Trey Leeman,Operations Manager at National Consumers,Inc

question 11

Multiple Choice

Trey Leeman,Operations Manager at National Consumers,Inc.(NCI) ,is evaluating alternatives for increasing capacity at NCI's Fountain Hill plant.He has identified four alternatives,and has constructed the following payoff table which shows payoffs (in $1,000,000's) for the three possible levels of market demand: If Trey uses the Hurwicz criterion with alpha = 0.1,the appropriate alternative would be: ___.

• A)lease new equipment
• B)purchase new equipment
• C)add third shift
• D)do nothing
• E)do everything

Comprehend the impact of tax policies on economic behavior, including tax incidence and tax shifting.

Analyze the effects of specific taxes, such as luxury taxes and payroll taxes, on market behavior and economic equilibrium.

Evaluate the burden of tax shifting and tax incidence in various economic scenarios.

Understand the concept of elasticity in labor markets and its relevance to tax incidence and employer behavior.