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The price of gasoline in Europe is much higher than in the United States, and the reason is that the gas tax is much higher in Europe than in the United States.
a. What type of externalities arise from driving automobiles fueled by gasoline?
b. Given what you have learned about externalities and taxation, what is the case for increasing the gas tax in the United States to the European level?
c. Given what you have learned about externalities and taxation, what is the case against increasing the gas tax in the United States to the European level?
d. What is your view on whether the United States should raise the gas tax to the European level and why?
Explain why the relationship between the prices charged to locals versus the prices charged to out of town visitors? Why does this happen?
The effective capacity and efficiency for next quarter at MMU Mfg. in Waco, Texas, for each of three departments are given below. Compute the expected production for next quarter for each department.
Consider the price-taking firm in competitive industry for raw chocolate. The market demand and supply functions for raw chocolate are estimated to be
Industry structure is often measured through calculating the Four-Firm Concentration Ratio. Assume you've an industry with 20 firms and the CR is 30%. How would you describe this industry?
Assume you run a pizza store and currently have two workers. If you hire a third worker, your output of pizzas per day rises from 55 to 65.
Analyze how production and cost functions in the short run and long run affect the strategy of individual firms and use technology and information resources to research issues in managerial economics and globalization.
A firm uses two plants (A and B) to produce the product. The plant's marginal cost functions are given by the following equations:
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
Calculate consumer surplus in the case of entry deterrence and in the case of entry accommodation. Which situation leads to the largest consumer surplus?
Defines the price of the imported good as the foreign market price before it is loaded into the ship, train, or plane for shipment to the importing country.
Determine how global competition impacts FORD. Should the organization/industry continue, expand, or reduce current operations in order to maximize profits? Explain your reasoning.
Forecasting collect data using techniques of estimating demand functions in an attempt to forecast sales and prices.
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