Solution-Additional costs or benefits due to this shift

Additional costs or benefits due to this shift

Assignment Help Business Management

Reference no: EM131227347

Because of the reduced use of the highway, demand in the secondary market for gaso- line falls by 30,000 gallons per year. There is a stiff tax on gasoline, one that existed prior to the new toll. Assuming that the marginal cost of producing gasoline is $1 per gallon, that these marginal costs are constant (i.e., the supply schedule is horizontal), that no externalities result from the consumption of gasoline, and that the gasoline tax adds 30 percent to the supply price, are there any additional costs or benefits due to this shift? If so, how large are they?

Reference no: EM131227347

Questions Cloud

Determine the expected us dollar cash flows : Does Cardinal expect to be favorably or adversely affected by the interest rate risk? Explain. - Does Cardinal expect to be favorably or adversely affected by exchange rate risk? Explain.

Why are cobb-douglas production functions : 1. Consider the following Cobb-Douglas production function for Red Bean Coffee: Q = (L^0.2) * (K^0.5) a. Intuitively, why are Cobb-Douglas production functions more appropriate representations of reality than, say linear production functi..

Why isn''t it socially desirable for all cases to settle : What does it mean to say that judges decide cases by precedent? Describe the costs and benefits of this method of judicial decision making.

Define types of risk that threaten the safety and security : Thoroughly discuss all of the elements associated with developing a budget for a security action plan. Include a discussion about why budgets should be developed during the planning process and the possible consequences associated with developing ..

Additional costs or benefits due to this shift : Assuming that the marginal cost of producing gasoline is $1 per gallon, that these marginal costs are constant (i.e., the supply schedule is horizontal), that no externalities result from the consumption of gasoline, and that the gasoline tax adds..

What impacts does this have on the employees : Does your organization/employer/workplace use or encourage forms of relaxation or any other stress management tools? How is it different/similar to the example above? What impacts does this have on the employees

Rights to a new video game he has developed : A young software engineer is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers $10 000 at the end of each year for the next five years, and then $20 000 per year for the fo..

Impact effectiveness of market theory consumer protection : Which of the following would negatively impact the effectiveness of market theory consumer protection - According to a 2001 study, how many tons of toxic pesticides do U.S. companies export to other nations every hour?

What are some benefits encountered in coordinating : What are some benefits and problems encountered in coordinating counter-narcotics operations? From it, you will understand the variety of agencies and missions and the complexity of coordinating operations.

User Account

All Pages

Additional costs or benefits due to this shift

Reference no: EM131227347

Reference no: EM131227347

Questions Cloud

Reviews

Write a Review

Business Management Questions & Answers

Matching leadership style to individual development

How can cheryl smith help managers at west

Needs assessment for training

Decisive influences on strategy formulation

Explain the listening process

Diverse workforce and shaping high-performance culture

Explain what is the difference between advertising plan

Training and development

Biggest online auctioning companies

Prepare business plan for new product or service

Undergoing some significant structural changes

Ventral portion and ending

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT