6. If Podunk's airport allows night takeoffs and landings, the 40 houses nearby each have a market value $3000 less than when no night takeoffs and landings are permitted. Suppose the residents have a property right to prevent night-time noise. The outcome of bargaining between the residents and the airport authority will be: a) Night flights unless each resident pays as much as $3000 b) No night flights unless the airport pays $120,000 in compensation. c) Night flights if the PDV of these flights exceeds $120,000. d) a) and c) e) b) and c)
Q: 1. What is purchasing power parity? 2. Why is a McDonald's Big Mac used to create the index? 3. What…
A: The Consumer Price Index (CPI) is a measure of inflation that tracks the average change in prices of…
Q: Rafe is optimally choosing to consume 6 apples and 3 bananas. The prices of apples and bananas are…
A: As the first order condition for the utility maximization problem is : MRS = Pa / Pb As, Pa = 7…
Q: As a manager of a chain of movie theaters that are monopolies in their respective markets, you have…
A: Pricing Strategy is an apparatus used to fix the cost of a specific item or administration by…
Q: Year Real GDP Nominal GDP 2019 $15,283.65 $16,260.44 2020 $17,573.60 $18,433.70 2021 $19,810.67…
A: GDP is the gross domestic product. GDP is the market value of all final goods and services produced…
Q: What will happen to the trade balance and the real exchange rate of a small open economy when…
A: The real exchange rate is a measure of the relative price level between two countries and is…
Q: Explain any two Determinants of Elasticity of the suppy?
A: The elasticity of supply definition is primarily based on the law of supply, which merely states…
Q: 4.35 For the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at…
A: Annual worth refers to the equivalent value of cash flows occurring over a one-year period. It…
Q: In the Solow–Swan model, a decrease in the rate of population growth will have what effect on the…
A: The Solow-Swan model, also known as the neoclassical growth model, is an economic framework that…
Q: suppose there are only two firms that sell Blu-ray players, Movietonia and Videotech. The following…
A: A multistage game steady state equilibrium known as the Nash equilibrium in economics and game…
Q: PLEASE SUBMIT AN IMAGE OF THE REQUESTED ILLUSTRATION DISCUSSED BELOW. (PLEASE MAKE SURE YOU LABEL…
A: In economics and business, there are three key concepts: total cost, fixed cost, and variable cost.…
Q: 4. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: Consider three different closed economies with the following national income statistics. Country A…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: Please briefly explain the results with explanation and clear point
A: The regression equation: lnPrice=1=a0+a1lnScrap+∑Characteristicsi+∑controlsi+ei
Q: The benefit principle states that_ a. people who benefit from the rule of law should pay taxes O b.…
A: The benefit principle is related to public finance. The benefit principle states that the burden of…
Q: How should environmental challenges be handled differently in developed and developing nations? What…
A: Environmental challenges refer to the problems and issues arising from the interactions between…
Q: For each of the following scenarios, begin by assuming that all demand factors are set to their…
A: Income elasticity of demand: It is the measurement of the change in the quantity demanded of a…
Q: 1. What are the origins of cyclical and structural debt?
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Assume all transactions are between private individuals. A U.S. citizen buys a Japanese bond. This…
A: Balance of payment records all the transactions between a country and the rest of the world. It…
Q: As the owner of a family farm whose wealth is $200,000, you must choose between sitting this season…
A: The average utility value of the outcomes, weighted by the likelihood that the outcome will occur,…
Q: Assume that the economy is currently in short run equilibrium but experiencing an inflationary gap.…
A: An inflationary gap refers to a situation in an economy where aggregate demand exceeds the economy's…
Q: Use a graph to illustrate the relevant category of price elasticity of demand.
A: Price Elasticity of Demand (PED): This measures how much the quantity demanded of a good responds to…
Q: After graduation, you just got hired by an engineering company and you were planning to take a loan…
A: Cost of the car P=26500 JD Yearly installment for car A =4200 JD Rate of interest i =9.5%
Q: following equations: C = 50 + .75(Y-T) I = 200 - 20r NX = 200 -50e M/P = Y -40r G = 200 T =…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you.…
Q: he country of Swan is very wealthy, with a high level of per capita income and capital. The country…
A: The Solow model focuses on the relationship between accumulation of capital, growth of population,…
Q: How much interest will they owe after the first year?
A: Given in question: Principal = $10,000 Rate = 8% per year (0.08) Time = 1 year
Q: 5. Problems and Applications Q5 Edison owns a water pump. Because pumping large amounts of water is…
A: Using the given information’s, we can construct the table for supply schedule as follows.
