MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
9th Edition
ISBN: 9781259896422
Author: Baye
Publisher: MCG
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Chapter 5, Problem 2CACQ

(a)

To determine

To analyze the fixed costs and variable costs.

(b)

To determine

To analyze the fixed cost of the firm.

(c)

To determine

To analyze the variable cost required to produce 475 units of output.

(d)

To determine

To analyze the amount of variable input used to maximize the profits.

(e)

To determine

To analyze the maximum profit earned by the firm.

(f)

To determine

To analyze the range over which the variable input usage is giving increasing marginal returns to scale.

(g)

To determine

To analyze the range over which the variable input usage is giving decreasing marginal returns to scale.

(h)

To determine

To analyze the range over which the variable input usage is giving negative marginal returns to scale.

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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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