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You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 250 - 5P and the market supply (including taxes) is QS = 4P - 110 (both in millions), where P is the monthly price of the telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 4.171P - 110. How much money per unit would a typical consumer save each month as a result of the proposed legislation? Instruction: Round your answer to the nearest penny (2 decimal places). $
When the_____ supply curve shifts outward or inward with an unchanged _____ curve, equilibrium price and quantity increase or? decrease, respectively. When the___ curve shifts outward or inward given an unchanged____ curve, equilibrium price moves in..
Now that have discovered how to calculate fixed costs, variable costs, marginal costs, total costs, average fixed costs, average variable costs, and average total costs, how does one calculate breakdown and shut down?
Forte Bend County is planning to construct a Dam some tens of miles away from the Grand Mission Recreation center to facilitate fishing in the El Rehobatha River Basin. In addition a major overhaul costing $650,000 will be required at the end of the ..
A man is planning to retire in 20 years. money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount end of month deposit must be made each mont..
A state government has the option of damming a major river to generate energy and divert water to local agriculture. The cost of constructing the dam and associated infrastructure is 100 million. What is the present value of the returns to building t..
Evaluate the Keynesian economists, besides John Maynard Keynes. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.
If Starbucks introduces the world to premium blends, and demand rises substantially, illustrate what will happen in this market as it moves to a new equilibrium.
Identify an organization with which you are familiar. What are some factors in this organization that might affect the strategies they take in developing their socially responsible efforts? What are some of these efforts?
When we stick to a utilitarian basis for redistribution of wealth, it fails analytically because
So as to procure the objectives of the General Education program, every understudy is required to compose a research paper. Understudies will pick one issue from the universe of games to investigate. The accompanying rules are to be taken after whe..
Explain the types of incentives for providers for efficiency in the delivery of healthcare services.
Suppose you estimate the following cost equation: AVC = 4832 – 0.5(Q) + 0.00007(Q)2 At what quantity is AVC minimized Suppose this firm sells 3500 units per month at a price of $4000.00 each and has fixed costs of $10,000 per month. What is the firm’..
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