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You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the regulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that based on current tax rates, the monthly market demand for telecommunication services is given by Qd=250 -5P and the market supplying (including taxes) is Qs=4P-110(both in millions) where P is the monthly price of telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function reform that would dramatically cut tax rates, leading, to a supply function under the new tax policy of Q^s= 4.171P -110. How much money would a typical consumer save each month as a result of the proposed legislation?
In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5 percent and a tax-exempt municipal bond paying 6.12 percent,
At level of inflation explain how long does it take for the price level to double.
If I have to lay-off 19 employees as the company is upside down -$1878.00 after total cost. So, by cutting staff of 19 with a salary of $100 per day, an eight hr day, how much will I save.
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.
Elucidate what determines the rate of inflation when the economy is at long-run equilibrium.
A monopolist has a constant marginal and average cost of $10 and faces a demand curve of Q D = 1000 - 10P. Compute the monopolist's profit-maximizing quantity, price, and profit.
A recent McKinsey report concluded that 'If a price war occurs in a specific market-Critically examine this statement.
United States has absolute advantage over many countries in production of most goods and services. Yet, the country is running the record trade deficit year after year. The current trade deficit is about six percent of the country's GDP. Is it a ..
Elucidate how does the fiscal policy impact your organization or a selected organization with which you are familiar. Provide two scenarios to show the impact.
Consider a purely probabilistic game that you have the opportunity to play. Each time you play there are n potential known outcomes x1, x2, ..., xn (each of which is a specified gain or loss of dollars according to whether xi is positive or negati..
It is impossible to select as BMW's and laser printers are fundamentally different goods with different purposes.
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