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Some health reformers have called for taxing firms to pay for workers' medical care. How is the incidence of a specific tax per worker shared between competitive firms and workers? How does your answer change if the firm is a monopsony?
The Textile Workers of America is planning to strike for higher wages. Management predicts that if the strike is successful, the cost of labor will increase to $100 per day. If the strike is successful, how would this affect the decision in part a..
the purpose of this excise is to have you confirm empirically the relationship that theoretically should occur among
a. Based on the two-period model covered in class, write down thefirms budget constraint in period t. b. Derive the firm's demand for labor in period t as a function ofwages, interest rates and a.
Twenty-six observations are used to obtain the following regression results: DEPENDENT VARIABLE: LNY R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 26 0.3647 4.21 0.0170 VARIABLE PARAMETER STANDARD ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 2.9957 0.3545 ..
The demand for most new films peaks in the first few days after opening, then tapers off. Two key factors that affect potential demand are the season (Summer and Christmas are the best times) and the timing of other releases. Suppose that both Stu..
Compare the graph you obtained with Figure 1 in Box 11-1. Did the low interest rates encourage growth?
Using the two economic indicators selected for your Housing Industry Overview Paper assignment, Compare and contrast at least two different eighteen month forecasts for each of the 2-economic indicators.
A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.
A consumer enjoys two goods, X and Y. The price of X is $5 and the price of Y is $10 and the consumer has $1500 to spend on these goods. The utility function of the consumer is U = Y √x ; thus MUx = 1/2 Y/ √x and MUy = √x . What bundle of goods wi..
Suppose advancing technology (e.g., the miniaturization of electronic circuits) increases the productivity of the 90-
Suppose that a perfectly competitive firm faces a market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.
Consider two economies with identical technologies and identical initial conditions but with different corporate tax rates, τ and τ' . Determine the relative income of these two economies (as a function of time).
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