Category: business economics

Order the answer to: Georges Bank, a highly productive fishing area off New England,

business economics

Order the answer to: Georges Bank, a highly productive fishing area off New England,

Posted By George smith

Question
Georges Bank, a highly productive fishing area off New England, can be divided into two zones in terms of fish population. Zone 1 has the higher population per square mile but is subject to severe diminishing returns to fishing effort. The daily

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Order the answer to: Reconsider the common resource problem given in Example 18.7. Suppose

business economics

Order the answer to: Reconsider the common resource problem given in Example 18.7. Suppose

Posted By George smith

Question
Reconsider the common resource problem given in Example 18.7. Suppose that crawfish popularity continues to increase, and that the demand curve shifts from C = 0.401 – 0.0064F to C = 0.50 – 0.0064F. How does this shift in demand affect the

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Order the answer to: There are three groups in a community. Their demand curves

business economics

Order the answer to: There are three groups in a community. Their demand curves

Posted By George smith

Question
There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by
W1 = $200 – T,
W2 = $240 – 2T,
W3 = $320 – 2T.
Suppose

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Order the answer to: A number of firms have located in the western portion

business economics

Order the answer to: A number of firms have located in the western portion

Posted By George smith

Question
A number of firms have located in the western portion of a town after single-family residences took up the eastern portion. Each firm produces the same product and in the process emits noxious fumes that adversely affect the residents of the community.
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Order the answer to: Why does free access to a common property resource generate

business economics

Order the answer to: Why does free access to a common property resource generate

Posted By George smith

Question
Why does free access to a common property resource generate an inefficient outcome?

Subject
business economics

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Order the answer to: An emissions fee is paid to the government, whereas an

business economics

Order the answer to: An emissions fee is paid to the government, whereas an

Posted By George smith

Question
An emissions fee is paid to the government, whereas an injurer who is sued and held liable pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two

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Order the answer to: George and Stan live next door to each other. George

business economics

Order the answer to: George and Stan live next door to each other. George

Posted By George smith

Question
George and Stan live next door to each other. George likes to plant flowers in his garden, but every time he does, Stan’s dog comes over and digs them up. Stan’s dog is causing the damage, so if economic efficiency is to

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Order the answer to: To encourage an industry to produce at the socially optimal

business economics

Order the answer to: To encourage an industry to produce at the socially optimal

Posted By George smith

Question
To encourage an industry to produce at the socially optimal level, the government should impose a unit tax on output equal to the marginal cost of production. True or false? Explain.

Subject
business economics

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Order the answer to: Externalities arise solely because individuals are unaware of the consequences

business economics

Order the answer to: Externalities arise solely because individuals are unaware of the consequences

Posted By George smith

Question
Externalities arise solely because individuals are unaware of the consequences of their actions. Do you agree or disagree? Explain.

Subject
business economics

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Order the answer to: Consider a market in which a firm has monopoly power.

business economics

Order the answer to: Consider a market in which a firm has monopoly power.

Posted By George smith

Question
Consider a market in which a firm has monopoly power. Suppose in addition that the firm produces under the presence of either a positive or a negative externality. Does the externality necessarily lead to a greater misallocation of resources?

Subject
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