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Explain the difference between the benefits principle and the ability-to-pay principle of taxation. Which principle of taxation stresses vertical equity? Explain.
data show rents and some other data for student housing around the ann arbor campus of the university of
Calculate autonomous expenditute. b. Calculate the marginal propensity to consume. c. What is aggregate planned expenditure when real GDP is 200 billion pounds d. If real GDP is 200 billion pounds, what is happening to inventories
Return again to the cartel in Problems 4 and 5. Now suppose that the market game repeated indefinitely. What is the discount factor (sigma) is necessary now in order to maintain the collusive agreement in an indenitely repeated setting
Suppose that the demand for broccoli is given by Demand Q= 1,000 - 5p where Q is quantity per year measured in hundreds of bushels and P is price in dollars per hundred bushels. The long run supply curve for broccoli is given by Supply: Q= 4P - 80
Examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
We can either look at a tax increasing the costs to the consumer or producer (depending on which party physically pays the tax), or we can look at it as a wedge between the (full) price the consumer pays and the (net) revenue the firm receives.
an economy has a production given by y k0.25n0.75.a. what king of returns to scale does the production function
Brian and Kim own a business employing 8 workers to produce commemorative t-shirts for campus organizations and events. They are currently producing 2000 shirts per month with average total cost of $8.00, average fixed cost of $2.00, and marginal ..
A monopolist's demand curve is described by Q = 50 - 0.5 P The firm's cost function is TC = 10 + 2 Q a) Find the profit-maximizing quantity and price. b) If the industry is regulated in a way that requires it to set P = AC
Based on the comparison of last year's results from Wal-Mart, Costco, Target and the retail industry, what would your expectations be about Target's revenue growth, gross margin, operating margins, and number of employees this year?
When consumers do not have enough time or opportunity to aoid price increases, governments can levy sales taxes that distort resource allocations among producers to a smaller degree.
Explain each of primary methods used for setting value, describing its applications, strengths and weaknesses, show the formula and compute an example for each method.
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