A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the

The figure above shows the market for steel, the production of which creates pollution

a. What point represents the equilibrium price and what point represents the equilibrium quantity in an unregulated, competitive market? b. What area represents the deadweight loss of the unregulated, competitive market outcome? c. What point represents the efficient quantity? d. If the output level in part (c) was achieved through the use of a government imposed tax, what price would consumers pay? What price would the producers receive? What distance represents the amount of the tax? e. If government successfully uses marketable permits to eliminate the external cost, what point represents how much output would be produced?

Short selling is the practice of borrowing stock then selling it with the expectation that its price will fall further so that it can be repurchased and the stock returned to the lender

The difference in the price sold initially and the price that it was subsequently purchased represents profits for short sellers. Discuss the risks taken by such individuals. What kind of risk profile do short sellers exhibit.