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A government notices that a natural monopoly with constant marginal cost has emerged in a particular market. The government does not know the general shape of the demand curve and is considering levying a $1 per-unit tax on the monopolist. One concerned citizen objects, claiming that the tax will result in consumers paying $1.50 more per unit. Should the government dismiss this citizen's concern as unreasonable? Does your answer change if the market is perfectly competitive? Explain.
Florida, like several other states, has passed a law prohibits" Price gouging " immediately before, during, or after the declaration of state of emergency. Price gouging is defined as"''.... selling necessary commodities such as food, gas, ice, oil a..
You are applying for a position in your chosen career (please decide the type of position based on your career goals).
Given the information below, create the fully labeled Crow's Foot ERD using a specialization hierarchy where appropriate (use Visio). The ERD must contain all primary keys, foreign keys, and main attributes. Business rules are defined as follows:
Why does the MFC curve (also known as the marginal cost of labor curve) for a monopsonist slope up from left to right? In other words, why does a monopsonist's marginal cost of labor curve (MFC) have a positive slope?
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $12 million in withdrawals from other banks’ ATM machines. What would be the f..
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. What is Abdul's impl..
Take a look at the vague questions below. For each, explain the problems with the question and find a more specific way to ask the question.
A drought in Nova Scotia reduces the apple harvest, what happens to consumer surplus in the market for apples? What happens to consumer surplus in the market for apple juice? illustrate your answers with diagrams.
Compute the competitive equilibrium price and quantity. As well, compute the total value created in the market for sporting guns. Clearly show all calculation and illustrate your answer using a well-labeled graph.
You deposit $1000 now and you want the account to have a value as close to $8870 as possible in year 20. Assume the account earns interest at 10% per year. The year in which you must make another deposit of $1000 is?
What are the three main weapons with which the Fed can control credit expansion? For each, what action does the Fed take to contract the money supply? How powerful are they in controlling interest rates, output, employment, and prices?
The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate (always, rate/yr) that you are paying.
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