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You are an assistant to a senator who chairs an ad hoe committee on reforming taxes o telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs, Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the regulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that based on current tax rates, the monthly market demand for telecommunication services is given by Qd=250 -5P and the market supplying (including taxes) is Qs=4P-110(both in millions) where P is the monthly price of telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function reform that would dramatically cut tax rates, leading, to a supply function under the new tax policy of Q^s= 4.171P -110. How much money would a typical consumer save each month as a result of the proposed legislation?
Consider a firm selling two different products at two different plants. The cost function for both plants is given by C (q 1 , q 2 ) = q 1 2 + αq 1 q 2 + q 2 2 .
Elucidate that specialization and trade can move both countries beyond their production possibility frontiers.
When the U.S. economy is at full employment, why isn’t the unemployment rate at zero percent? Should we try and completely eliminate unemployment?
The size of the worker force in a community these folks are gainfully employed What is the unemployment rate.
The supply is simply the sum of the marginal cost curves of all the firms in the industry. Suppose that all the competitive firms collude to form one single monopoly firm. (Collusion changes neith the demand nor the cost conditions in the industry..
RainAway, Inc., makes polymers used to coat the windshields of car's, planes, and boats-Complete the following table based on the RainAway product's price, output and costs per year:
Consider Bob, he washes his car by hand rather than taking it to the local car wash. When asked why he washes it by hand, Bob explains "you should never pay for something you can do yourself.
Dr. Cutthroat is a plastic surgeon specealizing in turning ugly, old people into young and beautiful/handsome creatures, for a fee, of course. He has just started a practice in an island far away from civilization, inhabited by ric h and ugly peop..
The college of business each of these in turn has a dean who is responsible for faculty departments such as economics and finance. Why is an M-form more likely than a U-form to be an efficient way of organizing a university and to organize the sch..
Melinda would like for her descendants to be able to withdraw 40000 every year forever starting in 30 years. She has found an investment that will provide her a guaranteed 10% return forever. To fund the withdraws she will make ten equal annual d..
Let's assume that thereare no trade barriers and exchange rates are freely fluctuating. At the same time, the European Union develops a technology that reduces the cost of production for most of their exporting products. Explain what will happen ..
The central bank of Country A takes no stabilizing-policy actions. After the short-run impacts of the adverse supply shock become apparent, the central bank of Country B increases the money supply to return the economy to full employment.
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