### Exchange for someone doing their tax returns

##### Reference no: EM13860270

Caroline has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm’s website in exchange for someone doing their tax returns.

Which of the following principles of economic interaction best describes this scenario?

a. Markets allocate goods effectively.

b. When markets do not achieve efficiency, government intervention can improve overall welfare.

c. All costs are opportunity costs.

d. There are gains from trade.

### Write a Review

#### Price discrimination increase or decrease publishers profit

The price elasticity of demand for hardback is 0.5 and the price elasticity of demand for paperback is 2. Suppose the publisher increases the price for hardback by 10% and decreases the price of paperback by 10%. Complete the following table. Does pr..

#### Correct interpretation of the confidence interval

Suppose an ASU student sampled 50 students to estimate the proportion of students that favor Billy Big time for Student Body President. The student calculated a sample proportion of .38 and a 95% confidence level that had a margin of error of .02. Wh..

#### Supply and demand curves in a market

ssume that the supply and demand curves in a market are described by the following equations. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may us..

#### The strategies-assumed to be same for both banks

Two banks (Franklin and Lincoln) compete for customers in the growing city of Logantown. Both banks are considering opening a branch office in one of three new neighborhoods: Is there a pure strategy for this game? If so, what is it? If not, identify..

#### Calculate the consumer surplus the producer surplus

Calculate the consumer surplus, the producer surplus, and the total welfare for the competitive equilibrium determined in part (a) of this question.

#### Car companies will buy a latest car assembly machine

Elucidate how many car companies will buy a latest car assembly machine. Interest payments are made once a year.

#### What are non-income determinants of consumption and savings

What is MPS? What are the non-income determinants of consumption and savings? What is interest rate? What is expected rate of return?

#### What is the current household saving rate

What is the current household saving rate in the United States? What do you think of this saving rate? Too high or low?

#### Should the old unit be replaced now

Computer time saved is worth \$325 per hour and the interest rate is 12% compounded monthly. Should the old unit be replaced now? If the system is used 16 hours per day, calculate the IRR represented by using the improved storage system.

#### Illustrate what makes measuring economies of localization

Illustrate what makes measuring economies of localization or economies of urbanization difficult.

#### Draw supply- demand diagram of the federal funds market

Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of \$85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.

#### Q1 firms with costs c q2 36 face demand p 24 - nq and

q1. firms with costs c q2 36 face demand p 24 - nq and behave under the rules of monopolistic competition. compute