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Which of the following explains why a two part tariff causes customers who purchase few units to pay more per unit than customers who buy more units? a. customers who purchase few units pay a larger per unit price than those customers who buy more units b. the average lump sum fee is constant while the average per unit price decreases as the quantity purchased increases c. the average per unit price is constant while the average lump sum fee decreases as the quantity purchased increases d. customers who purchase few units pay a larger lump sum fee than those customers who buy more units
Draw appropriate marginal income curve. Show range over which a marginal cost curve could rise or fall without affecting cost industry charges.
Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.9 million. The marketing department predicts that sales related to the project will be $2.6 million per year for the n..
The company ises MACRS depreciation and its marginal tax rate is life of 5 years). The 10 cars were sold at the ending a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.
(a) Recommend some U.S. fiscal policy change in business taxes or government spending that would reduce the U.S. government’s budget deficit and also help improve the U.S. economy? Explain. (b) Would reducing the federal budget deficit also reduce th..
Why might it be hypothesized that a typical developed country is likely to have a greater relative amount of intra-industry trade than is a typical developing country? Explain.
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the other hand, leasing required an annual..
What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.
Identify two of the beneficiaries of the secondary markets (of the multi-sided network effects) for Windows OS. And identify the nature of the value(s) of the network effect?
Holding supply constant, an increase in demand will
Imagine a waste processing plant that is causing air pollution (measured in tons per year), and has marginal abatement costs given by MAC1 = 100 – 0.005E1. The marginal damages from the pollution is given by MD = 0.003E. The polluter has the opportun..
Suppose a wage increase from $11 to $13 an hour increases the number of job applicants from 42 to 56. What is the price elasticity of labor supply?
elling price of another product Y in dollars per unit. The inverse delivery curve. Conclude whether X also Y are substitutes or complements.
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