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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 consumer's 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
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
measured in thousands of units and price (P) is measured in dollars per unit. The equilibrium quantity in this market it.
Discuss an industry that would meet the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.
When politicians using polling data emphasize issues to polls have given more importance than necessary they have fallen
At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3.
One organization must have high fixed costs also low variable cost also the other must have low fixed costs also high variable costs.
Evalute any one economic model of such imperfect competition, and assess how well it explains the behaviour of real firms, and the results such behaviour might have upon the efficiency of resource allocation.
Calculate the marginal cost function. What is Chill man's profit-maximizing cost as well as output combination.
Elucidate how free market features could be introduced to help improve the problem. As your answer also include a discussion of the risks of introducing market mechanisms.
What steps can Congress and state legislatures take to alleviate a serious national shortage of skilled providers. Research suggests medical errors have been linked to inadequate staffing.
Describe how each of these activities affects government, households, and businesses. Illustrate flow of capital starting from one entity to another for each activity.
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
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