Q: You deposit $3,000 in a bank at an annual interest rate of 7%. What will your bank balance be in 27…
A: Formula for future value is given as: F = P(1+R)t F : future value P : Present value R : per annum…
Q: 5. Problems and Applications Q5 Edison owns a water pump. Because pumping large amounts of water is…
A: Using the given information’s, we can construct the table for supply schedule as follows. Price…
Q: we calculated the gains and losses from price controls on natural gas and found that there was a…
A: Demand refers to the quantity of a product or service that consumers are willing and able to…
Q: Suppose in a regression of weekly salaries on years of schooling for males(m) and females(f), the…
A: Regression equation: Wm = 50Sm (average male weekly salary) Wf = 40Sf (average female weekly salary)…
Q: Problem 2 A local girls soccer team decides to sell chocolate bars to raise some money for new…
A: The demand curve explains the relationship between the price level and the quantity. When it is…
Q: Sandy Cove is the only beach resort on a small island and the only beach activity it offers is jet…
A: In a monopoly market structure, There exists a single seller. The monopolist maximize its profit…
Q: Which of the following statements is not valid when the market supply curve is vertical? An…
A: The components of demand and supply govern the interaction between buyers and sellers in a…
Q: Moving to another question will save this response. Question 26 What will happen as a consequence of…
A: The increasing popularity of technology and electronic devices for educational uses is referred to…
Q: 3. Illustrate graphically two different types of market failure. Draw the quantity of the good that…
A: Market failure refers to the situation when the market fails to function properly causing a…
Q: What is the Present worth difference of Alternative A and B. Capital investment Annual Cash inflow…
A: For present worth analysis, both alternatives should have equal service life otherwise take the LCM…
Q: Provide a graphical analysis of the effect of a temporary but persistent increase in total factor…
A: Since there are more than three subparts and we are not allowed to solve more than 3, so the…
Q: Tom, a math major, examines Jane's economics class notes and observes that when price- taking firms…
A: Tom's observation is correct. When price-taking firms earn economic profit, they do not necessarily…
Q: The growth of real GDP per person in Australia between 1964 and 2000 was the result of: a. growth…
A: Productivity refers to the measure of output or results achieved in relation to the inputs or…
Q: Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each…
A: Comparative advantage refers to the ability of the nation to produce the goods at an opportunity…
Q: Suppose that a firm produces polo shirts in a monopolistically competitive market. The following…
A: Monopolistic competition is a market structure characterized by a large number of firms competing…
Q: Net Foreign Factor Income Corporate Profits Gross Private Domestic Investment Proprietors' Income…
A: Personal income refers to the total income received by individuals from all sources before any…
Q: 1. Consider the table below that shows labour demand and supply vary with the real wage in a small…
A: Employment refers to the number of people who are currently working and have jobs. It represents the…
Q: In the It's a Wonderful Life Bank Run, for instance, this demonstrates the following economic…
A: This is one of reserves is related to that type of banking system which is talk about a part of the…
Q: Consider a small open economy with no perfect capital mobility and fixed exchange rate regime. If…
A: In a small open economy with no perfect capital mobility and a fixed exchange rate regime, the…
Q: Discuss the differntaition between Neccesity and Luxury expendses in life. Why Islam discourage…
A: Necessity goods, also known as essential goods or basic needs, refer to products or services that…
Q: e) If there are two firms Atlas and Bowden in this market with the same earlier total cost function…
A: Cournot competition is an economic model that describes how companies in industry independently and…
Q: The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC (Q) = 60 – Q +…
A: Fixed cost refers to the expenses that remain constant regardless of the level of production,…
Q: 4. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in…
A: There are various factors that affect the demand and/or supply of a particular good and/or service.…
Q: The demand curve facing a firm selling a product to a perfectly competitive market is: A B C…
A: In a perfectly competitive market, the interaction of supply and demand determines the equilibrium…
Step by step
Solved in 3 steps
- Figure 8.1 shows the marginal pollution control costs per ton for a firm that would pollute at Qmax without any regulation. Suppose a pollution tax of T1 per ton were implemented, with the firm reducing pollution to Qtax. What area(s) would represent(s) the firm’s pollution reduction costs, not considering the taxes it pays? Group of answer choices A+B A+B+C B+C D CFigure 8.1 shows the marginal pollution control costs per ton for a firm that would pollute at Qmax without any regulation. Suppose a pollution tax of T1 per ton were implemented but the firm did not reduce its pollution from Qmax. What area(s) would represent(s) the tax paid by the firm? Group of answer choices B C+D A+B+C+D B+C B+C+DUnder some conditions, command-and-control pollution standards could be just as good as a cap-and-trade program at bringing about a cost-effective allocation of total abatement responsibility across firms. Furthermore, the regulator could save the cost of running a cap-and-trade program. When would this most likely be the case? a.) If firms have very different technologies, are varying sizes, and there is a mix of older and newer plants, so it is safe to assume that the firms probably have very different marginal abatement cost curves. b.) If all firms have the same types of technologies, are about the same size, and have been in production for approximately the same length of time, so it is safe to assume that each firm’s abatement costs are similar, and the regulator can issue a one-size-fits-all standard. c.) If the regulator gathers detailed information about the technologies employed by every firm so it can figure out each firm’s marginal abatement cost curve. The…
