Impose an excise tax on mcdonalds or gasoline

Assignment Help Finance Basics
Reference no: EM132548904

If the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline? Why? Make sure to include a graph and the equation for elasticity and your assumptions regarding the elasticity of demand for both products.

Reference no: EM132548904

Questions Cloud

What are the 4 types of market failure : What are the 4 types of market failure? Explain each and give an example of each
Difference between absolute and comparative advantage : What is the difference between an absolute and comparative advantage? Give an example.
Find amount of direct materials backflushed from fgi to cogs : Find Amount of direct materials backflushed from FGI to COGS? Amount of conversion costs included in COGS for the month of May
How much will the company net income increase : Assume that sales increase by Br. 400,000 next year. If cost behavior patterns remain unchanged, by how much will the company's net income increase?
Impose an excise tax on mcdonalds or gasoline : If the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline?
Relationship between price elasticity of demand : Describe the relationship between price elasticity of demand, total revenue and marginal revenue?
Discussion-welfare and public assistance myths : The world of welfare is replete with urban legends. My favorite goes something like this: "I was standing in line at the grocery store
Estimated cash to be received mainly from debtors for cash : Estimated cash to be received mainly from debtors for cash sales and collections for credit sales during a month. How will the information assist in cash
Determine the prices which prevail for most goods : Question One: forces of supply and demand determine the prices which prevail for most goods and services.

Reviews

Write a Review

Finance Basics Questions & Answers

  How many units should the firm produce

How many units should the firm produce during the first six months of the year?

  Determine what a pay policy line is

A line manager in your company heard that the backbone of your company's pay structure is something called a pay policy line (also called a market pay line).

  At what value of annual cash flow would beverly enterprises

Beverly Enterprises owns a nursing home that is currently earning $2 million in cash flow on an annual basis, but this amount is expected to drop in the future.

  How much would you have exactly 5 years

How much would you have exactly 5 years from now if you deposit $100 today, $200 at the end of this year and another $200 2 years

  What is its role in systems design and analysis

What is the basic objective in a logistics design and analysis study? Is it normally a one-time activity? 2. What is sensitivity analysis, and what is its role in systems design and analysis?

  Portfolio theory and capital asset pricing model

Johnson Paint stock has an expected return of 19% with a beta of 1.7What is the expected return on the market? What is the risk-free rate?

  What is the break-even level of earnings before interest

What is the break-even level of earnings before interest and taxes between these two capital structure options?

  Capital to finance its investment projects

What are major considerations when a firm considers using debt or equity capital to finance its investment projects?

  Make portfolio with an expected return

If your goal is to make portfolio with an expected return of 11.1 percent, how much money will you invest in Stock X?

  What factors shift the short-run aggregate supply curve

Use the equation Y = YP + a(P - Pe ) to explain why in the new classical view, the short-run aggregate supply curve is positively sloped and the long-run aggregate supply curve is vertical.

  Practical and convenient ways to look at stock valuation

Discuss why growth rate models are practical and convenient ways to look at stock valuation? Explanation must be included with formula of growth rate?

  Forecasts the purchases from suppliers

Dynamic Futon forecasts the following purchases from suppliers:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd