Dean values the same drone

Assignment Help Business Economics
Reference no: EM131244406

Sammy has a drone that he values at? $1,500. Dean values the same drone at? $2,000. Sammy decides to sell the drone to Dean for? $1,800. If the government imposes a? $250 tax on the sale of? drones,

A. the tax yould cause the deadweight loss of $500 B. Sammy and Dean would still be able to complete the transaction C. Sammy and Dean would not be able to complete the transactoin. D. Both A and C are correct

Reference no: EM131244406

Questions Cloud

Nation with abundant capital resources tends to be exporter : A nation with abundant capital resources tends to be an exporter of:  A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a:
Compute income elasticy : You are the marketing manager for xyz Corp.You have this regression result for your product: Q=2000-3.5P+1.2*1 Right now your price is 10 and the average income of your customers is $30,000. Compute income elasticy. Is your good a normal good or an i..
What was the other persons dominant strategy : Think of a time when you were involved in strategic decision making. This could be a business situation or a personal situation. It could be anything from purchasing inputs for a manufacturing firm to trying to divide up household chores. What was th..
Prevent scarcity from re-occurring in the future : How does rent control affect the real-estate market? Are you in favor of rent control or not, and why? What needs to happen to prevent scarcity from re-occurring in the future?
Dean values the same drone : Sammy has a drone that he values at? $1,500. Dean values the same drone at? $2,000. Sammy decides to sell the drone to Dean for? $1,800. If the government imposes a? $250 tax on the sale of? drones,
Subsidy creates a deadweight loss : Sammy has a drone that he values at? $1,500. Frank values the same drone at? $1,000. The government offers a subsidy of? $800 to the buyers of? drones, and Sammy and Frank agree on a price of? $1,600. The subsidy creates a deadweight loss of
What is total cooperative surplus gained as result of trade : Sammy has a drone that he values at? $1,500. Dean values the same drone at? $2,000. Sammy decides to sell the drone to Dean for? $1,800. What is the total cooperative surplus gained as a result of this? trade?
Monopolistically competitive market environment spends : A cosmetic firm operating in a monopolistically competitive market environment spends a lot of money in advertisement and ends up with super-normal profit even in long run. Is it possible? Explain your answer in few words.
What portion of the tax is paid by the buyer : Assume that a $1 tax is imposed on the seller. The new Qs=2+3(P-1). Find the new P&Q. What proportion of the tax is paid by the seller? What portion of the tax is paid by the buyer?

Reviews

Write a Review

Business Economics Questions & Answers

  Assume risk neutral behavior

Suppose it is believed that the U.S. dollar will steadily depreciate against the euro at a rate of 2% a year over the next three years. After that, people expect the dollar–euro rate to be steady. Ten-year U.S. government dollar bonds yield 8%. What ..

  What is the mark-up percentage of selling price

Jenny is starting a bakery and needs some help with pricing the muffins. Since she knows you have studied pricing, please help her to determine the following. The muffins cost $0.35 to produce. She would like to sell them for $1.20. What is the mark-..

  Federal sales tax on goods and services

In the last few years, the Federal government cut the GST (the federal sales tax on goods and services which Ontario later blended into the PST to create the HST) by two percentage points. The federal government could have transferred this cut to inc..

  Explain economy produced no capital goods

This means that in the particular year the economy produced no capital goods at all." Do you agree. Why or why not? Explain: "Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zer..

  What are monopolist profit maximizing output and price

What are monopolist's profit maximizing output and price. What is resulting deadweight loss relative to competitive outcome. Suppose government levies a specific tax of $5 per dose on monopolist.

  Short-run decision regarding shut-down

Mike's Cafe is a profit-maximizing, competitive coffee shio. Mike charges $2 per cup. His total cost each day is $150, of which $75 is a fixed cost. He sells 50 cups a day. What can you say about Mike's short-run decision regarding shut-down and his ..

  Price elasticity of demand for either of their services

Suppose that twin eye doctors work across the hall from each other. Even their parents have trouble telling them apart, and they both went to the same medical school. From this information, we would guess that the price elasticity of demand for eithe..

  Government intervene in the economy

Why does the government intervene in the economy? Should they and what would the impact be if they did not?

  What circumstances would market equilibrium be efficient

Suppose the marginal cost of television sets is constant at $100. The annual demand for television sets is given by Q = 200,000 – 500 P, where Q is the quantity sold per year and P is the price of television sets. Under what circumstances would the m..

  Explain the inefficiency of tax on good

Show graphically and explain the inefficiency of a tax on a good when there is no externality. Economists advocate charging a price and oppose mandating or subsidizing clean technologies. Give the economists' reasons for opposing mandates or subsidie..

  Total utility is determined

Total utility is determined by: a. finding the additional utility gained from consuming one more unit of a product. b. dividing the marginal utility derived from consuming a good by its price. c. multiplying the quantity purchased of a good by the pr..

  Which surveys are mandated and which are voluntary

The regulatory agencies, JCAHO, CMS, and State Departments of Health all survey (inspect) hospitals and medical facilities. How may these processes improve quality in care? Which surveys are mandated and which are voluntary? Why would a facility choo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd