Why might this decision be against its own best interests

Assignment Help Business Economics
Reference no: EM13156636

Suppose that the tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interests?

Reference no: EM13156636

Questions Cloud

Depreciation expense using the straight-line method : Calcuate the depreciation expense using the straight-line method for the first two years the equipment is owned.
What is velocity if the money stock equals : Real GDP equals 5000, nominal GDP equals 10,000 and the price level equals 2, then what is velocity if the money stock equals 2000?
Are a majority of these organisms autotrophic : So we have Algae, Fungi, Lichens, Mosses, Ferns, Gymnosperms, Angiosperms (monocot) and Angiosperms (dicot).
What is marginal cost : Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600. What is marginal cost?
Why might this decision be against its own best interests : Suppose that the tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interests?
What are the four roles that dna must play in cells : What are the four roles that DNA must play in cells?
Concept of belonging : I need ideas on how 1984 by George Orwell and As You Like It by Shakespeare explore the concept of belonging, and how this is represented through context/structure/language forms and features.
What will be the macroeconomic result : Suppose that full-employment (and full-capacity) output in an economy is $200. If Ca is $150, lg is $50, Xn is -$10, and G is $30, what will be the macroeconomic result?
Discuss both theoretical and practical reason for protecting : Biodiversity hotspots are almost universally supported by scientists as places deserving immediate and substantial protection.

Reviews

Write a Review

Business Economics Questions & Answers

  Janice wallermthe manager

Janice Wallermthe manager of the customer service depart at First Bank of Jefferson County,can hire employees with a high school diploma for $20,000 and employes with a bachelor's degree for $30,0000.

  Compute the optimal pricing scheme of the iphone

Compute the optimal pricing scheme of the iphone, Assume which there are equal numbers of every customer type.

  Produce the components of the system

Elucidate Illustrate what you can do, if the best technology was used to produce the components of the system.

  Impact of a tax cut in an economy operating

What is the impact of a tax cut in an economy operating under a flexible exchange rate regime on household spending, interest rates.

  What is the exchange rate between the euro

a comparable hotel room in Hanover, Germany, costs 200 euro. A) Which hotel room is cheaper for a U.S. Tourist? B) What is the exchange rate between the euro and the British pound?

  Show analytically that equilibrium price under cournot

Show analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price.

  Illustrate what is the wto

Illustrate what is the WTO. Briefly describe one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.

  Illustrate where would they set up trading posts

Suppose there are two spice-producing firms, and each can set up one trading post. Illustrate where would they set up trading posts and what prices would they charge.

  Presently lower than the profit maximizing level

You have become concerned to the rm's sales are presently lower than the profit maximizing level, given the marginal cost of $1500 per workstation.

  Explain seafood restaurant in a beach resort town

A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month.

  Annual depreciation allowance for the first year

Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.

  State briefly the basic characteristics of pure competition

State briefly the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd