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Assume that your firm above is the N.Y. Yankees and the league owners impose a lump sum tax of $4 million dollars on your firm. How will the tax affect your profit maximizing output and pricing decision (view output as a measure of desired run production or wins for the season if you like). Explain your reasoning. Now assume that the league owners impose a tax of 25 percent on costs that are above $500,000. Calculate your optimal output and pricing decision, and your profits.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Assume an airline flying on the Charlotile - Chicago route has estimated the demand curves for three different types of customers: business
Examination of the company for which you are currently working (or a company with which you are familiar). Answer the following questions regarding this company.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Make a table and graph of Crusoe's production function. Find out the Marginal product of labor for Crusoe at different quantities of labor.
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
Make a short paper which relates how specific material from economic course where we cover supply and demand, elasticity and etc.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums-Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational arc..
The impact of changing from a federal income tax to a federal consumption tax would be:
Let's say you live in Montana and you like to ride mechanical bulls in bars on Friday nights. You estimate that over the next year there's a 4% probability you will incur medical bills of $20,000
What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit- maximizing (or loss-minimizing) rate?
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