Natalie's estate includes the following assets: Fair Market Value
Date of Death Six Months Later
Office building $14,200,000 $13,000,000
Stock in ABC Corporation 635,000 633,000
In order to pay expenses, the executor of the estate sells the ABC stock for $630,000 five months after his death.
a. If the § 2032 election is made, Natalie's gross estate includes $
The value of the property on the date of its transfer generally determines the amount that is subject to the gift tax or the estate tax. Under certain conditions, however, an executor can elect to value estate assets on the alternate valuation date. The election is made by the executor of the estate and is irrevocable.
b. Assume the Green stock is sold for $650,000 seven months (rather than five months) after Natalie's death. If the § 2032 election is made, Natalie's gross estate includes $ 6440000
c. If the § 2032 election is not made, the gross estate includes $ 6560000

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do