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The externality

For each of the examples below, please answer the following: a. Does an externality exist? If so, classify the externality as positive/negative (or both). b. If an externality exists, determine whether the Coase Theorem applies (i.e. is it possible to assign property...

Private Costs and Social Costs of the project

  The country of WWTWB (Whichever Way the Wind Blows) is considering implementing a project that will install a windmill farm 10 miles offshore of a rapidly growing beach community. You have been requested to undertake a cost-benefit analysis to evaluate the...

The Amount of Resource Extracted in Each Period

Consider a two-period model in which there is a fixed supply of a depletable resource. The demand for this resource is constant over both periods and is given as: P = 176 – 0.4Q and MC = 44 There is an initial resource endowment (supply) of 1000 units of the...
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