Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…
A: Natural resources are the raw materials that are used by the business organizations in order to…
Q: I need help. If you can explain the process and not just give the solution, I would appreciate it,…
A: Marginal price (MC) is calculated by taking the amendment in total cost between 2 levels of output…
Q: Distinguish between implicit and explicit costs. How is it possible to have positive accounting…
A: Any cost that has already occurred but is not shown or reported as a distinct item is referred to as…
Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…
A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…
Q: Galaxy, a multinational corporation, has two plants, one in the United States and the other in…
A: Given, Wage in Mexico = USD 5 per hour Wage in the US = $25 per hour The productivity per worker in…
Q: Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and…
A: Answer: Explicit cost: It is the payment made to outsiders for hiring factor services. It involves…
Q: Economist describe short run decisions as constrained decisions while long run decision are…
A: In the short run, few costs are fixed and few are variable but in the long run their will be no…
Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…
A: Implicit cost is the opportunity cost.
Q: If a firm wanted to know how much it would save by producing one less unit of output, it would look…
A: TC (Total) is the cost which is incurred by a firm in producing some specific level of output. It is…
Q: demonstrate and explain how costs concepts help in managing production between the shortrun and…
A: When businesses change output levels over time in response to anticipated economic gains or losses,…
Q: A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu…
A: The sunk costs are the expenditure incurred by a firm or business that is non-recoverable or on…
Q: Explain the Salient features of Cobb Douglas Production Function.
A: Production function is a term used in economics to describe the difference between output and input…
Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…
A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…
Q: Galaxy, a multinational corporation, has two plants, one in the United States and the other in…
A: Wage in Mexico = US$5/ day wage in the U.S. is $25/ hour Productivity Per worker is Mexico = 200…
Q: If the ATC curve is continually declining, what does this imply about MC curve? Explain your answer
A: Average Total Cost: The average total cost is the cost per unit of output. It can be determined by…
Q: 1. Calculate the Lagrange multiplier of the cost minimization problem with a Cobb- Douglas…
A: The Cobb-Douglas (CD) production function is an economic production function that defines a firm's…
Q: A marginal profit curve equation is : MP= −2Q^2 + 160Q + 2145. You are required to determine the…
A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…
Q: Prepare a segmented income statement for Mike's Auto Center using the 2018 Actual results. Of the…
A: Mike Auto Car Segment Income Statement
Q: Define Industrial economies. of industrial structures?
A: Industrial structure refers to the structure specially designed to fulfill a particular function…
Q: For Questions 31 and 32, use the following information: Consider a firm minimising the cost of…
A: Production function q=KαL1-α ............ (1) wage rate = w and rent on capital =r
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: Answer to the question is as follows:
Q: Rick's ski board factory has the Total Cost function: TC(Q)=0.02Q³ +300Q +200 where Q is the number…
A: The total cost function is the sum of the variable and the fixed cost. The variable cost is the cost…
Q: (а) Show the conditions for a Cobb-Douglas production function under (i) increasing returns to scale…
A: The study of production is completely different according to the time frame which is very important…
Q: Ball Bearings, Inc., faces costs of production as follows:…
A: Cost of production refers to the overall cost incurred by a company to manufacture a given amount of…
Q: However, Kenji's decision regarding how many workers to use can vary from week to week because his…
A: Total fixed costs are the total obligations of the firm per time period for all fixed inputs. Total…
Q: explain why spacex has the characteristics of a monoply structur
A: The markets are the place where the economic transactions between the buyers, and sellers takes…
Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…
A: The difference between implicit and explicit cost is important to understand the difference between…
Q: Galaxy, a multinational corporation, has two plants, one in the United States and the other in…
A: Challenges of MNC(multinational companies) The MNC or international business operate in different…
Q: What are the advantages of internal economies of scale ? Explain shortly.
A: Internal economies of scale mean the company improves output when the average cost of the product…
Q: A firm with positive fixed costs encounters CRS and then DRS as it expands production. Show the…
A: Constant return to scale where MP is a horizontal line and In Diminishing returns to scale MP is…
Q: The profit maximizing stage of produstion: a Begins when Average Physical Product is equal to…
A: Profit is generally maximized in the second stage of production. In stage one, Marginal product is…
Q: “Short-Run Production Theory is the mirror opposite of Short-Run Cost Theory,” Is this statement…
A: Answer -
Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…
A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…
Q: 9. For which of the following production functions could the long-run expansion path be vertical,…
A: The expansion path of the firm is that the locus of cost-minimizing mixtures of inputs at numerous…
Q: a) Find the short-run TC, TVC, and TFC curves for this production process. Sketch them on a single…
A: Q = f(K, L) = 3KL When K = 4, Q = 12L L = Q/12 TC = wL + rK = 24 x (Q/12) + (2 x 4) TC = 2Q + 8 TVC…
Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…
A: All the costs that are linked or incurred to the business activities of a company and are easily…
Q: Consider a firm with marginal costs of MC=70+2Q. The firm is considering investing in research and…
A: Marginal costs of production are changes in the total costs of production due to the production or…
Q: Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business…
A: Explicit cost: It is the actual monetary expenditure required to run a business. Implicit cost: It…
Q: A firm has a Cobb-Douglas production function, q = 2L^0.5K^0.5 . If it faces prices of w = 20 and r…
A: q=2L0.5×K0.5q=2L0.5×(100)0.5q=2L0.5×10q=20L0.5L=q202L=q2400
Q: mple of economic profit( explicit, implicit costs)
A: The cost which is identifiable and clear in monetary terms is an explicit cost while the cost of…
Q: Distinguish between short-run and long-run production decisions and illustrate their impact on costs…
A: Average cost is total cost divided by total production while marginal cost is the change in total…
Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…
A: Average cost is the per unit cost of production
Q: The additional cost of producing one more unit of output is calicu
A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.
