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You are the manager of a firm that receives revenues of $60,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1.2.
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
Explain how much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =9.64 %, Annual cash flow increases 29% each year, The first year value is $65 and the series is 9 yrs long.
Using the results from previous question (the equilibrium price and quantity), which of the following is true or false? Explain (10 pts., 2.5 pts. each). Equilibrium quantity decreased by 4 units.(explain)
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
Suppose that demand for a product is Q = 1000 – P and supply is Q = 9P. Furthermore, suppose that the marginal external damage of this product is $20 per unit. Suppose this is a negative production externality. Calculate the Q currently being produce..
By imposing trade restrictions on imports, the U.S. will eventually see an appreciation of the dollar that will reduce U.S. exports to other countries. and Why?
Which of the following do the GDP statistics measure least well?
A new municipal refuse collection truck can be purchased for $84,000. its expected useful life it six years. and by that time its market value will be zero Annual receipts less expenses will be approximately $18,000 per year over the six-year study p..
Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate
Assume that the newspaper can't differentiate students from teachers and can only charge a fixed price per article.
Which of the following is generally part of a formal report?
Increase carbon tax will make move of production factory to the countries with no or lower carbon taxes. So every countries should set the base carbon tax rate at the same point to avoid this problem and it will be the problem or not?
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