7. Lump-Sum TaxThe city government is considering two tax proposals:⚫A lump-sum tax of $300 on each producer of hamburgers.⚫A tax of $1 per burger, paid by producers of hamburgers.Which of the following statements is true as a result of the lump-sum tax? Check all that apply.Average variable cost will remain unchanged.Average total cost will increase.Average fixed cost will increase.Marginal cost will increase.Which of the following statements is true as a result of the per-burger tax? Check all that apply.Average total cost will increase.Average variable cost will increase.Average fixed cost will increase.Marginal cost will remain unchanged.

As a result of lumpsum tax-Average total cost will increaseAverage fixed cost will increase As a…

Answered: 7. Lump-Sum Tax The city government is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.
What is the operating surplus of the following data Rent is $600, royalty is $320, interest is $80 and the profits is $400
6) The only variable input a janitorial service uses to clean offices is workers who are paid a wage, w, of $ 20 an hour. Each worker can clean 10 offices in an hour. a) Determine the average variable cost and the marginal cost of cleaning one more office. b) Draw diagram of the total cost, average variable cost and marginal cost curves showing their relationships. c) How will these curves change with a lump-sum franchise tax of $50?
When economists talk about a barrier to entry, they are referring to a.the downward-sloping portion of the long-run average total cost curve. b.a factor that makes it difficult for potential competitors to enter a market. c.the opportunity cost of equity capital that is incurred by a firm producing at minimum total cost. d.the declining output experienced as additional units of a variable input are used with a given amount of a fixed input.
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
5. Rusty Trawler imports oil from Saudi Arabia. His cost function (for purchasing and delivering the oil) is TC = 5000+.1Q² where Q is the number of barrels of oil delivered. He may sell all the oil he can deliver for $60 per barrel (so TR = 60Q). Given these conditions, what are Rusty's maximum possible profits? a) $0 b) $300 c) $2,500 d) $4,000
Business Selling Price Total Sold Cost of Goods Sold Sales Profit First Aid Kits 28.95 25 400 723.75 323.75 Leg Casts 50 10 300 500 200 Rubbing Liniment 12 5 5 60 55 Resuscitators 70 2 130 140 10 Sun Burn Ointment 25 25 1000 625 -375 Question #1 Economists are always calculating the costs and the benefits of alternatives. Economic profit, as distinct from the accounting profit you calculated in question 1, is the additional profit that is earned by choosing the best, rather than the second best, profit opportunity. Profit maximizers should always calculate economic as well as accounting profit. What is the economic profit you would receive if you decided to purchase the business's best profit maker?
Quèstion 13 Suppose that the price changed from P1 to P2 in the graph below. Sdomestic A P1 G H P2 B K Ddomestic Q1 QO Q2 Using capital letters and reading from left to right and top to bottom (e.g. AGH or HELJK identify the following: Total variable production cost of producing Qo units (at price P1): New variable production cost of producing Q1 units (at price P2): Change in total variable production from reducing production for Qo to Q1
Homework (Ch 06) Back to Assignment Attempts Do No Harm / 1 3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. O The future supply of rental housing units increases. O Black markets develop. O The quality of rental housing units falls.
I'm not sure if I answered these questions correctly.
QUESTION 15 Imagine a small juice producer named " Bilberry Infused Beverages" known for its refreshing beverages. The owner, Louis, keeps track of the production costs. Recently he decided to expand his operations and produce more Juices to meet the increasing demand. Table 15.1 below shows the data he has collected: Complete Table 15.1 below and use the information to answer the question that follows. Table 15:1 Production Costs for Bilberry Infused Beverages (4 Marks) Output Total cost Fixed cost Variable Marginal Average cost cost cost Average fixed cost 0 30 O 1 10 2 18 3 22 4 5 64 B 832 8 76 7 8 15 15 What is the marginal cost of producing the 8th unit of the good? a) 4 b) 10 c) 12 d) 29

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