Q: tices are described in the following scenarios: A. Bundling B. Tying sales C. Exclusive dealings 1.…
A: Product tying is a practice in which a buyer has to purchase an additional good(tied good) in order…
Q: ibe how a change in the exchange rate nay affect the pricing of a company. How an the company profit…
A: Depreciation is an abatement in a resource's worth, might be brought about by various different…
Q: Consider the following information: TC = 20 + 5Q + Q2 Q = 25 – P Where TC is total cost, Q is the…
A: Total revenue refers to price multiplied by quantity. Profit refers to the difference between total…
Q: Question 3 (i) Explain the relationship between the current account balance given by exports (X)…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Economics Describe two of the factors that make up monopolies.
A:
Q: his is a two-player, simultaneous one-move game represented as a game table (normal form). a) What…
A: "Since you have posted a question with multiple subparts,we will solve first three subparts for…
Q: 3. What strategies can small-scale producers adopt to compete with corporations that have very large…
A: Perfectly competitive market: In a perfectly competitive market there are many buyers and many…
Q: Answer True or False to the following statement. Explain your answer. “The interest parity…
A: In a foreign exchange market equilibrium, the loan cost equality condition infers that the normal…
Q: You have been hired as a Marco Economist by the President of the United States to help evaluate the…
A: When Fed chairman increasing interest rate again on the ground that the economy is growing strong…
Q: The demand for tobacco is price inelastic. Suppose there is a drought that destroys a large portion…
A: Elasticity measures the responsiveness of quantity demanded with respect to change in price. Lesser…
Q: In the simple two period model of Chapter 9, we demonstrated lian equivalence. In your own word,…
A: *Answer: Answers Ricardian equivalence Theory- This theory says that finacing government…
Q: i need this in word not handwritten Q7. Assume that in 2015, the following prevails in the…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: (i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which…
A: (i) Difference between headline fiscal deficit and primary fiscal deficit (a) A headline fiscal…
Q: 1. given the following game in extensive form:
A: Given, An Extensive Form game Two Players : Player 1 and Player 2Player 1 has two strategies : A…
Q: The supply curve for the production of oil in Sanaton is shown in the diagram below. Supply based on…
A: externalities is the spillover effects caused by an economic activities which have negative as well…
Q: Before the virus hits, the Good A market is on D1 and S1. The market price is P1. Suppose the income…
A:
Q: How can we conserve natural resources and sustain our environment?
A: Though natural resources are available in free but they also tend to finish.
Q: Explain the LM schedule, and how the LM curve is derived in a Closed Economy.
A: LM stands for money liquidity in macroeconomic terms. The demand for money falls/decrease as there…
Q: Compare between the corporation and the joint stock company and compare between the LLC and the…
A: In certain ways, a corporation and a joint stock company are different. A corporation is founded by…
Q: Explain unemployment rate.
A: Unemployment is the phenomenon which states that people who are willing and able to work are unable…
Q: Define the term Inflation.
A: Many a times consumers are willing to pay more for a particular product, this increases the demand…
Q: The BLU estimator of the slope parameter under heteroskedasticity is an example of, a biased…
A: Answer is given below
Q: proportional tax, sometimes referred to as a flat tax, is a kind of income tax wherein all taxpayers…
A: Proportional tax is that the taxing mechanism in which the taxing authority charges constant rate of…
Q: Question 2 Consider the sequential game in which the principal P first makes her choice between…
A: Answer -
Q: Which of the following statements is FALSE regarding common goods? Multiple Choice Water is an…
A: In economics, a public good refers to a goods or service that's created accessible to all or any…
Q: Name and describe the advantages and disadvantages of the different types of joint venturing when…
A: A joint venture can be described as an association of companies that come together to form a single…
Q: QUESTION 14 Consider the market for PlayStation video games. Ceteris paribus, what effect will a…
A: Note: You have uploaded two questions at a time. Hence, we shall solve only the first one for you.…
Q: Compare the three alternative global pricingstrategies.
A: Global pricing strategies involve only two things, one is the cost of the product and the other one…
Q: Asymmetric information in the loan market is a potential problem usually resulting from __________.…
A: Asymmetric information is a situation that arises when one party is more information than another…
Q: Consider the education market of a country which is perfectly competitive. The demand equation for…
A: Consider the education market of a country which is perfectly competitive. The demand equation for…
Q: Which is a benefit of the Central American Free Trade Zone agreement? It allows all participants to…
A: The answer is - It links regional power supplies between nations.
Q: A government budget surplus is __________. Question 22 options: a situation in which the amount…
A: Government budget balance depends on how much government is giving and how much it is getting.
