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Suppose companies can deduct interest payments on their debt against their taxable income: they pay tax on pro?ts, net of interest payments on debt. The revenue that a com- pany generates from some new investment is taxed, but it can be offset by depreciation of the capital. Suppose the government introduces a 100% deprecation allowance so that com- panies can immediately deduct all investment spending from taxable pro?t. But to offset this very generous measure, they set the corporate tax rate at a high level of 60%. Is the resulting tax system advantageous or disadvantageous to investment-take as your benchmark a situ- ation with no taxes at all. Assume companies use debt to ?nance investment.
If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.
Sometimes it is convenient to think about the consumer's problem in its "dual" form. This alternative approach asks how a person could achieve a given target level of utility at minimal cost. this approach will yield the same choices for this consu..
Describe "modern economic growth" and describe the institutional structures needed for an economy to experience it. Identify the general demand, supply, and efficiency forces that give rise to economic growth.
These multiple choice questions are belong to Economics. The first question is about the exception for competitive market structure and the second question is about the economies of scale a firm experiences.
Ronald Coase points out that a market failure does not arise simply because people ignore the external cost of their action. What other condition is necessary What did Coase consider to be the efficient solution to a negative externality
What is the relationship between the MC curve and the ATC, and between MC and AVC and how much will the firm produce in the short run? How much are total profits?
youre part of a group of economic consultants supporting the government of sweden. sweden wants to liberalize trade in
Analyze the characteristics of each of these goods. Focus on the characteristics that define each good as public or private.
select a product produced in the u.s. and a foreign country which you are familiar from the e-activity. determine if
monopoly1.a monopolistic firm has the short-run marginal cost functionmc 20 4qwhere k capital is fixed and l laboris
Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand, output, and employment in the short run. Use the AD/AS figure to illustrate.iii) Considering the macroeconomic effects of pessi..
Explain the various types of exchange rate systems that countries can adopt, and discuss the benefits and weaknesses of each.
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