The Canadian government will not raise the excise tax rate on beer to 4.7 percent in April 2024 as planned, but it will maintain the rate at 2 percent for next two years. This tax change will benefit brewers and cost the government $153 million over two years.—Bloomberg, March 10, 2024. What is an excise … Continue reading Proposed Halt to Planned Increase in Beer Tax
Category: Eye On–Micro
Apple Antitrust Suit Mirrors Strategy that Beat Microsoft, but Tech Industry has Changed
The U.S. Department of Justice (with 15 state governments) says Apple has monopolized the smartphone market with restrictions on app developers that force consumers to pay higher prices. —Mike Scarcella, Reuters, March 22, 2024. How concentrated is the smartphone market? The answer depends on which market, the global market or the U.S. domestic market. Figure … Continue reading Apple Antitrust Suit Mirrors Strategy that Beat Microsoft, but Tech Industry has Changed
Apple Fined $2 Billion in One of Europe’s Largest Antitrust Actions
The European Union (E.U.) fined Apple €1.84 billion (about $2 billion), saying it set unfair rules for developers of music-streaming apps. The E.U. probe into Apple stemmed from a complaint filed by Spotify, which competes with Apple Music.—Wall Street Journal, March 4, 2024 Data on the music streaming market How big is the music-streaming market … Continue reading Apple Fined $2 Billion in One of Europe’s Largest Antitrust Actions
Investment in Dairy, Egg, and Poultry Processing Projects
The government of Canada will invest $89 million in 49 processing projects that will enable dairy, egg, and poultry producers to boost capacity and be more productive by installing automated equipment and technology. — Glacier FarmMedia, February 6, 2024 How will installing automated equipment and technology change a dairy’s total product curve? Total product (TP) … Continue reading Investment in Dairy, Egg, and Poultry Processing Projects
De Beers Makes Sharp Cuts to Diamond Prices After Sales Grind to Near Halt
During the pandemic, the demand for diamond jewellery boomed, but demand quickly faded as social restriction eased. Many diamond jewellery sellers were left with excess stock that they had bought at high prices. In January 2024, De Beers cut prices by about 10 per cent across the board and up to 25 percent for larger … Continue reading De Beers Makes Sharp Cuts to Diamond Prices After Sales Grind to Near Halt
Federal Judge Blocks JetBlue’s $3.8 Billion Acquisition of Spirit Airlines
In January 2024 , a federal judge blocked JetBlue Airways $3.8 billion deal to buy Spirit Airlines, rejecting a merger that he said would hamper competition and lead to higher fares. The ruling marks a victory for the U.S. Department of Justice, which stopped the JetBlue and Spirit deal from going ahead. The Data: Figure … Continue reading Federal Judge Blocks JetBlue’s $3.8 Billion Acquisition of Spirit Airlines
Cheerios Maker General Mills Cuts Sales As Price Hikes Hammer Demand
Price hikes, undertaken to offset steep input costs, primarily labor costs, have pushed consumers to buy smaller pack sizes for pantry staples and pet food, as well as opt for cheaper private-label alternatives.—Reuters, December 20, 2023 In this post, we look at the price hike that consumers face and use the model of demand and … Continue reading Cheerios Maker General Mills Cuts Sales As Price Hikes Hammer Demand
Where are House Prices Heading?
The average household in the United States and Canada spends around one-third of its income on housing. Two-thirds of households own their home, and three-quarters of homeowners are paying off a mortgage. So, the price of a house is a big deal. What is the average price of a house today? The average price of … Continue reading Where are House Prices Heading?
The Cost of Traffic Congestion
INRIX, Inc., a world leader in transportation analysis, found that in 2021, the average American driver lost 36 hours due to traffic congestion. The most time lost to congestion in 2021 was in Chicago (104 hours), New York City (102 hours), and Philadelphia (90 hours). What is the marginal private cost of an hour lost … Continue reading The Cost of Traffic Congestion
Proposed Billionaire Tax
President Joe Biden is expected to propose a new “Billionaire Minimum Income Tax” (BMIT) at a minimum rate of 20% on U.S. households worth more than $100 million. Over half the revenue could come from those worth more than $1 billion. How many billionaires are in the United States? How did their wealth change in … Continue reading Proposed Billionaire Tax