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Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $7 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $8 per case (including the tax), and producers receive $5 per case.
The amount of the tax on a case of cola is $____________per case. Of this amount, the burden that falls on consumers is $__________per case, and the burden that falls on producers is $_________per case.
Suppose that a corporate bond with a Baa credit rating and five years to maturity has a yield to maturity of 8 percent. Suppose that the government of the city of Udwellum, which has a Baa credit rating , issues a bond with the same time to maturi..
Compute the marginal product of labor when 9 units of labor are utilized. Assume the firm can hire labor at a wage of $10/hr and output can be sold at a price of $100 per unit. Determine the profit maximizing levels of labor and output.
Critically evaluate the issue in terms of its effects upon businesses, consumers or a particular firm, including how the affected parties have responded, or plan to respond.
suppose your firm produces electricity by burning coal. currently it buys central appalachia 12500 btu per ton coal at
If rice can be produced using water and seed according to Q = WS, where water, W, costs $3 and seed, S, costs $3, what is the cost minimizing combination of water and seed capable of producing 144 units of rice?
Proponents of trade liberalization argue that freer trade might actually improve the quality of the environment
spreadsheet 2. an individual is considering two investment projects. project a will return a zero profit if conditions
Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?
What will be the deadweight loss created by this monopoly?
The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt mostly credit cards and auto loans but maintained the deductibility of interest payments on mortgages and home equity loans.
you can either take a bus or drive your car to work. a bus pass costs 5 per week whereas driving your car to work costs
select a major course concept that was discussed during our semester and explain how you would apply it to solve a
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