Problem Set 1 Solutions 1. Calculating Taxes. The Herrera Co. had $246‚000 in taxable income. Using the rates from Table 2.3 in the chapter calculate the company’s income taxes. What is the average tax rate? What is the marginal tax rate? The total amount of income tax is 0.15($50‚000 = $7‚500 + 0.25(($75‚000 – 50‚000) = $6‚250 + 0.34(($100‚000 – 75‚000) = $8‚500 + 0.39(($246‚000 – 100‚000) = $56‚940 Total = $79‚190 The average tax rate is the total amount of tax
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Managerial Economics – Trial Exam – Theoretical Questions Part I: Indicate whether each of the following statements is True (T) or False (F). Comment. (5 Questions‚ Choose 4) A The law of diminishing returns takes effect‚ when a firm’s both marginal product and average product decline after the latter reaching its maximum. False: The law of diminishing returns takes effect when MP reaches its maximum value and starts to diminish “decline”; then‚ MP equals AP when the latter reaches its
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how much do you pay for them in the two countries I think I behave very differently between the countries on these matters. In both countries‚ before subscribing to anything‚ I will do a benchmark in order to know what is the best solution. But the best solution is different between these two countries: Hungary: When I arrived in Budapest‚ one of the first thing I did was buying a phone and to buy a SIM card. I chose Vodafone in Deak Ferenc for a reason I would never think of in France‚ I wanted
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Price elasticity of demand In economics and business studies‚ the price elasticity of demand (PED) is an elasticity that measures the nature and degree of the relationship between changes in quantity demanded of a good and changes in its price. Introduction When the price of a good falls‚ the quantity consumers demand of the good typically rises; if it costs less‚ consumers buy more. Price elasticity of demand measures the responsiveness of a change in quantity demanded for a good or service to
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known as price elasticity. The price elasticity of demand can be influenced by availability of substitutes‚ the level of necessity or luxury‚ amount of income required by the product‚ the time period considered and permanent or temporary price change. In regards to substitute or alternative products‚ the more substitute products there are‚ the bigger the elasticity. In reference to necessity or luxury‚ one must understand that luxury products have a tendency to have a greater elasticity than necessities
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TRANSACTIONS ON ENGINEERING MANAGEMENT‚ VOL. 46‚ NO. 2‚ MAY 1999 Price Elasticity and the Growth of Computer Spending Kar Yan Tam and Kai Lung Hui Abstract—Recent works have indicated that the price of computers is a key factor in explaining the growth of computer spending. However‚ it remains unclear whether the price elasticity of the demand for computers is constant over time. Findings on the pattern of price elasticity will have important implications in the study of information technology
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MANAGERIAL ECONOMICS: Analyzing Strategic Behavior in Business Chapter 2 Demand and Supply MANAGERIAL ECONOMICS: Analyzing Strategic Behavior in Business Thomas J. Webster 1 Lecture Overview • • • • • • • • • • Introduction Law of demand Demand determinants Estimating the market demand equation Consumer surplus Law of supply Supply determinants Producer surplus Market equilibrium Changes in demand and supply: Price and output determination 2 Introduction • In this lecture‚ we
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tests. Now imagine that you have to lug a heavy book bag home just to sit there and do homework for one to three hours. I know how this feels and I’m sure this is what kids my age have to go through every single day at school. Homework is annoying‚ boring and just downright hard. Unfortunately‚ every kid our age has to do it and that’s why I think that there should be no homework. There should absolutely be no homework what’s so ever because it’s too much work‚ it’s completely unfair to kids‚ and afterschool
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Homework 3 1. The project plan must be designed in such a way that the project outcome meets ____A____. A) the objectives of the parent organization B) unauthorized requests for change in the project outcome C) the requirements associated with scope creep D) only the expressed warranties identified in the contract 2. The ____B_____ is a specialized view of the action plan that focuses on who has what responsibility for each project task. A) resource histogram B) linear
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BUOYANCY AND ELASTICITY: DETERMINANTS OF LOCAL TAX SYSTEM ’S PERFORMANCE By: Julhusin B. Jalisan Civil servants and priests‚ soldiers and ballet-dancers‚ schoolmasters and police constables‚ Greek museums and Gothic steeples‚ civil list and services listthe common seed within which all these fabulous beings slumber in embryo is taxation. Karl Marx Every citizen‚ whether young or old‚ wealthy or poor‚ property owners or property-less‚ pays taxes to help finance governmental functions
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