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Assume that the government plans to introduce a tax cut next year. There are two groups of economists advising the administration on this issue. One group advocates business and investment tax cuts for firms and high income individuals. The other group suggests an education allowance, child care credits, and other similar tax cuts for low income and middle class families. They both argue that their plan benefits the nation and benefits the citizens better than the one offered by the other side. Take a position and state your case in support of one of the tax cut proposals.
For rice production, why might labor productivity among workers in some southeast Asian countries be lower than labor productivity in Arkansas (Note: Arkansas exports the 4th largest amount of rice in the world).
Two firms supply coffee at a market. Firm 1 has lower marginal costs than firm 2, reflected by constant marginal costs c1
Explain how the indifference curve and budget line apparatus are used to derive a consumer's demand curve.
If the Brazilian demand for American exports rises at the same time that U.S. productivity falls relative to Brazilian productivity, then, in the long run, ________, everything else held constant.
Norman Internet Service Company (NISC) is interested in selling common stock to raise capital for capacity expansion. The firm has consulted First Tulsa Company, a large underwriting firm, which believes that the stock can be sold for $50 per share.
A firm believes the sales volume (S) of its product depends on its unit selling price (P) and can be determined from the equation P = $100 - S. The cost (C) of producing the product is $1000 + l0S.
(Consumer Surplus) suppose the linear demand for shirts slopes downward and that consumers buy 500 shirts per year when the price of shirts is $30 and 1,000 shirts per year when the price is $25. compared to the prices of $30 and $25, what can you sa..
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped.
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second year, and $3,000 in the third year, and $3,000 in the fourth year. what would happen to the present value of ..
Explore in particular how the firm responds to the macroeconomic conditions in terms of the stock performance, current also future sales revenue, current also future profits, and worker costs also hiring decisions.
We've talked a bit about decision making and strategic planning in the class so far, and this discussion thread lets us focus on the qualitative and quantitative aspects involved with making decisions. Can you think of a time you had to make a major ..
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