How much tax needs to be added to a pack
The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50 percent, approximately how much tax needs to be added to a $1 pack?
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Proponents of this argument suggest that rating agencies rated companies too harshly at the low end of the rating scale, denying investment grade status to some deserving companies. What are proponents of this argument effectively assuming were th
you buy of marigold seeds each week and $4/lb for every pound you buy thereafter. If your income is $100/week, draw your budget constraint for the composite good and marigold seeds.
On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The machine has an expected useful life of eight years, and Kookaburra Ltd adopts the straight-line method of deprecation. The tax depreciation rate for this type of p
The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year?
Given these data, how would you classify the following firms in terms of their optimal debt-to-equity ratio (high, medium, or low)?
Find a news story from the last 12 months that you believe impacted Aggregate Demand or Aggregate Supply. Provide a brief summary of the story.
Draw a time line to show the cash flows of the project. Compute the project's payback period, net present value (NPV), profitability index (PI), and internal rate of return (IRR). Discuss whether the project should be taken.
What fraction of the incidence falls on consumers? On firms? Suppose the supply elasticity is 0.6. What must the demand elasticity be?
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