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Question: Suppose that the substitution effect of an increase in the wage is always larger than the income effect. Suppose the economy is on the high tax side of the Laffer curve. Now suddenly the country goes to a war and government needs to raise tax revenue to finance the war. What should the government do with tax rate?
You are a manager for a firm in an industry where prices have been flat for the past several years. The rate of inflation now rises from 2% to 4%.
Calculate the firm's profit if it is a single-price monopoly. Calculate the firm's profit if it is a perfect price discrimination monopolist. Calculate the firm's profit if it price discriminates as follows.
What are the most important functions of descriptive statistics and What is the most important function of inferential statistics?
The New War over Wal-Mart Today, Wal-Mart employs more people-1.7 million- than any other private employer in the world.
Where P is the product price and Q is the output level A. Given we have a monopoly due to a patent, determine the profit maximizing output level, the monopoly price, and economic profits. Solve and show graphically.
Electricity is often generated using coal fired plants. Unfortunately, coal burning produces SO2, which causes acid rain. Consider two countries that border each other to answer the following question. Country A's SO2 emissions are known to negativel..
company a is a producer of widgets in a monopolistically competitive market structure. it is projected that as more
The Delp Computer Company has developed a new line of desktop computers. It is estimated that cash return generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that(the cash ..
The following link should take you to an article by Krugman that appeared in The New York Times on September 6. 2009. He contrasts the stark differences between the salt water and fresh water camps of macroeconomists. What does he find to be the k..
In each of the following cases, explain whether you think the situation is efficient or not. If it is not efficient, why not? What actions would make the situation efficient?
consider eleanor a barnard junior who purchases soda s and tennis balls t.a.nbsp assume that the following bundles are
A government researcher examines the factors that influence a city's crime rate. For 41 cities, she collects the crime rate (crimes per 100,000 residents), the poverty rate (in %), the median income (in $1,000s), the percent of residents younger than..
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