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Suppose the government is considering the imposition of a unit tax to be levied on beer producers. The view of companies is that this is just one more cost for them to bear. Consumers disagree saying that the companies pass the taxes on to them in terms of higher prices.(a) Given that the demand for beer is inelastic, which viewpoint is correct? (b) Would the burden of the tax be any different if the government levied thetax on consumers (over the counter) rather than on beer producers?
Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
Elucidate this linkage in words also after that illustrate with a Cumulative Demand - Cumulative Supply diagram.
The expected annual net savings in operating costs will be $25,000 during the first year and $40,000 during the second year. If your interest rate is 10%, what would be the equivalent net savings per machine-hour?
Compute what happens to the quantity of K. Your answer must include the appropriate sign. Correctly round your answer to 2 decimal places. Do NOT include the percent sign as part of your answer.
Suppose that a tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interest?
Suppose that a monopoly has fixed costs of $1000 and marginal cost of $100. They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis. Plot their demand, marginal revenue, marginal cost and average..
Assume that the industry is monopolized by only one company. Write the equation of the TR curve and then plot the TR curve(with Q along the horizontal axis and TR along the vertical axis) for this company. Comment on the shape of the TR curve.
Elucidate why a currency appreciation does not improve a nation's balance of trade.
How many people should the owner hire if he pays each worker $6/hour? c. Suppose he considers hiring students on a part-time basis for $4/hour.
Compare the total costs in parts a and b. If the government does not know the cost of pollution reduction for each firm, is there still some way to reduce pollution to 50 tonnes at the total cost calculated in part a?
Illustrate what is the four industry concentration ratio of the hamburger organization in this town.
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