Q: Question 7 (i) List and explain briefly the three reasons for holding money according to Keynesian…
A: (i) Three reason for holding money:- a) Transactional motive:- The demand for cash for financial…
Q: Coffee and doughnuts are complements in consumption. Suppose bad weather in the coffee producing…
A: The curve that depicts various quantities of goods and services being supplied at various price…
Q: Define Gross domestic product (GDP)?
A: Gross Domestic Product is the sum of consumption spending, investment spending, government spending…
Q: Define the term balance of trade.
A: Trade is the exchange of goods and services in return for money.
Q: True or false: "Game theory provides insight into decision-making by companies when company A’s…
A: Game theory deals to provide a rational decision to both the parties that are participating. Both…
Q: Jarviland is a small country with only two sectors: microchips and computers. This year, the total…
A: Given: The total revenue of the microchips sector is = ₤3 billion The revenue from sales to the…
Q: The monetary base is the sum of currency in circulation and bank reserves True or False?…
A: The central bank of a nation controls the reserve ratio and interest rates which affect the lending…
Q: How do interest rates affect economic growth? Which federal agency influences interest rates?
A: GDP: Gross domestic product or what is commonly known as GDP is the term used to measure the…
Q: Explain this concept and give one practical example(oligopoly)
A: An oligopoly market is one in which there are multiple vendors (or firms) for trading a specific…
Q: Economics what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7…
A: The equivalent uniform annual cost(EUAC) is the yearly expense of buying, working, and keeping a…
Q: Discuss how channel members interact and how they organize to perform the work of the channel.
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: compare to the actual data points on the graph? Which model do you think fits the data best and why?
A: Solution 1) Consider the above given that a) With the given endpoints viz.`(x1, y1)= (0,576673) and…
Q: Identify whether the following schenarios describe positive or negative externalites or neither. A.…
A: Externality can be of 2 types: positive externality and negative externality depending upon their…
Q: Consider the input output table below Table (Inter) final Total (Agric) (Manuf) (Mining)demand…
A: Given information
Q: 11. Assume that in an economy the total money supply, Ms, is SR100; the quantity of output, Q, is 50…
A: The formula for finding the income velocity of money is V = (P * Q) / M where, P is the price of…
Q: The table below shows the demand and cost information for a natural monopoly. Use the information in…
A: Note: There are multiple sub parts to the question. Hence, we shall answer only the first three sub…
Q: The figure below the nypothetical domesic supply and demand for baseball caps In the country of…
A: The world price of the good is 3 which is less than the equilibrium price =5.
Q: government announces a green budget where they will provide zero interest loans for private sector…
A: The positive impàct on inclusive demand is predicted by the multiplier model, which predicts that a…
Step by step
Solved in 2 steps
- Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 6900. Brass Monkey, like Muskrat, has a single public good, the town skating rink, and a single private good, Labatt Ale. Everyone's utility function is U i = X i - 81 Y where x; is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters. The price of ale is $1 per bottle. The cost of the skating rink to the city is $6 per square meter. Everyone has an income of at least $5,000. What is the Pareto efficient size for the town skating rink?Sylvester and Rachel live together on an island with two goods, food and shelter. Food is a private good and shelter is a public good. The utility function of Sylvester is U= Fs + 2(Zs + Zr) where Fs is the amount of food he buys, Zs is the amount of shelter he buys and Zr is the amount of shelter Rachel buys. Similarly, the utility function of Rachel is U= Fr + Zs + Zr where Fris the amount of food she buys. Suppose the price of food is 10 and both Sylvester and Rachel have 100 to spend. Suppose also that it is not possible for Sylvester and Rachel to reach any kind of agreement. a. Determine the quantity of shelter they will buy and the efficient quantity of shelter if the price of shelter is 5? (Enter your answer in whole number.) Quantity of Shelter: 120 units Efficient b. What is the quantity of shelter they will buy if the price of the shelter is 15? (Round your answer to 2 decimal places (e.g., 32.16).) Quantity of Shelter: 30 units Not Efficient c. What is the quantity of…Consider a two-good economy with one private and one public good. There are four consumers in this economy who contribute to public good provision. The price of the private good is $1 and the demand function of the public good for each consumer is as follows: p1 = 20 - 2G, p2 = 30-(5/10)G, p3 = 100-(G/2) and p4 = 60-G where G is the number of units of the public good and p^i is the price of each unit for consumer i in dollars. The cost of providing one extra unit of the public good is (alpha). (a) With 170 < alpha < 210, what is the optimal level of provision of the public good? Show the optimal point on a graph. (b) Is there a possibility that the public good is not supplied at all? Why? (c) If the public good is not supplied at all, what is the size of the deadweight loss due to this market failure? (d) If at least one person contributes, for what values of the public good will be supplied?
