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Assume that 10 percent of the population will always evade paying taxes no matter what anyone else does. Equally 10 percent of the population will never evade paying taxes. The remaining 80 percent are more likely to evade when the proportion evading increases. Prove that there will be at least one equilibrium level of tax evasion. Show how multiple equilibria can occur. Which equilibria are stable?
Which of these is likely to be your best bid?
is where one player maximizes his payoff and the other doesn't.
Manke a graph showing the relationship between two variables, X and Y . Determine whether the relationship is negative or positive
Consider a linear city Hotelling model. There are two firms, A and B, located at the (30) ends of the product space. The length of the product space is 3 and transportation costs are 1 times the distance traveled.
Explain how the exchange rate acts as an automatic stabilizer in an economy with flexible exchange rates.
Suppose that the price elasticity for hip replacement surgeries is 0.2. Further suppose that hip replacement surgeries are originally not covered by health insurance and that at a price of $50,000 each, 10,000 such surgeries are demanded each year..
Suppose that your retirement benefits during your first year of retirement are $70,000 per year which is just enough to meet your cost of living during the first year. However, your cost of living is expected to increase at an annual rate of 6% du..
What would be the value of the multiplier derived from a naïve regression of consumption on income, and what would be the true value?
Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price
Tiffany Baking Co. wants to arrange a $50 million in capital for manufacturing a new consumer product. The current financing plan is 60% equity capital and 40% debt capital. Compute the WACC for the following financing scenario.
High switching costs may lead to less innovation in network monopolies.
Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.
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