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The minimum price at which a few of the producers are willing to sell a pound of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, producers sell 212.5 billion pounds of cheese (some to consumers and some to the USDA). How much producer surplus is created now?
A December 2007 issue of The Economist contained the following quote in an article about Germany: "The government has just chopped the payroll tax that finances unemployment insurance, which should encourage employment." Comment on this statement,..
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.
When prices are ($4, $2), Valerie chooses the bundle (9, 18), and when prices are ($1, $2), she chooses the bundle (8, 14). Is Valerie's choice of bundles consistent with the Weak Axiom of Revealed Preference.
Suppose further that the MCP is 0,8 if the government wants to increase the real GDP to 2000 billions, by how much should the government increase /decrease its lump-sum taxes? Assume the price level is fixed.
Discuss salary determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimated useful life of 200,000 miles. Determine the depreciation rate per mile.
Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?
Take a position on whether or not companies benefit from using a structured profit approach to calculate their profits. Provide an explanation of your position with at least two examples or scenarios of the use of such an approach.
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. Is its supply elastic, or is it inelastic.
Illustrate what is the price elasticity of demand. What is the cross-price elasticity of demand. Suppose the price of the good, P, goes to $2.00.
When we apply 50 tons of fertilizer, the total yield is 1500 bushels. Elucidate the marginal value product per ton of fertilizer.
If David and Ellen live in rent-controlled apartments, Illustrate what is the equilibrium cost for the non-rent-controlled apartments.
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