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Assume that the demand curve is given by the following: p=20 and the supply curve is given by Q=p-5. If the government puts in place a tax of 5 that must be paid by the seller the total amount of tax revenue raised is equal to what?
A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.
monthly payments on a loan is $1000 for the next 10 years. Determine the value of the loan if the nominal rate 6% compounded monthly. if we want to pay the loan in 50 months what is the monthly payment
Assume that a monopoly's production function is Cobb-Douglas, Q = L^1/2 * K^1/2, where L is labor and K is capital. The demand function is P = 100 - Q. The wage rate, wL, is $1 per hour, and the rental rate of capital, wK, is $4 per hour. (a) Deri..
determine the present equivalent value of $400 paid every three months over a period of seven years in each of the follwing situations: a) the interest rate is 12% componded annualy. b) the interest rate is 12% compounded qarterly.
Suppose there are three people discussing the amount of taxes they pay and wondering if the current tax system is fair. Jeff earns an income of $300,000 a year and has an annual tax bill of $40,000. Margaret earns and income of $200,000 a year an..
Southwest Airlines (SWA) is planning to expand its fleet of jets to replace some old planes and to expand its routes. It has received a proposal from Boeing to purchase some old planes and to expand its routes. It has received a proposal to purcha..
Given the above variable cost data and assuming fixed costs equal the value of the last three digits of your MDC student ID, create a file using Excel that lists Output, Fixed Cost, Variable Cost, Total Cost, Average Fixed Cost, Average Variable C..
Suppose you have been recently employed as manager of a restaurant and a very important credit card firm offers you a deal that is supposed to raise your sales.
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by:Qd = 998 - 5Pw + 4 Y - 6Pg
A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $37,000 per year. The store is located on prime real estate in a college town. World of V..
Determine when a competitively produced product generates negative externalities in production, the industry will,
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