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On July 1, 1965, the federal ad valorem taxes on many goods and services were eliminated. Comparing prices before and after this change, we can determine how much the price fell in response to the tax's elimination. When the tax was in place, the tax per unit on a good that sold for p was If the price fell by when the tax was eliminated, consumers must have been bearing the full incidence of the tax. Consequently, consumers got the full benefit of removing the tax from those goods. The entire amount of the tax cut was passed on to consumers for all commodities and services Brownlee and Perry (1967) studied for which the taxes were collected at the retail level (except motion picture admissions and club dues) and most commodities for which excise taxes were imposed at the manufacturer level, including face powder, sterling silverware, wristwatches, and handbags. List the conditions (in terms of the elasticities or shapes of supply or demand curves) that are consistent with 100% pass-through of the taxes. Use graphs to illustrate your answer.
The state's fish and game department has a capital budget of $9million. What is the government's opportunity cost of capital if ithas the following projects to consider What does this indicateabout which projects should be done
What is the composition of GDP by percentage?
How would the decision above be affected if the firm's bond rating was reduced and its cost of capital changed to 10 per cent?
Analyze the sensitivity of the picture frame design of Fig. 18.11, and compare it to that of the Xducer and to Motorola's published statement that the picture frame achieves a 40% increase in span.
Two girder designs are under consideration for a bridge for a 1,200-foot crossing. The first is expected to result in a superstructure weight per foot of 22(S) + 800, where S is the span between piers. The second should result in superstructure we..
The following constructional information is available for a gasketed-plate heat exchanger
Imagine a manufacturing industry that produces 100 million units of compact digital cameras annually in the US market. Suppose the minimum efficient scale (MES) for the production of digital cameras is 10 million units annually.
A torque of 400 lb ft is applied to the square tube with constant 0.10-in. wall thickness. Determine the smallest permissible dimension a if the shear stress is limited to 6500 psi.
Define the factor of production called capital. Give three examples of capital, different from those in the chapter. Distinguish between the factor of production capital and financial capital.
b)At the profit-maximizing output rate, what are the monoplist's average total cost and average revenue c) At the profit-maximizing output rate, what are the monopolist's total cost and total revenue d) What is the maximum profit
explain how the values (how to calculate them) for Marginal Physical Product and Marginal Revenue Product First Column: Number of workers Second Column: Total output Third Column: Marginal Physical Product Fourth Column: Marginal Revenue Product
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
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