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You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the regulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that based on current tax rates, the monthly market demand for telecommunication services is given by Qd=250 -5P and the market supplying (including taxes) is Qs=4P-110(both in millions) where P is the monthly price of telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function reform that would dramatically cut tax rates, leading, to a supply function under the new tax policy of Q^s= 4.171P -110. How much money would a typical consumer save each month as a result of the proposed legislation?
Present in detail the following two theories/models associated with “post-Heckscher-Ohlin” trade theory. In the case of each theory/model, be sure to indicate important characteristics of real-world international trade that the theory/model is attemp..
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
Which of the following factors turned the budget surplus into a deficit in 2002?
Describe a national model of universal healthcare coverage. Compare the model's methods of funding for healthcare in the United States. Identify which one you think is best by discussing access and quality detail.
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
Given this risk, how should the column player act. Anticipating the column player's thinking, how should the row player act.
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Under these situations find: Level of output x, Producer surplus and net damages. A regulator imposes a unit Pigovian ta..
Why doesn't the U.S. simply restrict all goods coming in from China? Why can't the U.S. just minimize the amount of imports coming in from all other countries?
What is the relationship between business operations and CSR at BP - Does the organization consider CSR as obligatory or do they seek opportunities for CSR? In other words, is the organization reactive or proactive?
q1. given an exchange rate of sf1.25 1 how do the car prices of both countries compare?q2. the payoff matrix of
The price elasticity of demand for natural gas is -1.2, and the price elasticity of supply for natural gas is 0.6. If the government imposes a ceiling price for natural gas that is 10 percent below the equilibrium price, the result will be a shortage..
The Federal Reserve is considered independent because. National banks must take overnight loans from the Federal Reserve. One reason the Federal Reserve can conduct active monetary policy is that the dollar has a floating exchange rate.
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