12. Who pays the tax?
The following calculator shows the labor market for research assistants in the fictional country of Collegia. The
equilibrium wage is $10.00 per hour, and the equilibrium number of research assistants is 250.
Suppose the government h
8. The relationship between marginal and average costs Aa Aa
Consider the following scenario to understand the relationship between marginal and average values.
Suppose Larry is a professional basketball player, and his game log for free throws can be sum
3. Accounting profit versus economic profit Aa Aa
Deborah lives in San Francisco and runs a business that sells pianos. In an average year, she receives $900,000 from
sales of pianos. Of this sales revenue, she must pay the manufacturer a wholesale cost o
7. Costs of production: Total, average, marginal Aa Aa
Douglas Fur (DF) is a small manufacturer of fakefur boots in Chicago. Its total cost of production is given in the following table.
Fill in the remaining cells of the table.
Quantity of Total Cost M
PRICE [Dollars per bottle] PRICE [Dollars per bottle]
50 Gov't Revenue 50
@4» Tax x
100 200 300 400 500 600 100 200 300 400 500 600
QUANTITY [Bottles per year] QUANTITY [Bottles per year]
Explanation: Close A
If demand is given