, and drug companies would invest less in R&D for future treatmentsNot sure how this problem should be solved
- 50 people travel from Mississauga to Toronto. The Go Train takes 20 minutes. The average time for a person to reach downtown when driving is t = 100 + 0.5q and it depends on the number of D drivers on the road. a. Give a labelled diagram to compare the non-cooperative solution to the cooperative solution. Label the efficiency loss. The Marginal Time of commuting t' = 100 + D is twice as steep with the same vertical intercepts as the average time of commuting t = 100 + 0.5D. b. What is the total time for all 50 people if they behave non - cooperatively? What is the total time if they behave cooperatively. c. Use your diagram to show how a highway toll (per unit tax) could be used to correct this efficiency loss.Tesla article: Bringing all aspects of Tesla production under one roof will allow Musk to take advantage of economies of scope and scale. Group of answer choices True FalseTwo friends, Khalid and Mahmood, are going to a watch a world cup football match. They play a simple game in which they hold out one or two fingers to decide who will pay for the other's ticket. Khalid wins if the fingers held out add up to an even number; Mahmood wins if the fingers held out add up to an odd number. The price of the ticket is 25 OMR. Construct a payoff matrix for the game. Is there a unique Nash equilibrium in this game? Which strategy should a player use to maximize her chances of winning the game?
- Three roommates, Jim, Saleem, and Ritesh, are thinking about buying a new speaker system for their apartment. The speaker system would be a public good if they buy them, and the total cost would be $300 which would be shared equally among the three. Jim values it at $80, Saleem values it at $140, and Ritesh values it at $70. If the speakers are purchased each person gets a payoff equal to their net valuation (valuation minus cost share); if they are not purchased each gets zero payoff. a)Is it socially efficient that they buy the speaker system? With reference to the definition of a public good, why or why not? The roommates decide that they will write down their net valuations, and if these reports sum to more than zero, they will buy the TV (sharing the cost equally), or else they will not. b) If all were to report their true valuations, what payoff would each agent earn? c) Show that if Jim and Ritesh submit their true net valuation, then Saleem does better by submitting a false…What is the goal of an organizational ethics program? What are the essential elements of an organizational ethics program? Be specific! How would you implement them in your current or future organization.Complete the following table of basic calculations. For Percent Contribution Margin, use (P-MC)/P. Round to the table standard. Table of Basic Calculations Price Quantity Demanded Total Revenue Marginal Revenue Variable Cost Total Cost Average Variable Cost Marginal Cost Profit Percent Contribution Margin 18 600 10800 5210 5710 8.68 5090 17 11900 11 6140 8.06 4.30 5760 0.75 16 800 12800 9 6135 7.67 4.95 6165 15 900 13500 6700 7200 7.44 5.65 6300 0.62 14 1000 14000 5 7335 7835 6.35 6165 13 1100 14300 3 8060 8560 7.33 0.44 1200 14400 1 8900 9400 7.42 8.40 5000 0.30