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1. Suppose that the market for cigarettes in a particular town has the following supply and demand curves: Qs = P and Qd = 50 -P , where the quantities are measured in thousands of units. Suppose that the town council needs to raise $300,000 in revenue and decides to do this by taxing the cigarette market. What should the excise tax be in order to raise the required amount of money?
2. When gasoline prices reached $3 per gallon, public policy makers considered cutting excise taxes by $0.30 per gallon to lower gasoline prices at the pump. In discussing the eects of the proposed tax reduction, a news commentator stated that the effect of the tax reduction should lead to a price of about $2.70 per gallon, and, that if the price did not drop by as much, it would be evidence that oil companies are conspiring to keep gasoline prices high. Evaluate the commentator's claim.
Tables John Walker is a regional sales representative for Jiffy Mowers Inc. and sells lawn mowers to stores in the Tri State area. Construct a table showing Walkers marginal sales per day in each state.
Describe supply and demand, major reason(s) for the price increases and fluctuations, and international factors, if applicable. You should use at least four references.
Suppose Corporation X deposits $80,000.00 in cash in commercial bank Y. If no excess reserves exist at the time this deposit is made and the reserve ratio is 30%,
Assume that the MPC is 0.85 and that the Government is considering to boost the economy to increase real GDP by $2 trillion for the 2008 general elections.
Make an example of a comparative advantage model by 'choosing two countries and two products.
Write down the effect on the real wage and hours worked in the short run.
Ilulustrate what incentives are needed for business to adopt new technology.
Cronwell Enterprises has total assets of $300 million. The corporation currently has no debt in its capital structure. The company's basic earning power is 15%.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
Prediction of changes in the business environment affecting strategic planning. Elucidate the relationship among strategic planning and organizational design.
Elucidate the difference among the consumption of a free good and a good that is not free.
Describe regarding the best solution for preventing someone from making illegal copies of music files.
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