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Contrast the effects of taxing capital income at the rate τ in the Solow growth model and the neoclassical growth model. Show that capital income taxes have no effect in the former, while they depress the effective capital-labor ratio in the latter. Explain why there is such a difference.
Refer to the above data. If the product price is $75 at its optimal output, exactly how many units should be produced to maximize profits or minimize losses? How much will the profit or loss be?
A firm is the only seller of the same good in two markets, market 1 and market 2. The inverse demand in market 1 is p1 = 200 ? q1, and the inverse demand in market 2 is p2 = 100 ? 2q2. The marginal cost of production is constant and equal to 40. t..
Be sure to provide support for your answer, including at least one example of how the principle is currently reflected in U.S. society.
How do you determine the marginal benefit and marginal cost of the decision? You should illustrate your answer with a numerical example. Why do economists believe that managers should use marginal analysis to make optimal business decisions?
a monopolist has marginal costs MC(Q)=2Q where Q is the total output (thus MC should be rewritten MC(q)=2(q1 + q2). The monopolis can sell the output on two seperate markets, which are protected from resale of goods.
Use this modified diagram to examine the effects of temporary and permanent changes in monetary and fiscal policy.
An investment of $5000 in Biotech common stock proved to be very profitable. At the end of 3 years the stock was sold for $25000. What was the rate of return on the investment
suppose the own price elasticity of market demand for retail gasoline is -0.8 the rothschild index is 0.7 and a typical
The government collects $7 in taxes and spends $10 on locally-made goods. Firms borrow $7 and make $7 in domestic investment spending. The government and firms buy no imports what is Germany's current account balance
Stock prices subsequently decreased. Discuss how this might have affected consumption.
Assume that there are no transactions or carrying costs. Should you buy or sell wheat futures? If each wheat futures contract is for 5,000 bushels, how many contracts will you buy or sell? How much will you spend or receive in buying or selling th..
Calculate the effects on the government's objective of a tariff of 5 per unit.
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