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Increases in the tax rate on income will always increase the tax revenue generated by an income tax.[Hint: Think about the tax rate effects incentives for income generation.]
Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $125,000 from selling the bulbs directly to final customers.
What number of drivers appears to be most efficient in terms of output per driver and what number of drivers appears to minimize the marginal cost of transportation assuming that all drivers are paid the same salary?
Suppose that in the Akerlof example, there are only eight cars ranging in quality from 1/4 to 2 (there is no complete lemon). Hence, the mean quality level is 1.125. Determine whether the market disappears completely, and if not, how many cars will b..
often when a couple decides to marry one party gives the other an engagement ring. if the engagement is called off
Julio receives utility from consuming food (F) and clothing (C) as given by the utility function u(F,C) = FC In addition, the price of food is $2 per unit, the price of clothing is $10 per unit, and Julio"s weekly income is $50.
lever brothers has a debt ratio debt to assets of 40. management is wondering if its current capital structure is too
Why are theories not cent per cent correct whether in economics, chemistry, or physics? Why is it more so in economics?
An investment is supposed to be a hedge against in?ation if its price and/or rate of return at least keeps pace with in?ation. To test this hypothesis, suppose you decide to ?t the following model, assuming the scatterplot in a suggests that this ..
Suppose Bob has a utility function u(x,y) = LN(x) + (y/4) Suppose the price of x is px = $2, the price of y is py = $1, and Bob's income is m = $8. a. Show that the marginal rate of substitution as a function of x & y is 4/x. b. Set the MRS equal to ..
a monopolists demand curve is p 400 - 2 q. his marginal costs are represented by mcm acm 40. solve for the
Your firm produces two products, Q1 and Q2. An economic consulting firm has estimated your cost function to be C (Q1, Q2) = 100 + Q1Q2 + (Q1)^2 + (Q2)^2. Are there economies of scope?
An asset is to be used in a project that will last 5 years. The MACRS property class for this asset is 3 years. If B = l0, 000 and S=3,000 at the end of year 5, determine the depreciation schedule.
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