You manage a ball-bearing factory for a company that successfully lobbies Congress to place a tariff on imported ball-bearings. As a result: Ⓒa. both your company and your customers will be better off. Ob. your company will be better off, but your customers will be unaffected. OC. your company will be unaffected, but your customers will be worse off O d. your company will be better off, and your customers will be worse off
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- Firm A and firm B are battling for market share in two separate markets.Market I is worth $30 million in revenue; market II is worth $18 million.Firm A must decide how to allocate its three salespersons between themarkets; firm B has only two salespersons to allocate. Each firm’srevenue share in each market is proportional to the number ofsalespeople the firm assigns there. For example, if firm A puts twosalespersons and firm B puts one salesperson in market I, A’s revenuefrom this market is [2/(2 1)]$30 $20 million and B’s revenue is theremaining $10 million. (The firms split a market equally if neitherassigns a salesperson to it.) Each firm is solely interested in maximizingthe total revenue it obtains from the two markets.a. Compute the complete payoff table. (Firm A has four possibleallocations: 3–0, 2–1, 1–2, and 0–3. Firm B has three allocations: 2–0,1–1, and 0–2.) Is this a constant-sum game?b. Does either firm have a dominant strategy (or dominated strategies)?What is the…Consider a labor market in which workers are paid the minimum wage. When will it matter for tax incidence whether a payroll tax is imposed on workers or on employers? A.Normally, the statutory imposition of a tax is irrelevant to the actual economic incidence because the party on whom legal liability rests will shift the burden if it can, and the less-elastic party will bear most of the burden of the tax. However, a tax imposed on employers can be shifted to workers earning the minimum wage; employers are not legally constrained from lowering wages further, so they will not bear the full burden. On the other hand, a tax imposed on workers will not be at least partially shifted to employers if the demand for labor is inelastic. Therefore, minimum-wage employers with elastic demand for labor are likely to share some of the burden of a tax imposed on employees. B.Normally, the statutory imposition of a tax is relevant to the actual economic incidence because the party on whom legal…How might an African government apply Porter's National Competitive Advantage Diamond to further spur cellular phone specialization within a country?
- Suppose you’re trying to get your friends to go todinner with you. Would it be wiser to frame thedecision as costing only $5 more than the foodthey’d make for themselves, or that it will cost$5 less than every other restaurant around town?Recently in the City of Seoul, building contractors lobbied the city council to pass an ordinace requiring all people working on residential dwellings be licensed by the city. Why would the contractors lobby for this requirement? A. to create legal barrier to entry B. to reduce the cost of building dwellings C. to guarantee that work on dwellings is of high quality D. to avoid informal settlersThe government imposes a minimum wage $w on the price of labor, where the market demand and supply are Q = 300 – p and Q = p respectively. (a What level of minimum wage maximizes PS (the surplus to producers of labor, that is, the welfare of the employee pool)? Assume the best case scenario where the candidate workers whose willingness-to-accept- wages are lowest get the jobs in the rationing process b. For w = 250, calculate the PS for the worst case scenario, where the candidate workers whose willingness-to-accept wages are highest end up getting the jobs in the rationing process.
- An individual's demand for physician office visits per year is Q=10-(1/25)P, where Pis the price of an office visit. The marginal cost of producing an office visit is $100.a. Ifindividuals pay full price for obtaining medical services, how many office visits will they make peryearb.Ifindividuals must pay only a $25 copayment for each office visit, how many office visits will they make per year?c.What is the deadweight loss to society associated with not charging individuals for the fall cost of their health care?Consider the market for rubber bands.a. If this market has very elastic supply and veryinelastic demand, how would the burden of a taxon rubber bands be shared between consumersand producers? Use the tools of consumer surplusand producer surplus in your answer.b. If this market has very inelastic supply and veryelastic demand, how would the burden of a taxon rubber bands be shared between consumersand producers? Contrast your answer with youranswer to part (a).Only Graph it please! “Summer open-air concerts are a pure public good in a small town. The average cost of each concert per night is constant at $500. Explain why it would be inefficient to require each resident of a community to hire their own orchestra at the $500 rate for each concert. Assuming that the marginal benefit of the first concert is $25 for each of the 1,000 residents of the community, prove that it will be efficient to have more than one concert per summer. If the concert were financed with voluntary contributions, what conditions would have to prevail to achieve the efficient number of concerts per summer?” Identify your final group answer with the subject "Final Response".
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