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Consider the following possible schemes for taxing a monopoly:
(i) A proportional tax on profits
(ii) A tax on each unit produced
(iii) A proportional tax on the gap between price and marginal cost
(a) Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from monopoly?
(b) Graph your results for each of these taxes.
Which of the subsequent represents a positive macroeconomic statement. Assume the United States can produce Toyotas at the cost.
Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open market purchases or sales in response to each of the following events. Justify your recommendation.
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..
Do you think this pattern of trade is consistent with the principle of comparative advantage?
A committee of 4 has to be chosen from 12 representatives, of whom 8 are men and 4 are women. If selection is random what is the probability that.
Some economists believe that creeping inflation cannot be accepted because a gradual increase in prices leads to an ever-rising rate of inflation. Other economists argue that in order to achieve economic growth, some moderate price increases are nece..
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole?
Discuss and post what solution might there be for these people who lack access to computers. Recalling that the definition of perfect competition refers to a market with many buyers, among other factors, thus, how may these people gain access to the ..
The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure?
q1. calculate the range of marginal revenues on the vertical portion of the mr curves at the level of output where a
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero..
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