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Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output.
a. How does this tax affect the firm's fixed, marginal, and average costs?
b. Now suppose the firm is charged a tax that is proportional to the number of items it produces. Again, how does this tax affect the firm's fixed, marginal, and average costs?
Which of the following items are included in the calculation of GNP in the UK, and which are excluded?
Explain, illustrating with graphs as necessary-be sure that the shape of your supply and demand curves make economic sense.
The requirement is:- term paper on International Business from economic view point. The topic is effect of corruption on Chinese and Indian economy and how India's IT sector.
What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)?
In the country A, all wage contracts are indexed to inflation. That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level. Explain answer with aggregate supply and aggregate demand curves.
How would each of the following affect the firm's marginal, average, and average variable cost curves?
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Suppose an economy only produces single consumption well. Consider permanent upward shift of production function. Graphically describe the effects on each of following:
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.
If your payroll (budget) is increased to $120,000, what should you do to maximize the number of customers served?
Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?
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