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Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market price and quantity of services be affected? How would allocative and technical efficiency be affected? Explain.
Smallville is suffering annual losses of taxable properties and property values of 1% each. Even so, Smallville must maintain its tax collections at a constant value of $3.2 million to maintain services. What is the required rate of increase in the t..
Indicate the type of sales promotion that a producer might use in each of the following situations and briefly explain your reasons: (1) A firm has developed an improved razor blade, but customers are not motivated to buy it.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Show that an increase in government spending that is productive in this fashion could increase welfare for the representative consumer.
give an example of a government created monopoly. is creating this monopoly necessarily bad public policy?explain two
Solve graphically: Show an increase in real interest rates that decreases quantity supplied of savings. (m2=0)
Some retailers must contend with excessive customer returns of purchased items. For example, a person may purchase an expensive item at a clothing store; wear it to a fancy event, then return the item. To what extent is the problem of excessive custo..
Elucidate why liberals have traditionally endorsed national authority.
Volkswagen company is Germany own company with a massive factory in Mexico. In 2013, the Volkswagen Mexican factory produced $228 worth of cars and sold $6 to the U.S., $51 to Mexico, and $10 to Germany. How much was added to Gemany's GDP?
Indicate profit- maximizing level of output. If the price was $3 and fixed costs were $5, what would vaiable cost be? At what level of output would the firm produce?
Jefferson Smurfit Company is a multibillion-dollar supplier of packaging materials. The tradesperson's action is typical of the corporation's trades philosophy
For 5 years you have owned and operated a small company, ABC Desks, that designs and manufactures high-end custom wooden desks. The business is incorporated and pays state and federal taxes separate from your personal income. Develop an Income Statem..
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