Q: (Alternative Measures of Profit) Calculate the accounting profit or loss as well as the economic…
A: Accounting profit is simply calculated by subtracting the explicit costs from the total revenues of…
Q: The cost formula for a company can be modeled by C=1092+40x+0.1x2C=1092+40x+0.1x2 where xx…
A: The break-even point of a firm is the production level where the total revenue generated from the…
Step by step
Solved in 4 steps
- The Life-Cycle/Permanent Income Model of Consumption makes a different prediction from the Keynesian Model, about how Consumption reacts to an increase in current income. Which of the following is the best description of the difference? O In the Keynesian Model, consumers will increasktheir spending by the mpc times the increase in income. In the Life-Cycle/Permanent Income Model, consumers will not increase their spending by much unless they believe that the increase in their income is permanent. O In the Life-Cycle/Permanent Income Model, consumers will increase their spending by the mpc times the increase in income. In the Keynesian Model, consumers will only increase their spending if they believe that the increase in their income is temporary. O In the Keynesian Model, consumers will increase their spending by the mpc times the increase in income. In the Life-Cycle/Permanent Income Model, consumers will only increase their spending if they believe that the increase in their income…Assume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.The following questions refer to this table: a.At each level of output, calculate saving. At each level of out-put, calculate unplanned investment (inventory change).What is likely to happen to aggregate output if the economyproduces at each of the levels indicated? What is the equilib-rium level of output?b.Over each range of income (2,000 to 2,500, 2,500 to 3,000, andso on), calculate the marginal propensity to consume. Calculatethe marginal propensity to save. What is the multiplier?c.By assuming there is no change in the level of the MPC andthe MPS and planned investment jumps by 200 and is sus-tained at that higher level, recompute the table. What is thenew equilibrium level of Y? Is this consistent with what youcompute using the multiplier?
- Assume in country Y, the average marginal propensity to save is 0.2. When the aggregateincome is zero, consumers spend 50 to consume. Derive the saving function and consumptionfunction for this country. What happens to consumption when the propensity to savedecreases to 0.1? Explain your answer and show this on the graph.| Assume in country Y, the average marginal propensity to save is 0.2. When the aggregate income is zero, consum- ers spend 50 to consume. Derive the saving function and consumption function for this country. What happens to consumption when the propensity to save decreases to 0.1? Explain your answer and show this on the graph.Assume in a simple economy that the level of saving is –500 whenaggregate output equals zero and that the marginal propensity tosave is 0.2. Derive the saving function and the consumption func-tion, and draw a graph showing these functions. At what level ofaggregate output does the consumption curve cross the 45° line?Explain your answer and show this on the graph.
- 30. Given this model, what would be the change in equilibrium level of income were G to increase to 250? 31. Given this model, what would be the new equi8librium level of income were Investment spending to decline by 50?The table below provides Income and consumption Data in billions of dollars. Answer question below based on it.Disposable Consumption SavingsIncome100 80 --------200 150 --------- Using information from question 21, calculate the marginal propensity to consume for the economy? a. 0.8 b. 0.2 c. 0.3 d. 0.7n an effort to make sales projections, M/s K, B and A, the three B-school executives of Vengaboys Inc., were discussing about the national income and its growth in Ibiza. K had estimated a linear consumption function for Ibiza to be C = 100 + 0.6 Y, and investment to be I = 100 per ear. In Ibiza, there was no income tax and government spending was minimal (assume 0). Ibiza was a closed economy, and hence no exports and imports. (i)K immediately knew what the investment Multiplier was. Can you find out? (ii)What is the level of income in Ibiza? (iii)K estimated that with Government spending 100 on a new road to be constructed, the income levels are sure to go up. K quickly calculated the change in income and the new income level to be:
- Which of the following would not increase consumption spending? O Decreased disposable income. Increased household wealth O A lower interest rate O Expectations of greater future income25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above O. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal Options are 3800,2800,1800,4800. Don't copy previous question becuase it is wrong?