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You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes can amount to as such as 25 percent of a consumers phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that deregulation of the telecom industry led to a highly competitive market. Your best estimates indicate that, based on the current tax rates, the monthly market demand for telecom services is given by Qd = 250 5P and the market supply, including taxes is Qs = 4P 110 (both in millions), where P is monthly price of telecom services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy Qs = 4.171P 110. How much money would a typical consumer save each month as a result of the proposed legislation
Simplify depreciation to be calculated as straight line over 30 years. It will be financed with a 30 year loan at 8% interest compounded annually with annual payments. It will be sold at the end of year 15 for $300,000, at whi..
Barry, a Texas Crude Company engineer who did not take Engineering Economy while studying at Tech, recommended that Texas Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a result of Barry'..
Hook, Inc., is an international manufacturer of bulk antibiotics for the animal feed market. Dr. Mike Jones, head of marketing and research, seeks your advice on an appropriate pricing strategy for Pharmed Caplets, an antibiotic for sale to the ve..
Each society in the nation is suddenly responsible for designing its own local commodity based financial system, and you have been assigned the task of selecting what commodity your society will use and how it will be implemented.
quantity price/dollars total revenue total variable costs dollars total cost dollars 0 22 0 0 50 20 20 16 66 2 19 38 3 18 54 45 95 4 17 68 59 109 5 16 80 75 125 6 15 90 93 143 7 14 98 112 162 8 13 104 140 190 9 12 108 180 230 10 11 110 230 280
Which of the following is not a reason for rising health care costs? Which of the following statements about the way the government measures poverty is correct? Which of the following are explanations for income differences?
In this question we are going to incorporates investment in human capital by agents, in a form similar to physical capital. Labor units are replaced by human capital units Y = AK?(?H)1?? where • H ? Units of Human Capital • ? ? [0, 1] ? Fraction of..
Urea is used as a fertilizer in cultivation of agricultural products. In Pakistan there are very few industrial plants for the production of urea. Energy shortage has badly affected the production of these industrial plants. This situation has inc..
There is a big gap in the earnings of married women and married men, even if individuals of both sex have the same level of education.
Use the rule for determining optimal purchases to decide how many hours you should study each subject. Treat each point on an exam as 1 unit of utility and assume that you consider an extra point on an economics exam to have the same value as an e..
what amount will be required to purchase, on an engineer's 40th birthday, annuity to provide him with 30 equal semiannual payments 0f $1000 each, the first to be received on his 50th birthday, if the nominal interest is 4% compounded semiannually
It is well documented that carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that damages are expected to be less severe in summer months than in winter. Nonetheless, air quality control authorities..
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