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The price of gasoline in Europe is much higher than in the United States, and the reason is that the gas tax is much higher in Europe than in the United States.
a. What type of externalities arise from driving automobiles fueled by gasoline?
b. Given what you have learned about externalities and taxation, what is the case for increasing the gas tax in the United States to the European level?
c. Given what you have learned about externalities and taxation, what is the case against increasing the gas tax in the United States to the European level?
d. What is your view on whether the United States should raise the gas tax to the European level and why?
Show the country's production possibility curve.
Ann McCutcheon is hired as a consultant to a firm producing ball bearings. This firm sells in two distinct markets, each of which is completely sealed off from the other. What price should managers charge in each market?
What assumptions about the rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there the gap in the oligopolist's marginal-revenue curve? How does the kinked-demand curve describe price rigidity in oligopoly..
Allied company machines produces the output that it sells in the highly competitive market at the price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers
Demand and supply situations in perfectly competitive market for unskilled labor are as follows, Estimate the industry equilibrium price or output combination both graphically and algebraically.
Discuss and explain supply and demand as well as elasticity concepts of Walmart. Incorporate these ideas to validate how the corporation establishes its pricing strategy.
Explain the meaning and importance of high frequency trading with a literature search and examples in 10 double -spaced pages in a Word document. APA style.
Assume that macroeconomic forecasters predict that the economy will be expanding in near future. How might managers employ this information
Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
A number of stores offer film expanding as a service to their consumers. Assume that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 .
Find linear demand and supply curves that are consistent with this information and how would the equilibrium price of ethanol motor fuel in the first half of 2008 compare to the price in 2007?
Identify the government department that compiles the statistics on unemployment. About how many business firms in the United States are proprietorships?
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