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During the spring and summer of 2008 when gasoline prices were rising quickly, politicians in several countries proposed a moratorium on some or all gasoline taxes to help consumers. In the United States, John McCain, the Republican candidate for president, proposed suspending the federal gasoline tax of 18.4¢ for the summer when demand tends to be high. (Hillary Clinton, while an active candidate for the Democratic nomination for the president, also pushed this plan.)
In the United Kingdom, Prime Minister Gordon Brown proposed delaying a two pence per liter rise in a fuel tax until the fall. How would these short- run policies have affected the prices consumers pay in these countries if the policies had been enacted?
Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?
1. in 2010 the box industry was perfectly competitive. the lowest point on the long-run average cost curve of each of
2) Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses a 5% interest rate for project evaluation. It is eco..
uppose that some firms in a competitive industry are earning zero economic profits, while others are experiencing losses. In the long run, we would expect the number of firms in the industry to.
Determine if the demand for the following products is price elastic or price inelastic, or explian how the necessity of a good and the availability of substitutes affect the price elasticity of demand.
Derive the average cost of producing 100,000, 200,000, 300,000, and 400,000 devices per year with plant A. (For outputs exceeding the capacity of a single plant, assume that more than one plant of this type is built.)
Which of the following is an example of a change in the quantity demanded? (Hint. For which items is there a direct change in price that leads to a change in quantity demanded) Markets are more efficient when information is perfect;
The marginal cost of making a wedding cake is $200. In order to maximize profits, Laura should make more than 20 wedding cakes per month. make fewer than 20 wedding cakes per month.
What is the implied price of holding money in a checking account rather than in Treasury bonds?
Suppose the information in the following table is for a simple economy that produces only the following four goods and services: textbooks, hamburgers, shirts, and cotton. Assume that all the cotton is used in the process of producion.what is the ..
Using quarterly data, calculate the coefficient of variation of detrended personal disposable income, consumption, consumtion of durables, and consumption of nondurables plus services. Comment on the relative variability of these series.
Which input bundle represents efficient production of 100 units of output if the rental paid to capital is $25 and the wage paid to labor is $50? Round any decimals to the nearest hundredth. Derive the firm's cost function using the rental and wa..
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