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Apple Computer wants to have $2.1 billion available 5 years from now to finance production of a handheld “electronic brain” that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler system. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $50 million, how much will the constant increase G have to be each year? Assume the investment account grows at a rate of 18% per year.
Suppose there is a bill to increase tax on cigarettes by $1 per pack coupled with an income tax cut of $500. Suppose a person smokes an average of 500 packs of cigarettes per year--- and would thus face a tax increase of about $500 per year from the ..
Suppose a bar has two types of clients: men and women. Suppose the monopolist can only charge one price. What price would he charge? Suppose the monopolist engaged in third degree price discrimination. What prices would he charge?
illustrate why lower taxes in the current period but higher taxes in the future may make some consumers better off.
A monopolist offers a single price to two consumers with the following demand functions: A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produce..
Which of the following terms is defined as the process whereby Congress approves spending for the various federal programs?
q.based on the production function parametera. which industry or industries appears to exhibit decreasing returns to
Some retailers must contend with excessive customer returns of purchased items. For example, a person may purchase an expensive item at a clothing store; wear it to a fancy event, then return the item. To what extent is the problem of excessive custo..
Discuss salary determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
The government announces that it will privatize the main bank in the country through the stock exchange.
When is predatory pricing a most effective entry barrier?
Assume the current market price of candles is such that there is a surplus.
the company you work for asks you to recommend whether their mercedes truck should be replaced now or kept in service
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