2. A community suffers from a pollution problem created by a polluter with MAC=60-2E. The damage to community from the pollution is captured by MD= 3E.

(a) If an emission the tax rate of $16/unit is applied, what will be the polluter's compliance costs in equilibrium? Show work.

(b) If emission standard is set at E= 20, what is the amount of compliance costs faced by the polluter? Show work.

(c) What is the best way to choose standard from the society's point of view in this situation? Show work.

Crunch Fitness company started operating in Melbourne in January 2016. The company experienced significant growth and expansion since it had listed on the ASX with only 20 centres. By January 2019 they were running 300 fitness centres across Australia. Their cash flows had grown significantly over the four years of operation. Crunch Fitness company was led by senior management who had aggressive expansion strategy, relying heavily on borrowings from the banks. Moreover, the management focusing on short term targets and not considering long term impacts, encouraged high risk taking. The Board was also ignorant of the risk facing the company. The company went from a positive cash flow of $400 million from its operating activities in its 2018 full year accounts to a deficit of almost $150 million in the second half of 2019. In February 2020, its Board concluded the company had insufficient cash to repay nearly $1 billion of debts to creditors and appointed administrators to take control of the company. Few months later Crunch Fitness ceased its operations.

Discuss the aspects of corporate governance and board mechanisms that could have served to limit the likelihood of Crunch Fitness company failure.

Would an industry where firms can easily and quickly increase capacity be more or less likely to collude relative to an industry where capacity growth takes longer? Explain using ideas about collusion

What are some of the types of payment models for care providers and how does this affect provider productivity and value of care provided (Getzen, Health Economics and Finance 2013, Chapter 6)?

Economists believe that many or even most mergers (or acquisitions) between two purely vertically related firms will not have negative impacts on consumers and may benefit consumers. Other than economies of scale or scope that is also present with horizontal mergers, what might explain this often-favorable view of vertical mergers?

From Tesla’s website in 2014: “A year ago, Tesla introduced a Resale Value Guarantee that gives customers the option to return their Model S after three years for a known value. When combined with a car loan provided by Tesla’s banking partners, this program gives customers the functional equivalent of a lease.” Discuss how this program might help Tesla to solve the durable good monopoly problem described by Ronald Coase. Carefully explain the durable good problem and how this type of policy might relate to it.

You are thinking about launching a new line of hats. You need to decide whether to make your hats relatively similar or different from other hats that are currently being sold. Other than considering consumer preferences, what strategic consideration should you consider in choosing how much to differentiate yourself from other hat sellers/milliners?

According to the author of "Health Economic and Finances" the author Getzen, 2013, who pays for the cost of medical care increases: employers, employees, government or insurance companies? Why should we care (Chapter 5)?

Respond to the following in a minimum of 100 words:

Discuss one of the market models and provide an example of a real-world market that matches the market model you chose. What does economic theory teach you about the industry you chose?

Y = C + I + G + NX

Y = 18,500; G = 4,000; T = 2,000

C = 750 + 3/4 (Y - T)

I = 1,000 - 50r

CF = 750 - 25r

NX = 1,825 - 150ϵϵ

(a) In this economy solve for consumption, private and public saving, national saving, investment, the trade balance, the net capital outflow (net foreign investment), the real interest rate and the real exchange rate.

(b) The demand of funds for foreign direct investment is in reality a function of the domestic real interest rate, r, and the world real interest rate, r*, given by: CF = 750 - 50r + 25r*. Confirm that if r = r* at the real interest rate you found in (a) you get the same solution as in (a).

(c) The world interest rate increases to r* = 10. Solve for consumption, private and public saving, national saving, investment, the trade balance, the net capital outflow (net foreign investment), the domestic real interest rate, and the real exchange rate. (Hint: To solve you need CF as a function of only r, so use the value of r* in the CF function to leave it like that and solve the model.)

(d) What can you concur that happens in a large open economy in the long run if the world interest rate increases relative to the domestic real interest rate with respect to what you've found in part (c)?

Suppose that you are given the following information. Answer the following question:

1. What is the total population? ( show your work)

2. How many people are unemployed, and what is the unemployment rate?

3. what is the labor force participation rate?

During the financial crisis of 2008 the Federal Reserve bought mortgage backed securities. Why did they do this? Were the mortgage backed securities successful or not?

a) Using appropriate diagrams, explain foreign exchange operation, open market operation and sterilization under Portfolio Balance Model.

b) In view of the Walras's law, if n-1 markets are already specified. the specification of bond market would have been superfluous. Explain bond market equilibrium using IS-LM.bb model.

c) What is Walras Law? Explain using appropriate equations.

d) Explain what is meant by exchange rate overshooting/undershooting.

Suppose an oil-importing economy is in long-run equilibrium. Organization of petroleum exporting countries decides to reduce oil production causing oil price to soar.

b. To stabilize price in short-run, should Central bank decrease discount rate?

c. If policymakers do nothing, please show the new long run equilibrium. What causes the economy to move from short run to long run equilibrium?

Please answer both if possible, thank you so much.