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You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 250 - 5P and the market supply (including taxes) is QS = 4P - 110 (both in millions), where P is the monthly price of the telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 4.171P - 110. How much money per unit would a typical consumer save each month as a result of the proposed legislation? Instruction: Round your answer to the nearest penny (2 decimal places). $
Suppose you make an annual contribution of $100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. Wh..
Present a one-factor Ricardian model of two countries, A and B, trading two goods, X and Y, and discuss the gains of trade generated in this model.
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..
a rolls-royce case studyintroduction no business today operates in a complete vacuum unaffected by market forces. by
Distinguish sampling error from non sampling error. What is a measure of central tendency and what does it describe? How does parameter estimation for a mean differ from that for a percentage?
The purchase of treasury securities by the Federal Reserve will, in general
You have a gross income of $12029 in 2014. You filing status is single. You do not itemize deductions and you are allowed 1 exemption. What is your federal tax bill, assuming no phaseout of personal exemptions based on income?
On hearing that you are undertaking a subject in accounting as a part of your degree you are approached by a friend, Michael Graham, to give him advice regarding the potential purchase of a business.
To be successful leaders in the global business world of the 21st century, managers must consider economic trends, behavior, and ramifications of economic decisions. Describe how economic theories and principles help you think about economic behavior..
Apple and Samsung are competing in a duopoly. If both companies charge a high price, they each earn $900 million in economic profit. If both companies charge a low price, they each earn $500 million in economic profit. Construct a payoff matrix displ..
Assume which an innovation reduces a industry's fixed costs also reduces cost from ATC to ATC. Before the innovation reduced the cost, the industry's maximum economic profit was
For the following cash flow, compute the interest rate at which the $240 cost is equivalent to the subsequent benefits.
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