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The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has placed a tax of $4 per two-liter bottle that is added to the consumer’s bill at the checkout.
a. What is the reduction in total costs due to the tax?
b. What is the deadweight loss of this tax?
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
Illustrate what would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production.
Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Explain why it costs the government (taxpayers) more to subsidize this..
Using the theory of symbolic interactions, how do sociologists explain the uniqueness of each individual human being?
Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The insulation has a life expectancy of 10 years. Determine which insul..
Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 2X1/3 Y2/3. If Px = $4, Py = $5, and Income I = $200, compute Mary’s utility maximizing consumption bundle. Show the utility maximizing consumption bundle on a graph.
Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It has a current market value of $12,000 and it will have a $0 salvage value a..
Would the employee be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
The owner of a luxury motor yacht that sails among the 4000 Greek islands charges $344/person/day if exactly 20 people sign up for the cruise. However, if more than 20 people sign up (up to the maximum capacity of 100) for the cruise, then each fare ..
In the year 2011 the prices at which producers sold their output were quite real to those producers. If they had tried to sell their products at 1983 prices their customers and stockholders would have rightly thought the producers had lost touch with..
Illustrate the effect of each of these proposed policies in a demand and supply diagram of the gun market. For each question, show the price paid by consumers, th eprice received by producers an dthe quantity of guns sold.
Compute percentage change of real exchange rate between US and Japan in past year. Has US Dollar become weaker or stronger in real term.
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