Yep, you read that right, I need math help ASAP. For some reason our public finance and budget professor has us doing work that I can't even find out how to in our textbook I'm hoping since so many of yall are really smart someone will know how the hell to answer these questions and can explain the basics to me.
Suppose that Tang and Wilson must split a fixed 400 pounds of food between
them. Tang's utility function is UT = sqrt (F1) and Wilson's utility function is UW
= 1⁄2 sqrt (F2), where F1 and F2 are pounds of food to Tang and Wilson,
respectively.
Suppose that your neighbor is willing to pay you 100 to do some home repairs for her. You would be willing to do the job for 80, so you strike a deal. Now suppose that the government levies a tax of 25 on all home repair transactions. You pack up your gear and leave your neighbors home because it is no longer worthwhile for you to do the job. As a result of you leaving the job, you do not have to pay the 25 tax. Relate this to the concept of excess burden.
Comments
Came here to give a leg and figure out what the fuck you're talking about
Want me to calculate pressure loss of a 2 1/2 handline with a fog nozzle two stories up with 150 plus feet of hose line Im there. This stuff is like ancient Greek to me.
This is only the official story on tax reporting. You walk away with a cool 100 in your pocket tax free after completing the jobs off the books. When the government takes too much it either A) Reduces margin or B) Increases costs. See california gas. At a certain point people either skirt the system (which is how it usually goes) or exit the market until demand causes the prices to rise sufficiently for people to want to do the job again.
Tang and Wilson need to go on a diet, and you need to just pass this class and not make any assumptions that you will ever see this question again in real life. Beware of the intellectual phillistines and go bring hard work. Economics are bullshit, sales marketing and finance are the golden triangle.
Ive probably helped you out way more than just answering those questions. Go forth and prosper my friend.
By the way the utility function thing sounds like you need to set the two functions equal to each other and find the resultant values.
your two equations are
UT=UW
and
F1+F2=400
2 equations 2 unknowns, go get em tiger. Its been a while since the MBA though so no promises.
I don't think they're necessarily equal.
Some people would say using math to show why socialism cannot truly treat everyone fairly is political.
Start bringing in Taleb Nassim books and see if you freak him out. Youll smoke out the traitors to America quickly.
It's an online class, I will never meet nor talk to this professor.
Well just keep the watch and light a fire. Gondor will heed your call ser
TESU or Excelsior?
Never had anything this abstract but online Calc was a nightmare.
This is 10% basic arithmetic (like really basic) and 90% political editorializing.
Throw in some straw man arguments and you've got solid propaganda!
Teach Tang and Wilson how to make paper airplanes. They will not need the 400 pounds of food because they will be so enthralled with flying their planes they will not be hungry. This leads to the concept of excess burden. So many paper airplanes trying to make it to the field. The first to do so pays no tax.
These problems were written by somebody that hates their life. Why over complicate easy math with stupid wording?
First one is a simple two variable equation.
Second one? I assume the point is that there was 20 available in profit so a 25 tax put the project in the red. There may be a smarter way to say that?
Your goal is to maximize total utility (between both tang and wilson) given your limited food. Four steps:
Excess Burden is also called deadweight loss. Deadweight loss is a loss of economic efficiency that occurs when the free market equilibrium is not achieved (aka, someone is charging a price that does not exist at the intersection of the supply and demand curves):
Let's ignore the tax part of it for a moment... Let's say you're selling 20 VT football tickets, and (for the purposes of this exercise) they must all be sold at the same price, and your goal is maximize revenue. You can either price them at $50 each and sell all 20, price them at $75 each and sell 15, or price them at $100 each and sell 10. Of these three choices, it makes the most sense to price them at $75. If you price them too high or too low, this delta between what you earned and what you could have earned is the deadweight loss.
Going back to the question - the taxes are creating a deadweight loss because they are forcing the customer to pick a price point where the market cannot operate at maximum efficiency.
Less Ancient Greek and getting closer to French. Thanks for breaking that down, this book is awful and being an online class their is no lecture or asking questions easily.
no prob, just updated with answer to question 2
Bar... when are you going to drop the MFing mic? 🎤
I finally found the excess explanation in a video presentation online. But your work on that Food question was brilliant and that was with me still not understanding all the words but understanding the underlying points of it now .
Wow. Discussing Hokie sports and gettin edumacated all in the same. Thanks!
Wow I thought fireman were a bunch of knuckle draggers, look at you trying them harder classes! ;)
bar1990 nailed it though
It's funny, in my experience, I have come across more knuckle dragging police officers than firemen. Firemen just think they're God's gifts to the world of public safety and women in general. Like when you become a fireman your dick becomes magic. HF is an interesting case because he used to be a cop, but also has 4 kids. So maybe it is magic?
You know why God created fireman right?
To put out...............................fires.
So that cops and the military could have hero's too.
See, first, you take UT = sqrt (F1), then you add 5.
Profit.