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How do i find the original producer surplus? The imposition of a $1.50/unit excise tax on a competitive market raises the price buyers pay (inclusive of the tax) by $0.60/unit and reduces the volume of trade in the market from 2000 units/day to 1600 units/day. Assuming that the demand and supply curves are straight lines, the tax reduces producer surplus by how much?
using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a reduction in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibrium.
Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. What is Slurpin..
Gert communication, inc. purchased new equipment for $200000.gert communication, inc. paid $50000 for the equipment in cash and took financing for 3 years at 15% annual interest. What amount Gert communication, inc. should pay in every installment fo..
The market where business sell goods and services to households and the government is called
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the problem o..
Compute and plot yield spread (difference between yields to maturity of console and one-period bond). Is yield spread pro-cyclical or counter-cyclical.
Suppose the Demand for baseballs is given by Q = 240 – 8P. What is the price elasticity of demand when P = 6? At what price will Total Revenue be maximized?
The firm must pay a fi xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate what is the smallest integer price that would make a firm willing to produce a positive amount.
q.suppose you consume nothing but goods x and y. we have two years? of data regarding your consumption and incomeyear
Value added is the
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
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