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A corporation bought a machine for $100,000 four years ago. It was being depreciated on a straight-line basis over five years. The company decides to replace this machine today with a more productive machine that costs $125,000. The old machine can be sold today for $25,000. The income tax rate is 40%. The net initial investment in the new machine is
$125,000$100,000$105,000$102,000
Suppose you're an economic advisor in charge of trying to raise a maximum level of tax revenue for the government. You consider taxing the suppliers in the market for corn, a major agricultural product in the United States.
Suppose that the income effect of the tax induced price change is negligible, the excess burden of the tax will be.
Most nation are interdependent where trade is concern. We all depend on each other. Should America aim to be self sufficient in the production of goods and services, rather than depending on other countries for trade.
Illustrate the steps comprised in pricing the television units in order to maximize total revenue.
Government imposes excise taxes on goods which have inelastic demand, such a cigarettes.
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
Illustrate what the pricing and non pricing strategies that firms rely on to compete in monopolistic competition and oligopoly market models.
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
Heer Enterprises requires someone to supply it with 198,000 cartons of machine screws per year to support its manufacturing needs over the next 6 years.
Assume you are a financial advisor to an investor whose portfolio consists of 400 shares of Delta Cruise Inc. stock and 10 put options on the same stock.
Now assume that an unusual shift of the Gulf Stream leads to an unseasonably cold summer in Europe, destroying much of the grape harvest there.
Would your answer change if you thought different German also Japanese policies may facilitate different US policies.
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