Consider two markets that are similar in almost every way. Demand in one market is quite elastic though while demand in the other is quite inelastic. They have the same supply and the same equilibrium price and quantity. Suppose that the same size tax is placed on each market. Sort the effects of the tax based on their relative size in the different markets. If they are of equal size, leave the item unplaced. Pseller is the price the seller receives after the tax, Pbuyer is the price the buyer pays after the tax, and Qtax is the quantity produced after the tax. A. Pseller
B. Producer surplus after the tax is imposed
C. Government revenue
D. Qtax
E. Pbuyer
1. Smaller when demand is elastic
2. Smaller when demand is inelastic

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer

Which of the following economic behaviors causes scarcity? a limited supply and unlimited demand b limited supply and unlimited credit c limited supply and limited regulation d limited supply and limited incentives