. Even the most stubborn libertarian might admit that there is a case for government provision or subsidization of a service if that service is a public good or if there are positive externalities associated with its consumption. A. Do primary and secondary education meet the conditions for being public goods? Explain why or why not. B. Are there externalities associated with primary and secondary school attendance? That is, do you benefit from the fact that other people in your community attended school? Tell me what some of these positive externalities are. C. It is rare in economics that one policy approach enhances both efficiency and equity. Explain how free public education might do this. If you like, you might also discuss the limitations on the equity part, because I think that these are pretty important, too.

You own a fast food restaurant and must decide on a pricing strategy for burgers and fries. Marginal production costs are constant at $1 for burgers and $0.50 for fries. The market you serve contains equal numbers of 3 types of consumers called “Average”, “Burger Buffs”, and “Fries Fiends”. Each consumer will purchase at most 1 of each food type. Their valuations of the two goods are listed in the following table.

What are the optimal mixed bundle prices if you allow consumers to buy the meal or to buy a burger or fries separately

You own a fast food restaurant and must decide on a pricing strategy for burgers and fries. Marginal production costs are constant at $1 for burgers and $0.50 for fries. The market you serve contains equal numbers of 3 types of consumers called “Average”, “Burger Buffs”, and “Fries Fiends”. Each consumer will purchase at most 1 of each food type. Their valuations of the two goods are listed in the following table.

What are the optimal mixed bundle prices if you allow consumers to buy the meal or to buy a burger or fries separately

n 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. According to the textbook, which of the following statements is (are) correct?

(x)One goal of the tax was to prevent rich people from buying luxuries.

(y)One goal of the tax was to raise revenue from those who could most easily afford to pay the tax.

(z)The burden of a luxury tax usually falls more on the middle class worker that produces the good than on the wealthy buyer because demand for luxury goods is usually price elastic.

A.(x), (y) and (z)B. (x) and (y) only C.(x) and (z) onlyD.(y) and (z) onlyE.(x) only

Access the EDGAR database (SEC.gov) and obtain the July 2018 form 10K filing (for the year ended May 31, 2018) for NIKE, Inc. Prepare a table that reports the gross margin ratios for NIKE, using the revenues and cost of goods sold data from NIKE's income statement for each of it's most recent three years. Analyze and comment on trend in its gross margin ratio. Use complete sentences and good grammar. Feel free to access the Management Discussion and Analysis in the 10K to see if management had anything to say about the trend. Earn 10 points if you complete all elements of the assignment. You may comment on another students submission but you are not required to do so.

Would arbitrageurs be more effective at taking advantage of mis-pricings in the market if investors in the arbitrageurs’ funds were only able to observe the performance of these funds occasionally (let’s say once a quarter) instead of continuously as is true today? Why?

Suppose you are considering a project that will generate quarterly cash flows of $16429 at the beginning of each quarter for the next 12 years. If the appropriate discount rate for this project is 12%, how much is this project worth today? Round to the nearest cent.

1. Classifying Costs

   The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report.

   Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30
   Materials used in production (including
   	$69,800 of indirect materials)	$753,500
   Direct labor (including $104,700 maintenance salaries)		697,700
   Factory overhead:
   	Supervisor salaries—plant	641,900
   	Heat, light, and power—plant	174,400
   	Sales salaries	432,600
   	Promotional expenses	390,700
   	Insurance and property taxes—plant	188,400
   	Insurance and property taxes—corporate offices	272,100
   	Depreciation—plant and equipment	153,500
   	Depreciation—corporate offices	111,600
   Total		$3,816,400

   Marching Ants Inc.
   Manufacturing Costs
   For the Quarter Ended June 30
   		$
   Factory overhead:
   	$
   Total factory overhead
   Total manufacturing costs		$