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Suppose a tax of $.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.30 per unit, the deadweight loss from the new tax would be:
a. $200.
b. $300.
c. $900.
d. $9,000.
The initial cost of a pickup truck is $12,859 and will have a salvage value of $4,027 after five years. Maintenance is estimated to be a uniform gradient amount of $181 per year, with zero dollar for first year maintenance. The operation cost is esti..
Assume that Garvin Enterprises', Corp. coupon bond currently sells for $5,800. Bond has a 5 year maturity, an annual coupon payment of $261, and a future value of $5,800. What is the promised yield to maturity on Garvin Enterprises' bond?
Over what range of wealth is this function potentially appropriate to analyze your financial choices under risk? Over this range of wealth, what is your attitude toward risk? What is your Arrow-Pratt measure of risk attitude?
Illustrate what effect would customer expectations of substantial price increases in music players have upon the demand for portable music players in a completive marketplace
q. youve been on your lunch break for less than 45 minutes when your boss orders you to return to work immediately or
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
Suppose that a golf club is designing a two-part tariff pricing mechanism in order toincrease profits. Suppose there are two types of golfers, mad-golfers and normal-golfers
Suppose a liquidity trap exists and current output is below its natural level.(i.e. an economy is currently operating at the zero nominal interest rate) can this economy return to its natural level automatically? if it can not, explain the mechanism ..
Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?
q1. explain and show graphically the effect on the supply and demand for bonds in a deflationary period. what is the
Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found to the Demand curve.
Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..
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