- Just north of the town of Muskrat, Ontario is the town of Brass Monkey, population 4,500. Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale. Everyone's utility function is UXX₁, XY) = X; - 81/Y, where X; is the number of bottles of ale consumed by i and Yis the size of the skating rink in square meters. The price of ale is $1 per bottle. The cost of the skating rink to the city is $5 per square meter. Everyone has an income of at least $5,000. What is the Pareto efficient size for the town skating rink? 270 square meters. 140 square meters. 195 square meters. 390 square meters. 545 square meters.Suppose demand for a public park (assume it is a pure public good) for two groups of consumers (A and B) is given by:QA = 4 - 0.5PQB = 7 - Pwhere Q is the number of acres each group would like to see incorporated into the park. If the marginal cost to provide the park is a constant $3/acre, what is the socially efficient number of acres for the park?(12) Consider a market with social marginal benefit (quantity demanded) given by SMB = 600 – Q and private marginal cost (quantity supplied) given by PMC = Q. Social marginal cost is given by SMC = 200 + Q. Assume SMB = PMB. (a) Graph these SMB, SMC, and PMC curves. (b) Find the market equilibrium price and quantity. (c) Find the socially optimal equilibrium price and quantity.
- Three individuals, Juan, Madison and Hassan, make up the entire market for some private good. Their marginal willingness-to-pay functions for this good are shown below. The marginal cost of providing this good is MC =25 + 0.25Q Juan MWTP = 100 -Q Madison MWTP = 210 - 2.10 Hassan MWTP = 240 - 2.4Q a) Derive the aggregate MWTP function for this private good b) What is the socially-efficient price and quantity? Graph the aggregate MWTP and MC curve, and identify the socially-efficient price and quantity. c) How much of this good will Juan, Madison and Hassan each decide to consume at this price? d) Compute total willingness-to-pay, total cost and net value at the socially-efficient outcome.An economy consists of two individuals, A and B and two goods, a private good, which is called good 1, and a public good, which is called good 2. Each individual i = A, B is endowed with 24 units of time, which can be used to produce an amount of a private good at a labour cost of a units of time, and an amount of a public good at a labour cost of 2x units of time. Individual i's utility function is given by u(xi, x2) = (xi)¹/2 (g)¹/2, for both i = A, B and where g denotes the aggregate provision of the public good, i.e. g = x2 + x2. (a) Derive the allocation that maximises utilitarian welfare (i.e. the sum of both individ- ual's utility functions). 3 (b) Suppose both individuals decide on provision of feasible bundles (x,x) and (x,x) simultaneously and have full information about the other individual's utility function. Derive the Nash equilibrium of the noncooperative game. (c) Explain concisely (max three sentences) why there is usually under-provision of the public good (you can…Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Pe and Qe. On the graph, shade in the deadweight loss at the market output.
- Suppose there are three consumers of a public good with the following marginal benefits of consumption related to the quantity of the public good provided: Consumer 1: MB1 = 5 – 2Q Consumer 2: MB2 = 4 – Q Consumer 3: MB3 = 3 – Q Calculate and draw the total marginal benefit function of the public good in a fully labelled diagram. If the marginal cost of producing the public good is MC = 2Q, what is the efficient quantity and how much should each consumer contribute to its provision if it were to provided at the efficient level (assuming the non-rival and non-excludable problems could be resolved)?1. Consider two consumers who each choose how to split their income, m, between a private good, x, and a public good. The amount of public good consumer į buys is denoted by g, and the total amount of public good is G. The price of each good is 1 and the consumer's utility functions are as below: u, = 2 log(x,)+log(G) uz = log(x,)+ log(G) a) By referring to the utility functions, explain why goodG satisfies the definition of a public good. b) Find each individual's best-response function. c) Find the Nash Equilibrium amount of public goods purchased. d) Use the Samuelson rule to show that the level of public goods purchased in the Nash Equilibrium is inefficient. Explain your answer.Consider the market for plastic straws, in which production causes pollution (air pollution, waste pollution). Quantity demanded is given by Qd=6200-4*P Marginal Private Costs (determines individual supply costs of producers) is given by Qs=2*MPC-1000. Marginal Social Costs (MPC plus the costs of externalities) is given by Qs=2*MPC-1300. Plot these 3 curves on a graph with 6 points at Q=1000, 1100, 1200, 1300, 1400, 1500 What is the deadweight loss if only free market forces are at play (i.e. externalities are not considered by the producers)?