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- There are many possible ways to limit the number of cabs in a city. The most common method is an explicit quota using a medallion that is kept forever and can be resold. One alternative is to charge a high license fee each year, which is equivalent to the city’s issuing a medallion or license that lasts only a year. A third option is to charge a daily tax on taxicabs. Using figures, compare and contrast the equilibrium under each of these approaches. Discuss who wins and who loses from each plan, considering consumers, drivers, the city, and (if relevant) medallion owners.. As the owner of Barney’s Broilers—a fast-food chain—you see an increase in the demand for broiled chicken as consumers become more health conscious and reduce their consumption of beef and fried foods. As a result, you believe it is necessary to purchase another oven to meet the increased demand. To finance the oven you go to the bank seeking a loan. The loan officer tells you that your revenues of $750,000 are insufficient to support additional debt. To qualify for the loan, Barney’s Broilers’s revenue would need to be $50,000 higher. In developing a strategy to generate the additional revenue, you collect data on the price (in cents) per pound you charge customers and the related quantity of chicken consumed per year in pounds. This information is contained in the file called Q18.xls available online at www.mhhe.com/baye8e It is also available in the ‘Assignments’ section of the class Blackboard page in ‘MBA 6150 HW 3 Q18 data set’ file. Use that data and a log-linear demand…Identify an unconsummated wealth-creating transaction (or a wealth-destroying one) created by some tax, subsidy, price control, or other government policy, and then figure out how to profitably consummate it (or deter it). Estimate how much profit you would earn by consummating (or deterring) it.
- Create a full optimization problem with constraints and employ the Lagrange multiplier technique. One on the consumer side with constraints (utility maximization) and one on the producer side (either production / cost minimization , and or profit maximization.Please select one option which is correct Following assumption is made in continuous review policy a.Demand rate is random b.Demand rate is fixed c.Demand is seasonal d.Lead times are variableTakaful and Karama is a social program that has been launched by the Egyptian government in 2015 to support the disadvantaged and most vulnerable families and elderly citizens. The part of the program that is directed to support families represents a conditional cash transfer that requires families to keep their children in school until they are 18 years old and follow up visits to local health care units to be eligible for receiving the cash transfer. Amira is an Egyptian ten years old child from a poor family who has previously dropped out of school. To be eligible for the fund, her mother enrolled her in school again. Amira is expected to remain in school until she is 18 years old. a) Explain, with the support of illustrative charts, the impact of Amira's returning to school until she is 18 on her potential life earning stream. b) How will that social program impact the national human capital of Egypt in the future, and specifically the characteristics of the Egyptian national…
- The optimal size of government is theoretically determined by following the principal that additional public sector activity is desirable only if the benefits of that activity exceed its opportunity cost. Valuation Problems Because of an absence of a price signal for government goods, it is sometimes very difficult to put a monetary value on the benefits of government goods. Who is paying for them and who is benefitting from themWhat are the values of P1,P2,Q1,Q2 given the two commodity demand and supply model: Qd1=18−3P1+P2 Qs1=−2+4P1 Qd2=12+P1−2P2 Qs2=−2+3P2Assume you are appointed head of the U.S. Department of Homeland Security in charge of preventing illegal crossings along a section of the U.S.-Mexico border. You have a weekly budget of $16,000. As a department head, you get satisfaction (or "utility") from preventing illegal border crossings and you have at your disposal two methods for preventing illegal crossings: 1) Hiring border security personnel to patrol strategic points along the border at a cost of $1000 per week per person or, 2) Purchase surveillance drones to patrol the border at a weekly cost of $3000 per drone. Based on the data attached in the picture below, explain whether you agree or disagree with the following statement made by a subordinate: "Based on the data, the department's "utility" is highest if we employ 16 security personnel because drones are just too expensive."
- Based on arguments made by Friedman and Fama, which of the following requirements must be fulfilled for noise traders to affect markets in equilibrium? Select all that apply. Noise traders must be able to survive economically for a significant period of time All traders must be risk averse Technical trading must be profitable at least some of the time Noise trader behavior must be systematicOrganised business in KwaZulu-Natal has welcomed the R26bn port investments launched in the province, saying they are a major boost for the economy, which has been battered by the Covid19 pandemic and the July 2021 political and civil unrest. The trailblazing investments are designed to give impetus to growing the oceans economy and implementing the comprehensive maritime transport policy announced by transport minister Fikile Mbalula on January 21.They are geared towards advancing SA’s economic interests through Operation Phakisa — a fastresults delivery programme launched in July 2014 to help implement the National Development Plan, with the ultimate goal of boosting economic growth and creating jobs. Durban Chamber of Commerce & Industry president Nigel Ward said the investments will unlock potential in the maritime sector, stimulate economic growth and contribute to the advancement of SA’s economy.“As organised business, we are encouraged to see the minister take the…In terms of the number and dollar volume of transactions, the B2B market is ________ the consumer market. Larger than Smaller than The same size Unrelated to