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Unformatted text preview: e = d. y = 4 x .5 e. 2 3 3 log( ) 4 ( ) 2 x x y f x x + + = = (Also, what must the domain of f(x) be in order that f(x) be defined?) 4. Taxes are assigned by the formula: T = -50+.001I 2 , where I is income and T are taxes. a. Calculate taxes paid at I=$0, $100, $1000. b. At these same income levels, calculate the marginal tax rate (dT/dI) and the average tax rate (T/I) and distinguish between the two. c. Graph the tax (T) and after-tax income (I-T) against income I (on the horizontal axis). d. What income, I*, maximizes after-tax income (I-T)? Interpret the first order conditions (equation giving the optimal solution) in terms of marginal benefit and marginal cost to an earner of another dollar of income, I?...
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- Winter '08