Bundle: Microeconomic Theory: Basic Principles and Extensions, 12th + MindTap Economics, 1 term (6 months) Printed Access Card
Bundle: Microeconomic Theory: Basic Principles and Extensions, 12th + MindTap Economics, 1 term (6 months) Printed Access Card
12th Edition
ISBN: 9781337198202
Author: NICHOLSON, Walter, Snyder, Christopher M.
Publisher: Cengage Learning
Question
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Chapter 2, Problem 2.2P

(a)

To determine

To compute: The level of output to maximize profit and calculating profit, thereof.

(b)

To determine

To show: The second-order condition is satisfied in (a).

(c)

To determine

To discuss: If ‘marginal revenue is equal to marginal cost’ rule is followed in the calculation.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.
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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

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Bundle: Microeconomic Theory: Basic Principles and Extensions, 12th + MindTap Economics, 1 term (6 months) Printed Access Card

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