A general question about efficiency in a non-standard case of demand and supply curves: demand curves are upward sloping and supply curves are downward sloping in this case. Can we say that equilibrium is still efficient?

Imagine if demand curves had positive slopes and supply curves had negative slopes. If Q^ was the intersection of these two curves, would Q^ maximize total surplus? Why or why not?

Environmental economics: externalities and costless bargaining. Coase Theorem and a simple example of how costless bargaining leads to an efficient outcome.

Jack and May are the only residents of a small island. Jack operates a papermill, and has costs given by MPC = 10+2Q. Jack gets a price of $24 for each unit of paper he sells. May hates the pollution that the mill produces, and has damages given by MEC = Q + 2. (a) Assume that property rights to the environment are established, and Jack has them. Further, assume that Jack and May can engage in costless bargaining. What will Jack's production level Q_ be in equilibrium? (b) What is the minimum amount May would have to pay for Jack to produce at Q_? What is the maximum amount May would be willing to pay for Jack to produce at Q_. (c) If May had the property rights, what is the minimum... click for more

econ

Length is not much of a factor in the evaluation, relevance is. These answers should be about 1/2 to 3/4ths of a page, excluding any diagrams you may include, where relevant. 1. What are the problems with determining the value of a public good to society? 2. Since economics seeks to bring about the efficient allocation of scarce resources, indicate clearly, which market is likely to bring about the greatest efficiency in allocation and why, compared to the other markets.

Economics Multiple choice

Please provide reason for answer. == A perfectly competitive market firm realizes an average of $11.00 and an average total cost of $10.00. Its marginal cost curve crosses the marginal revenue curve at an output level of 100 units. The current profit is $100.00. What is likely to occur in this market? (A) Price will go down (B) Firms will leave the market (C)Cost will go up (D)Cost will go down Details: Which is correct. (A) A firm with fixed cost always has losses for low levels of output. (B) A firm with fixed cost must incur economic losses if it chooses not to produce output. (C) A firm with fixed cost can't maximize profit in th short run. (D) A firm with fixed cost i... click for more

Return on bonds

1. What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year? 2. If a $12,000 coupon bond has a coupon rate of 8 percent, then the coupon payment every year is 3. The current yield on a $5,000, 8 percent coupon bond selling for $4,000 is