Suppose the welfare benefit formula

Assignment Help Business Economics

Reference no: EM13803317

Suppose the welfare benefit formula is

Benefit= $4.800-0.67 (Wages>$6,000)

(a) what is the marginal tax on

(i) The first $6,000 of wages?

(ii) Wages above $6,000?

(b) How large is the benefit if wages equal

(i) $0?

(ii) $4,000?

(iii) $9,000?

Reference no: EM13803317

Questions Cloud

What is the IRR of the new investment : ABC Company is considering a new investment that will cost 50,000 to produce a new product that the president of the company has invented. The marketing dept of the company anticipates the new cash flows from the investment will be 10,000, 12,000, 12..

Zero salvage value with the SL method : Zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $180,000 (time zero dollars) per year. It is a policy of the company that the annual revenues will be increased each year to keep pace with th..

Circular flow diagram relates to current economic situation : Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.

What is a monopolist : What is a monopolist? Is the product unique or there are no close substitutes. Discuss What type(s) of decision does the monopolist make about pricing and the quantity of output to offer in the market? Can the monopolist determine the level of output..

Suppose the welfare benefit formula : Suppose the welfare benefit formula is, How large is the benefit if wages equal. What is the breakeven level of income in this case?

Which investment has a higher rate of annual cash return : Which investment has a higher rate of annual cash return? Investment A: $1,000 bond with a coupon rate of 4 percent selling for $1,200 or Investment B: $1,000 stock with a P/E ratio of 10 that pays out half its profits in dividends.

Suppose the market price of corn : Suppose the market price of corn is $1.50 per bushel. Would a farmer sell corn to the market or the government (CCC)? How much of a countercyclical payment per bushel would the farmer receive?

How much profit does an unregulated monopolist earn : How much profit does an unregulated monopolist earn? How much profit would be earned if MC pricing were imposed?

Assumption is she making about the elasticity of demand : Suppose the current price of gasoline at the pump is $4 per gallon and that one million gallons are sold per month in Texas. A local politician proposes to add a 10-cent tax to the price of a gallon of gasoline, and she claims that the tax will gener..

User Account

All Pages