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CONSIDER THE FOLLOWING:
1) Suppose the government imposes new regulations that force tire manufacturers to incur some one-time expenses for factory safety improvements. Will the new regulations raise the price of tires?
2) Suppose the government imposes new regulations that force tire manufacturers to adopt cleaner production methods that raise the production cost by $10 per tire. WILL THE NEW REGULATIONS RAISE THE PRICE OF TIRES CAREFULLY EXPLAIN WHY OR WHY NOT?
If the industry is regulated in a way that requires it to set P = AC, how much will be sold and what will the price be c) If the industry is regulated in a way that requires it to set P = MC, how much will be sold and what will the price be
Consider an economy in which the marginal labor MPN is MPN= 309-2N, where N is the amount of labour used. The amount of labor supplied, NS, is given by NS=22+12w+2T, where w is the real wage and T is a lump-sump tax levied on individuals.
Suppose you make $500monthly deposits into a tax-deferred retirement plan that pays interest at a rate of 10% per year compound quarterly. Suppose that money deposited during a quarter will not earn any interest. What is the balance at the end of ..
Gov. Expend. Tax rev. 170 90 450 170 110 550 170 130 650 170 150 750 170 170 850 Refer to the accompanying table for Waxwania. a. What is the marginal tax rate in Waxwania percent The average tax rate
julie has preferences for food, f, and clothing, c described by a utility function u(f,c)+f*c. her marginal utilities are Muf=c and Muc=f. suppose that food cost $1 a unit and that clothing costs $2 a unit. julie has $12 to spend on food and cloth..
suppose that a researcher discovers that a measure of the total amount of debt in the U.S economy over the past 20 years was a better predictor of inflation and the business cycle than M1 or M2. does this discovery mean that we should define money..
Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel. How are the laws of supply and demand illustrated in this graph Explain your answers. What is the equilibrium price and quantity in this market As..
Using the following demand schedule, compute marginal and average revenue: Quantity 1 2 3 4 5 6 7 8 Price 100 95 88 80 70 55 40 22 Suppose the marginal cost of producing the good above is constant $10 per unit.
Suppose that the market price for a bottle of vitamins is $2.50 and that at that price the total market quantity demanded is 75,000,000 bottles. Suppose that, instead, the market quantity demanded at a price of $2.50 is only 75,000. How many firms ..
Suppose you make 30 annual investments in a fund that pays 5 percent compounded annually. If your first deposit is $7500 and each successive deposit is 5 percent greater than the preceeding deposit, how much will be in the fund immediately after t..
A sum of $25,000 is deposited into a savings account, which pays 8% interest compounded semiannually. Equal annual withdrawals are to be made from the account, beginning 1 year from now and continuing forever.
Given the following variables in the open economy aggregate expenditure model, autonomous consumption (C o) = 200, autonomous investment (I o) = 200, government spending (G o) = 100, export spending (X o) = 100, autonomous import spending (M o) = ..
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