The cost-effective solution is:
Suppose the combined abatement for two firms, firm X and firm Y, facing the New Source Performance Standards (NSPS) must total 30 units, and that the MAC functions for these firms are: MACX = 0.6AX MACY = 0.3AY
Use this information for either of the next two questions below.
a. Ax = 15; Ay = 15 c. Ax = 10; Ay = 20
b. Ax = 9; Ay = 4.5 d. none of the above
c. Ax = 10; Ay = 20
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Would you expect the cross-price elasticity of demand between ham and turkey to be positive or negative? Why?
What will be an ideal response?
According to the classical model, changes in aggregate demand are driven by
a. changes in taxes. b. changes in borrowing and lending. c. changes in fiscal policy. d. demand curve to the left and increases the price level.