### Consider partial factor tax on capital used in food industry

##### Reference no: EM13736701

Imagine a world with two goods, food (F) and shelter (S), and two factors of production, labor (L) and capital (K). Assume that labor and capital can be employed in either sector of the econ omy (the food sector or the shelter sector) and that these factors are completely mobile across the two sectors. Assume that the total supply of labor and capital in this world is fixed. Finally, suppose that before any taxes are imposed, the food indust ry is labor intensive. a. Consider a partial factor tax on capital used in the food industry (t KF ). Which factor will bear more of the economic incidence of the tax? Explain your answer. b. How would your answer to (a) change if the food industry and the shelter industry had the same factor intensity (K F /L F =K S /L S )? c. How would you answer to (a) change if capital was immobile (in other words, if labor could not move across the sectors)?

#### The four assumptions that relate to game theory

Types of oligopoly that pertains to the automotive industry. The four assumptions that relate to game theory. Which types of game theory are applicable to the automotive indus

#### Derive the monopolists two-part pricing scheme

Suppose that the monthly demand for AIDS treatment is Pn = 100 − Qn in North America and Ps = 60 − Qs in Sub-Saharan Africa due to lower income. The marginal and average varia

#### Average demand for money and the velocity of your money

Assume, after you graduate, you are paid \$3,000 monthly (take home pay). Assuming you spend your entire income at a constant rate throughout the month and do not use a credit

#### Employees prefer to have employer pay for health insurance

One reason why employees prefer for their employer to pay for their health insurance rather than receive increased wages and pay for their own health insurance is that wages a

#### Price of natural gas has been going down for few years

The price of natural gas has been going down for a few years. Graphically show and then explain what has occurred and why (reason for shift)? You can make up a reason as well

#### When a single-price monopolist maximizes profits

When a single-price monopolist maximizes profits, price is greater than marginal cost. This means that buyers would be willing to pay more for additional units of output than

#### What was the effective annual interest rate

You received a check from the bank for \$18000. You know \$7000 was deposited when you turned 1. Using your current age (please state it), what was the effective annual interest

#### Market for chocolate bars

Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.