- 9. Which is not a valid argument favoring the use of output regulation over input regulation?a. Firms may have different ways of reducing pollution.b. Firms may know better than the government how to reduce pollution cheaply.c. It may be easier to monitor the use of technology than the level of emissions.d. Output regulations, when enforceable, can ensure that the efficient level of pollution is not exceeded.7 . Suppose that maintaining the hiking areas costs $1.5 million annually, but financed instead by a tax of $4.41 per unit of pulp and paper production. If inverse demand for pulp and paper is given by P=15.88-(1.47/1,000,000)Q and marginal private cost is given by MPC=10, and if production of pulp and paper generates a negative externality given by MEC=4.41, then net benefits to society of preserving the hiking area will be __________________ million annually. (process of solving)Suppose that there are only three types of fruit sold in the United States. Annual sales are 1 million tons of blueberries, 5 million tons of strawberries, and 10 million tons of bananas. Suppose that of those total amounts, the Sunny Valley Fruit Company sells 900,000 tons of blueberries, 900,000 tons of strawberries, and 7.9 million tons of bananas. a. What is Sunny Valley’s market share if the relevant market is blueberries? If a court applies the “90-60-30 rule” when considering just the blueberry market, would it rule that Sunny Valley is a monopoly? b. What is Sunny Valley’s market share if the relevant market is all types of berries? Would the court rule Sunny Valley to be a monopolist in that market? c. What if the relevant market is all types of fruit? What is Sunny Valley’s market share, and would the court consider Sunny Valley to be a monopolist?
- Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each residents willingness to pay for each acre of the park. Acres Mary Bill Tricia1 $14 $18 $302 10 14 263 6 10 224 4 6 185 2 3 146 0 1 107 0 0 6 a)Suppose the cost to build the park is $33 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere?A. 2 acresB. 3 acresC. 4 acresD. 5 acres b)Suppose the cost to build the park is $16 per acre. How many acres should the park be to maximize total surplus from the park in Anywhere?A. 2 acresB. 3 acresC. 4 acresD. 5 acres2.- Assume that consumers are uniformly distributed along a one-mile stretch of a beach. N ice cream vendors are pondering where to position their carts. The price that they are allowed to charge is fixed by the EACAC (Equal Access to Coolness for All Coalition). (Also, each consumer will buy exactly one ice cream.) (a) Show that there is no equilibrium (in locations) if N=3. (b) Suppose N=5 and vendors position their cart each at one of the (mile) points ( 1/6, 2/6, 3/6, 4/6, 5/6 ) is that an equilibrium?5. Correcting for negative externalities - Regulation versus tradable permits Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs, so reducing pollution is more difficult for some firms than others. The following table shows the cost each firm faces to eliminate each unit of pollution. For each firm, assume that the cost of reducing pollution to zero (that is, eliminating all 4 units of pollution) is prohibitively expensive. Firm Cost of Eliminating the... First Unit of Pollution Second Unit of Pollution…
- Suppose that the market for a certain good has an inverse demand of P = 200 − Q.The aggregate private marginal cost for the firms that produce the good is MC = 20 + Q.However, production of the good also creates pollution with an external marginal cost ofEMC = 10 + Q/2.a) If this is a perfectly competitive market with no regulation, what is theequilibrium price and quantity produced?b) Suppose instead that the market is a monopoly. Calculate the profit-maximizingprice and quantity.c) Determine the socially efficient price and quantity for the good.d) Calculate the socially optimal Pigouvian tax to levy on the competitive firms tomake them produce at the socially efficient level.You are an industry analyst who specializes in an industry where the market inverse demand is P = 200 − 4Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 12Q. a. What is the socially efficient level of output? b. Given these costs and market demand, how much output would a competitive industry produce? c. Given these costs and market demand, how much output would a monopolist produce? d. Discuss actions the government might take to induce firms in this industry to produce the socially efficient level of output.19.6 Suppose there are only two individuals in society. Person A’s demand curve for mosquito control is given by qa = 100- pfor person B, the demand curve for mosquito control is given by qb= 200-p Suppose mosquito control is a pure public good; that is, once it is produced, everyone benefits from it. What would be the optimal level of this activity if it could be produced at a constant marginal cost of $120 per unit? If mosquito control were left to the private market, how much might be produced? Does your answer depend on what each person assumes the other will do? If the government were to produce the optimal amount of mosquito control, how much will this cost? How should the tax bill for this amount be allocated between the individuals if they are to share it in proportion to benefits received from mosquito control?