Principles of Microeconomics
Solutions
Principles of Microeconomics
Pretzel stands in New York City are a perfectly competitive industry in long-run equilibrium. One day, the city starts imposing a $100 per month tax on each stand. How does this policy affect the number of pretzels consumed in the short run and the long run?
a. down in the short run, no change in the long run
b. up in the short run, no change in the long run
c. no change in the short run, down in the long run
d. no change in the short run, up in the long run
Option (c):
Since the imposition of tax is considered a fixed cost in the short run, it would not be affected. But the tax becomes a variable cost in the long run. Thus, imposing tax leads to an increase in the marginal cost, which in turn leads to reduction in the quantity. Thus, option ‘c’ is correct.
Option (a):
Change in the fixed cost does not alter the equilibrium quantity. The tax imposition in the short run affects only the fixed cost...
Chapter 14 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addDraw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services...
Principles of Macroeconomics (MindTap Course List)
A factory uses three production lines to manufacture cans of a certain type. The accompanying table gives perce...
Probability and Statistics for Engineering and the Sciences
(International Trade) Why does international trade occur? What does it mean to run a deficit in the merchandise...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
A survey conducted by Better Homes and Gardens Real Estate LLC showed that one in five U.S. homeowners have eit...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Lets consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita,...
Brief Principles of Macroeconomics (MindTap Course List)
What are the two main causes of market failure? Give an example of each.
Principles of Economics (MindTap Course List)
Appendix 1 Financial statements from an end-of-period spreadsheet Based on the data in Exercise 4-23, prepare a...
Financial & Managerial Accounting
CAPM AND PORTFOLIO RETURN You have been managing a 5 million portfolio that has a beta of 1.15 and a required r...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
What are the major types of teams?
Foundations of Business (MindTap Course List)
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost o...
Cornerstones of Financial Accounting
CONDUCTING A FINANCIAL RATIO ANALYSIS ON HP INC. Use online resources to work on this chapters questions. Pleas...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
To focus on the you view, should writers scrub all uses of land from their writing? Why or why not?
Essentials of Business Communication (MindTap Course List)
Why are most large companies like Microsoft, PepsiCo, Caterpillar, and AutoZone organized as corporations?
Corporate Financial Accounting
Segregation of duties consists of separating what four basic functions? Briefly define each function.
Accounting Information Systems
Exploring the Capital Structures for Four Restaurant Companies Use online resources to work on this chapter's q...
Fundamentals of Financial Management (MindTap Course List)
Bonds Payable has a balance of 5,000,000 and Discount on Bonds Payable has a balance of 150,000. If the issuing...
Financial And Managerial Accounting
What does the invisible hand of the marketplace do?
Essentials of Economics (MindTap Course List)
Equipment was acquired at the beginning of the year at a cost of 600,000. The equipment was depreciated using t...
Financial Accounting
EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March ...
College Accounting, Chapters 1-27
You are a manager, and you believe that the expense reimbursement system for salespeople is far too slow, takin...
Management, Loose-Leaf Version
Assume the same facts as in E17-19, except that Rix cannot directly observe the stand-alone selling prices of t...
Intermediate Accounting: Reporting And Analysis
Explain why implementation, evaluation, and control of the marketing plan are necessary
MKTG 12:STUDENT ED.-TEXT
What are the three ethical principles that may provide some guidance for ethical responsibility?
Accounting Information Systems
Direct Materials and Direct Labor Budgets Willison Company produces stuffed toy animals; one of these is Betty ...
Managerial Accounting: The Cornerstone of Business Decision-Making
a. What does a debit balance in Cash Short and Over mean? b. Where does a debit balance in Cash Short and Over ...
College Accounting (Book Only): A Career Approach
Describe the four variables of the marketing mix.
Contemporary Marketing
A random telephone survey of 1021 adults (aged 18 and older) was conducted by Opinion Research Corporation on b...
Statistics for Business & Economics, Revised (MindTap Course List)
Explain how the joint profit-maximizing price of colluding firms under oligopoly is determined. How about outpu...
Exploring Economics
If investors aversion to risk increased, would the risk premium on a high-beta stock increase by more or less t...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Kelley Company has completed the following October sales and purchases journals: a. Total and post the journals...
College Accounting (Book Only): A Career Approach
What behavioral problems are associated with setting a budget too loosely?
Financial & Managerial Accounting
DIVIDENDS Bowles Sporting Inc. is prepared to report the following 2015 income statement (shown in thousands of...
Fundamentals of Financial Management (MindTap Course List)
Ocular Realty Co. pays weekly salaries of 16,600 on Friday for a five-day workweek ending on that day. Journali...
Financial Accounting
Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a...
Accounting (Text Only)
Why might economic advisers to the president disagree about a question of policy?
Principles of Macroeconomics (MindTap Course List)
Which depreciation method is used for tax purposes?
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
How does the Sarbanes-Oxley Act of 2002 affect the GL/BR process?
Pkg Acc Infor Systems MS VISIO CD
Illustrate increasing opportunity costs (for one good) in a table similar to the one in Exhibit 2(a). Next, dra...
Microeconomics
Diagrammatically show what happens when the institutional constraints in the economy become less effective.
Economics (MindTap Course List)
Key Concept: Effluent Tax Which of the following is true about incentive-based regulations? a. They set an envi...
Economics For Today
Define each of the following terms: a. Contraction b. Business cycle c. Trough d. Disposable income e. Net dome...
Macroeconomics
What is a segment, and why would a company want to measure profits of segments?
Cornerstones of Cost Management (Cornerstones Series)
What is the benefit of developing performance measures that focus on cost versus purchase price?
Purchasing and Supply Chain Management
Internal control of cash receipts The mailroom employees send all remittances and remittance advices to the cas...
Corporate Financial Accounting
Financial information Yahoo.com’s (YHOO) finance Internet site provides summary financial information about pub...
Survey of Accounting (Accounting I)
Perform a sensitivity analysis on the probability of a great market. To do this, enter formulas in cells B9 and...
Practical Management Science
In September 2019, Painter Wax Corporation began operations in a state that requires new employers of one or mo...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
