User Account

All Pages

Is it higher or lower than in the absence of the tax

Assignment Help Microeconomics
Reference no: EM13314685

Suppose that the Government introduces a labor tax: for each hour of labor hired, the firm needs to pay  to the Government. Find the new optimal demand for labor. Is it higher or lower than in the absence of the tax? 

Reference no: EM13314685

Questions Cloud

What is the firm fixed cost at this level of output : The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market.
Explain why this manager might nonetheless have a strong : Explain why this manager might nonetheless have a strong incentive to maximize the firm’s profits.
Consider now the decision problem of the agents : Consider now the decision problem of the agents. Let n denote the number of hours per month that an agent works. Write an equation relating n and l. Write the agents budget constraint. Express the budget constraint in terms of c and l. State the agen..
What level of q maximizes net benefits : Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 150 + 28Q – 5Q2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) = 8.)
Is it higher or lower than in the absence of the tax : Suppose that the Government introduces a labor tax: for each hour of labor hired, the firm needs to pay  to the Government. Find the new optimal demand for labor. Is it higher or lower than in the absence of the tax?
Consider an economy in which the labor market is competitive : Assume that the price of the consumption good (denote it by P) is exogenously given and equal to 2. Use W to denote the hourly nominal wage in the economy
An increase in the real interest rate makes current : If an agent is liquidity constrained, then an unexpected increase in transitory income of $100 can result in the agentís current consumption increasing by $100"
Affect the marginal product of any factor : Suppose that the production function is given by Y = C + KaN1-a where C is a positive constant. Does an increase in C affect the marginal product of any factor? Will it affect labor productivity?
Over what range will changes in marginal cost have no effect : Over what range will changes in marginal cost have no effect on CDW’s profit-maximizing level of output?

Reviews

Write a Review

Microeconomics Questions & Answers

  Discuss the new equilibrium price and quantity which changes

What happens to the demand curve and the supply curve when any of these determinants change. Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product.

  Draw two cost functions on the graph

Now suppose that x 2 is also free to vary. Derive the demands for the inputs and the long-run cost function of the firm - Draw the two cost functions on the graph. Do they cross? Which one lies higher?

  Evaluate the change in deadweight loss

Calculate the change in deadweight loss if the U.S. replaces a prohibitive tariff per unit on imported wine by an equal production subsidy per unit of wine sold by U.S. producers.

  What are the factors that affect pay differentials?

What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?

  Automation is the prime cause of unemployment

minimum wage legislation increases costs of production (and thus product prices) and creates an excess supply (unemployment) of unskilled labor.

  Find profit maximizing order quantity

A television station is planning the sale of promotional dvds. It can have dvds manufactured by one of two suppliers. Supplier A will charge the station a set up fees of $1200 plus $2 for each dvds;

  How subsidy would achieve socially efficient level of output

If the government wanted to encourage a monopoly to produce the socially efficient quantity, should it use a per-unit tax or a per-unit subsidy. Explain how this tax or subsidy would achieve the socially efficient level of output. Among the variou..

  How efficiency can mean many things to many people

Efficiency can mean many things to many people. Even in economics, there are different types of efficiency. Here we are discussing productive efficiency. An economy is productively efficient whenever it is producing the maximum output with given t..

  What was dianes economic profit

Highest average fixed cost at which the firm can produce any given level of outputd. lowest marginal cost at which the firm can produce any given level of output

  What are the expected values and variances

Compute the probability of failing to stop at an intersection, given the driver was on the cell phone.

  Define aggregate production function with typical shape

Draw an aggregate production function with typical shape and label it "F". Make sure to label the axis of the graph. Now, add two more production functions based on the following scenarios.Efficient institutions are adopted in a country. Label this..

  What is gross domestic product

What is gross domestic product (GDP) and what is the use of it and can a country achieve a 0% unemployment rate, explain

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd