. Describe, with examples, each of the various decision rules under uncertainty that we studied in class (e.g. maximin, leximin, etc). Why do some of these rules require utility to be cardinal? Which rule would you follow in making your own decisions and why?. Describe, with examples, each of the various decision rules under uncertainty that we studied in class (e.g. maximin, leximin, etc). Why do some of these rules require utility to be cardinal? Which rule would you follow in making your own decisions and why?

1. Mr. Brown decided last year to raise chickens in his back yard. He built a chicken coop next to his property line with Mr. Adams. Mr. Adams finds the chickens annoying because of the smell, the noise they make, and because their feathers end up in his pool and can clog the filtering system.

It would be worth $500 to Mr. Adams to be free of the chicken noise and smell, and the need to frequently skim feathers from his pool. Mr. Brown could move his chicken coop to the other side of the yard for $350, which would cut the value of Mr. Adams utility loss from $500 to $250. Mr. Adams values the ability to keep his chickens at $400.

(3) a. Describe this situation using the economist’s concept of an externality

(3) b. Describe this situation in terms of conflicting property rights claims.

(4) c. What is the socially efficient outcome of this situation:

(i). No change is made

(ii). The chicken coop is moved

(iii). Adams gives up raising chickens

Explain your choice, using numbers.

(4) d. Assume that after discussing the situation and consulting lawyers, Adams and Brown learn that the law in their city is unclear regarding nuisance due to neighbor’s chickens. So, they go to court. The judge rules that Adams has every right to raise chickens and keep the coop where it is. Assuming that there are no transaction costs to bargaining between Smith and Adams, what will be the final outcome of the situation after this decision? Explain your answer.

(i). No change is made

(ii) The chicken coop is moved

(iii). Adams gives up raising chickens

(2) e.      T   F     In the legal case just described, Mr. Brown was the plaintiff.

(2) f.     T     F     According to the Coase theorem, even though this question assumes that

there are no transaction costs, different decision by the court would lead to different levels of relative welfare for Adams and Brown.

In order to stop the rampant spread of the virus throughout the population, health care workers and others use n95 masks. Graph the market for n95 masks in initial equilibrium and show how the virus will change the market. Be sure to graph the curves with the proper elasticities.

2. If the demand function for X is Q = 100 - P, and the supply function for X is Q = 40 + 2P, determine the effects on: (a) equilibrium price, (b) quantity traded and (c) government revenue (or cost) if:

1. A tax of $ 6 per unit produced is established. (Is it different from the case of establish a tax of $ 6 per unit consumed?)

In your own words, write a short business report (400-500 words) about Alibaba Group future plans for Internet profit.

Determine whether each of the following statements is true or false. You are also required to explain why, the answer is true or false, in other words provide the justification for saying so.

a. According to the theory of consumer behavior, more is always better.

b. Consumer must understand how much one product is preferred over another in order to rank order consumption alternatives.

c. Marginal Utility measures the consumer’s overall level of satisfaction derived from consumption activities.

5. Tort law, by assigning liability to various parties the for losses due to accidents, affects the incentives for those parties to take precautions to avoid accidents. Complete this sentence:

According to economists, socially optimal tort law will lead to behavior that minimizes . . .

What duties do you owe to the people closest to you, such as family, friends, and neighbors? What duties do you owe to people in general, any time and any place?

Dear Expert,

the course is BUS 3305: BUSINESS LAW AND ETHICS

UNIT 3: Tort Law

Learning Journal Unit 3

Please provide references

2. Wind turbines generate energy, but they also make noise that disturbs and even affects the health of people living within a mile of a turbine. Currently the amount of noise generated is determined by how many kilowatts the windmill generates. Two policies have been proposed to address this situation:

(i) A pigouvian tax on each kilowatt generated by a windmill, to be paid by windmill owners.

(ii) A tradable permit program, in which windmill owners are given permits allowing them to generate a certain number decibel-hours of noise, where “decibel hour” output is determined by multiplying the number of hours the windmill operates by the average number of decibels of noise it makes while operating. Windmill owners may buy and sell these permits.

T          F          a. The noise generated by the wind turbines is an example of a negative

externality.

T          F          b. Any policy that reduced the amount of noise generated by the windmills would

improve social welfare, although some policies would improve it more than others.

T          F          c. From the point of view of social efficiency, an advantage of the pigouvian tax

policy is that it would generate revenue for the government.

T          F          d. Both the pigouvian tax policy and the permit program would raise the price of

energy generated by the windmills.

T          F          e. Both the tradable permit program and the Pigouvian tax policy would

incentivize the discovery of technologies for reducing the noise generated by

windmills.

) 3. Currently, the term of copyright in the US is the creator’s life plus 70 years. Suppose that the term of copyright was shortened to ten years after the date of creation of the copyrighted work. List one social cost and one social benefit of this policy.

if your company sells expensive, high quality kitchen appliances, do you think the average college student will fit ideal customer profile?

A farmer has discovered that on his farm, he can get 30 bushels of corn per acre if he applies no fertilizer. When he applies N pounds of fertilizer to an acre of land, the marginal product of fertilizer is 1−N/200 bushels of corn per pound of fertilizer.

(a) If the price of corn is $3 a bushel and the price of fertilizer is $p per pound (where p < 3), how many pounds of fertilizer should be use per acre in order to maximize profits?

(b) Write down a function that states the farmer’s yield per acre as a function of the amount of fertilizer he uses and explain why it is representative of the yield per acre.

(c) The farmer’s neighbor, Johan has better land than him, as a matter of fact, for any amount of fertilizer that was applied, he gets exactly twice as such corn per acre with the same amount of fertilizer. How much fertilizer will Johan use per acre when the price of corn $3 a bushel and the price of fertilizer is $p per pound.

Economists are unique in how they think about, analyze and solve problems. Gwartney, Stroup and Sobel outline eight principles of economic reasoning to help understand how economists approach policy issues. Using the social, political and economic issues surround COVID-19, discuss how the pandemic applies to or demonstrates at least three of the principles listed below. Be specific in your explanation and provide sufficient detail to show both your understanding of each principle included and its connection. a. Incentives matter. b. Resources are scarce and opportunity costs exist. c. Economics agents attempt to maximize or minimize when making choices. d. Economic agents make decisions at the margin. e. Information is costly. f. Economic actions often generate externalities. g. Value is subjective. h. The best test of any theory is its ability to predict