Question: Economists have long argued that if you want to tax
Economists have long argued that if you want to tax away excess profits without affecting locative efficiency, you should use a lump-sum tax instead of an excise or sales tax. Use the concepts developed in the chapter to support this position.
Answer to relevant Questions"It is often impossible to obtain precise information about the pattern of future revenues, costs, and interest rates. Therefore, the process of economic optimization is futile." Discuss this statement.A. Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), profit (π), and marginal profit (Me) in the following table:B. At what output level is profit ...Giant Screen TV, Inc., is a Miami-based importer and distributor of 60-inch screen HDTVs for residential and commercial customers. Revenue and cost relations are as follows:TR = $1,800Q - $0.006Q2MR = ∂TR/∂Q = $1,800 - ...The United States is a big exporter of animal feeds, corn, meat, fruits, vegetables and other agricultural commodities. Explain how foreign trade affects the domestic supply of such products.Demand and supply conditions in the market for unskilled labor are important concerns to business and government decision makers. Consider the case of a federally mandated minimum wage set above the equilibrium, or market ...
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