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Upon graduation, you accept a job with a software development firm. The job will pay you $60,000. First, use the marginal income tax rates in Table 17.1 to compute your federal income tax owed. Now assume that the United States moves to a flat tax system instead of a progressive system. With a flat tax, everyone pays the same percentage of income in taxes. If the flat tax rate were levied at 20%, which system would you prefer? At what rate would you be indifferent between the systems? (That is, at what rate would you have no preference for one system or the other?)
The incumbent does know its unit cost. Market demand is common knowledge to both firms. The entrant, however, does get to observe the current or pre-entry market price at which the incumbent sells its good.
A rich graduates of engineering program at your University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely.
Marginal Revenue of a Monopolist a. Prove mathematically that marginal revenue is always less than price, P(Q). b. Explain this intuitively as well.You may use a graph to help you. Remember marginal revenue is the money the firm takes in after sell..
For an NMOS device, plot ID as a function of VGS for different values of VDS .
You have just received a proposal from the marketing department that your firm's advertising budget should be increased by 20% from its current level of $250,000. The marketing department feels the proposed increase will stimulate sales and enhanc..
In the Dixit-Stiglitz model in Section 12.4.1, determine the conditions on the function u(., .) in (12.7) such that an increase in N raises the profits of a monopolist.
Grain prices go the way of the oil price Rising grain prices have started to impact the price of breakfast for millions of Americans-cereal prices are rising.
How would you evaluate these two contrasting views, and what are their implications for society?
These fishing methods are illegal for U.S. tuna fishers. Is this trade restriction efficient? Is it equitable?
Irvine Aerospace of Santa Ana, California, was awarded a 5 year contract to develop an advanced space capsule airbag landing attenuation system for NASA's Langley research Center. The company's computer system uses fluid structure interaction mode..
Show that there are no transitional dynamics, so that starting with any N(0) > 0, the economy grows at a constant rate.
If this trend continues linearly, in what year will the total debt ?rst exceed $4000 billion?
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