ECO320Y5- Final Exam Guide - Comprehensive Notes for the exam ( 44 pages long!)

223 views44 pages
29 Mar 2018

Document Summary

For a profit- maximizing firm, the answer depends upon three costs: First, the cost of making the product safer, which depends on its design and manufacture; second, the manufacturer"s legal liability for injuries to consumers; and third, the extent to which injuries discourage consumers from buying the product. The logic of maximizing the comprehensive measure (efficiency) is very similar to the logic of maximizing one of its components (profits). Second, we predict the consequences of variations in that implicit price. Finally, we evaluate the effects in terms of efficiency and, where possible, distribution: example 1: white collar crimes, the commission decides that a monetary fine is the appropriate punishment for these offenses, not imprisonment. The commission wants to know, how high should the fine be? : the commission focused on rational crimes that seldom occur unless the expected gain to the criminal exceeds the expected cost.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related textbook solutions

Related Documents

Related Questions