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1.) Distinguish between the benefits-received and the ability-to-pay principles of taxation. Which philosophy is more evident in the present US tax structure? Justify your answer.
To which principle of taxation do you subscribe? Why?
2.) Examine the graph below, and then answer the following two questions.
(a) What is the tax burden to the seller?
(b) What is the tax burden to the buyer?
3.) In what respect is the economic decision to move across international borders an investment decision?
4.) What are the "twin" problems of the health care industry as viewed by society? How are they related?
Write about the problem or issue as if you are explaining it to someone who has never taken an economics class.
How does the charging the monoply a specific tax per unit affect the monopoly optmum
Bertrand solution. How much each of the firms is producing and what is the resulting price and how much each of the firms is producing and what is the resulting price? What are the firms' profits?
How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
Lawn mowing services are supplied by host of individuals in suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:
A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.
Societies are frequently concerned about whether police are vigilant in carrying out their responsibilities. Many societies have experimented with incentive compensation for police.
Results for Linear Demand Curve Estimation. Kenny Mcormick manages a 100-unit apartment building and knows from experience that all units willbe occupied if rent is $900 per month.
Find out the quantity at which profits are maximal. given that quantity, find out the price charged and monopolist's profits. (solve for answers using the equations)
When Wal-Mart locates in a smaller town, often the local retailers (e.g., hardware, clothing, and appliance stores) are unable to successfully compete and are driven out of business.
During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.
Describe the effect of each of the following events on the market for labor in the computer manufacturing industry. Use graphs.
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