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Suppose that the U.S. government determines that cigarette smoking creates social costs not reflected in the current market price and equilibrium quantity of cigarettes. A study has recommended that the government can correct for the externality effect of cigarette consumption by paying farmers not to plant tobacco used to manufacture cigarettes. It also recommends raising the funds to make these payments by increasing taxes on cigarettes. These actions by the government lead to all the following outcomes, except
A leftward shift of the supply curve of tobacco
A leftward shift of the supply curve of cigarettes
An increase in the negative externality caused by cigarette smoking
A reduction in the negative externality caused by cigarette smoking
The elasticity of demand for labor with respect to the wage rate will be less if firms using this labor are experiencing decreasing returns to scale than if they are experiencing increasing return to scale True false why
q.the long-run cost function for leanns telecommunication firm is cq 0.03q2. a local telecommunication tax of 0.01 has
this question uses the general monetary model where l is no longer assumed constant and money demand is inversely
abc company owns a crane with an original cost of 500,000$,with an estimate salvage value of 200000.its life is estimated to be 15years.using straight line method, Compute book value at the beginning of year 9.
An ice cream company has hired two sales persons to run two ice cream stores on a beach. These two employees will receive a fixed salary regardless of the number of ice creams that they sell and they have to charge the same price set by the company. ..
Illustrate what will be the total consumer surplus to those consumers.
Draw the Hick's income and substitution effects for c1,c2 in c1,c2 space if the interest rate decreases to .05.
The Honolulu tourism commission currently proposed a 7% tax on hotel rooms to pay for an outdoor amphitheater.
Monopoly is often heralded as the ultimate goal of a firm, to be the only seller in a market. however the picture might not be as rosy as it appears if you actually reach monoply status. Why is that. How monopolies in real world earn huge rates of..
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
What could be the full increase in real GDP from the change in government spending assuming that the aggregate supply curve is horizontal across the range of GDP being considered.
q.assume a calculator virus disables the nations automatic teller machines making withdrawals from bank accounts less
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