Profit tax
Revenue tax:
Sales tax is the business tax levied on business revenue. The impact of this on the firm is also depended on elasticity, which is explained below
If demand is more inelastic than supply, consumers bear most of the tax burden. But, if supply is more inelastic than demand, sellers bear most of the tax burden. When the demand is inelastic, consumers are not very responsive to price changes, and the quantity demanded remains relatively constant when the tax is introduced. When a tax is introduced in a market with an inelastic supply—such as, for example, beachfront hotels—sellers have no choice but to accept lower prices for their business.
8. Show either graphically or through a mathematical argument the differ- ence in the effects from...
8. Show either graphically or through a mathematical argument the differ- ence in the effects from a profit tax verses a revenue tax on the amount of outputs/inputs the firm uses. 8. Show either graphically or through a mathematical argument the differ- ence in the effects from a profit tax verses a revenue tax on the amount of outputs/inputs the firm uses.
E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3) Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,500 units at $25; purchases, 3,000 units at $28; operating expenses (excluding income taxes), S94,000; ending inventory per physical count at December 31, 1,000 units; sales price per unit, $75; and average income tax rate, 30%. Required: 1. Prepare income statements under the FIFO, LIFO, and weighted...
Finite state machine (FSM) counter design: Gray codes have a useful property in that consecutive numbers differ in only a single bit position. Table 1 lists a 3-bit modulo 8 Gray code representing the numbers 0 to 7. Design a 3-bit modulo 8 Gray code counter FSM. a) First design and sketch a 3-bit modulo 8 Gray code counter FSM with no inputs and three outputs, the 3-bit signal Q2:0. (A modulo N counter counts from 0 to N −...
please show all mathematical work, details. Required information Problem 8-51 (LO 8-1) (Algo) (The following information applies to the questions displayed below.) In 2020, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $500,000 (married filing jointly). Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates,...
2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in factor markets. Suppose Eleanor earns $650 per week working as an analyst for...
please answer all don't understand Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces the amount of Kit Kats he eats from 10 to 9. Calculate the elasticity for Kit Kats. Are Kit Kats elastic or inelastic? Why? 2. If the price of chocolate increases by 20 percent and the total revenue generated from the sale of chocolate rises even though quantity does not fall, what can be said about the elasticity of chocolate...
4. Country A is located on a small island that is isolated from the outside world. The country has one representative consumer, whose preference is represented by: U (c, l) = ln(c) + ln(l) There is one representative firm in the economy which is owned by the consumer, it produces one type of good that can be used for consumption or government expenditure using capital and labour as inputs. The firm owns the capital it uses and it’s production technology...
help me with these 3 problems please Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, firms earn revenue when purchase in product markets. Suppose Ginny earns $575 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Eric $275 per week to work as a short-order cook. Eric uses $125 to purchase medical services from the Medical Clinic dentify whether...
Problem I. True or False. Please support your answers with proper reasoning, mathematical arguments, or graphs. (15 points, 3 points each) 1. Growth in labor and capital as inputs of production in a small country lead to respectively ambiguous and positive welfare effects for the average person of a country. 2. FDI in a small, open, labor-scarce country has an ultra-protrade production effect. 3. According to Rybczynski theorem, factor growth results in either an ultra-protrade or ultra-antitrade production effect. 4....
Questions are for chapter 7 & 8 from Managerial Economics and Strategy”by J. Perloff and J. Brander, 2ndedition > ZOOM 1 + - of 2 Page < > QUESTIONS FROM CHP 7 1. In terms of their ownership structure, what are the different kinds of firms that are discussed in Chapter 7? How can firms transition from one of these ownership structures to another one? 2. What does "Corporate Social Responsibility" (CSR) mean? Why would firms engage in CSR? 3....