Q: Price discrimination requires the ability to sort customers and the ability to
Price discrimination requires the ability to sort customers and the ability to prevent arbitrage. Explain how the following can function as price discrimination schemes and discuss both sorting and ar...
See AnswerQ: Four firms located at different points on a river dump various quantities
Four firms located at different points on a river dump various quantities of effluent into it. The effluent adversely affects the quality of swimming for homeowners who live downstream. These people c...
See AnswerQ: To encourage an industry to produce at the socially optimal level,
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.
See AnswerQ: George and Stan live next door to each other. George likes
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 econo...
See AnswerQ: An emissions fee is paid to the government, whereas an injurer
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 migh...
See AnswerQ: Why does free access to a common property resource generate an inefficient
Why does free access to a common property resource generate an inefficient outcome?
See AnswerQ: Public goods are both nonrival and nonexclusive. Explain each of these
Public goods are both nonrival and nonexclusive. Explain each of these terms and show clearly how they differ from each other.
See AnswerQ: A village is located next to 1000 acres of prime grazing land
A village is located next to 1000 acres of prime grazing land. The village presently owns the land and allows all residents to graze cows freely. Some members of the village council have suggested tha...
See AnswerQ: Public television is funded in part by private donations, even though
Public television is funded in part by private donations, even though anyone with a television set can watch for free. Can you explain this phenomenon in light of the free rider problem?
See AnswerQ: Explain why the median voter outcome need not be efficient when majority
Explain why the median voter outcome need not be efficient when majority-rule voting determines the level of public spending.
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