2. Suppose a production function is q = K1/21/3 and in the short run capital (K) is fixed at 100. If the wage is $10 an rental rate on capital is $20, the short run production function is a. q = 10L 1/3 1/3 b. q = 100L C. 1 9 = 11/3 d. q 10 = 100
Q: What is inflation? A) A decrease in the general price level B) An increase in the general price…
A: Inflation is a term used in economics to describe a situation where the average price of goods and…
Q: Consider the figure. At the price of $8, the firm's short-run decision should be to A. stop…
A: Individual firms in a perfectly competitive(PC) market accept the prevailing market price(P) as…
Q: expected value
A: The Expected Value in this context represents the average final results that a decision-maker can…
Q: Money Market Mutual Fund Balances Held by Businesses Money Market Mutual Fund Balances Held by…
A: Money supply refers to the total amount of money available in an economy at a specific point in…
Q: (a) Derive the first-order conditions and show the solution is a c(w, T), n(w, T). pair of functions
A: The link between tax rates and government revenue is depicted in economics by the Laffer Curve. At…
Q: 36 33 30 27 24 22963 21 18 15 12 00 D 6 12 18 24 30 36 42 48 54 60 66 72 Q
A: . marketplace location is where the consumers and sellers meet each other to trade goods and…
Q: Note: Answer with 100% accuracy. And explain also. Please tell me why the option is wrong.
A: Inflation is a term used in economics to describe a situation where the average price of goods and…
Q: Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8…
A: Income elasticity of demand is a measure that indicates how sensitive the quantity demanded of a…
Q: onsider the extensive form game shown here. The top payoff at a terminal node is for player 1. Find…
A: In an extensive form game, a subgame is a part of the game that has a distinct starting point at a…
Q: Which of the following is(are) good example(s) for explaining the economic concept of scarcity? (We…
A: The concept of scarcity serves as a foundational principle shaping decision-making processes and…
Q: The following table lists the production possibilities in a single day for a donut shop. A B C D E…
A: Production possibility frontier (PPF) shows the combination of two goods that a firm or a country…
Q: Cost of the Meal the Meal Benefit to Making Benefit to eating the meal 50 100 20 80 175 30 150 200…
A: Game theory has numerous applications in modern socioeconomics, including pricing strategies,…
Q: The following information can be used to answer Questions #10-11. Assume that 2 individuals, College…
A: The problem at hand is a sequential game involving two players: a college student and a teacher. The…
Q: x Pace of Good X (d) C D S₁ Quantity of Good X D₂ D₁ In the diagram above, which of the following…
A: Market equilibrium is a state in economics where the supply of a good or service matches its demand,…
Q: Alter the interactive graph in order to witness how an upward shift of the MP curve affects the…
A: Monetary policy is the set of actions to control the nation's overall economic growth and money…
Q: 1. Determinants of the price elasticity of demand Consider the following list containing several…
A: The objective of the question is to understand the determinants of price elasticity of demand and…
Q: Solve for the short-run profit maximization problem for f(x1, x2) = 2x1 + x2 and f(x1, x2) =…
A: The objective of the question is to solve for the short-run profit maximization problem for the…
Q: Consider the following 3-players version of the war of attrition. All three players can stay and…
A: A non-symmetric Nash equilibrium occurs in game theory when different players employ unique…
Q: What is the profit maximizing combination of prices of vegetables sold double to $50? What is the…
A: Rate at which one factor of production is decreased in order to maintain the same level of output…
Q: Question: In economics, what does the term "inflation" refer to? A) A decrease in the overall level…
A: Deflation is the situation experienced by an economy in which the overall price level decreases.…
Q: The market for smart thermostats has grown increasingly competitive. Producers of smart thermostats…
A: As we know that in the long run equilibrium the form earns only zero profit That means normal profit…
Q: Given the production function y= f(x1,x2)=x11/3x21/3. The amount of x2 is equal to 216 in the short…
A: In economics, a production function is a means of examining the relationship between input and…
Q: Assume that the cost data in the following table are for a purely competitive producer: Average…
A: The short run is defined as the period in which at least one of the factors used is fixed and others…
Q: 1. If a consumer's net demands are (6, 1), what are her gross demands? (-4, 3) and her endowment is
A: The issue is to do with finding the gross demands of a consumer, based on her net wants and…
Q: Please answer in detail according to the picture. Find µ*. What is its interpretation? Find əc/əy…
A: Parameters:w (wage rate), r (rental rate of capital), y (desired output level).α and β are the…
Q: Suppose that a simple economy produces only four goods and services: cars, homes, cheeseburgers and…
A: Gross domestic product is the summation of a country's final goods and services. The increase in GDP…
Q: Consider a economy with three goods, a, b and c. The total supply consists 150a, 180b and 120c.…
A: In an Egalitarian Equivalent Allocation (EEA), all individuals enjoy the same level of satisfaction…
Q: Your professor has $20 to spend on Sour Patch Kids and Cherry Coke Zero, the two supplies most…
A: A budget constraint, in economics, refers to the limitation a consumer faces when trying to buy…
Q: 8. Ina sells her homegrown eggplant at a roadside stand. Assume that the industry is perfectly…
A: Perfect competition is a market where there are large number of firms and each firm is producing a…
Q: Consider the early 1970s when an oil price shock roiled the U.S. economy, including the labor…
A: Here we have to study about the Impact of oil shock on demand and supply of labor demand and supply.…
Q: Max 1,200x1 +600x2+1,650x4 s.t. 15,000x1 +20,000x2 + 25,000x3 + 30,000x470,000 x1+x21 x4x3 x1, x2,…
A: The capital budgeting problem is a mathematical model which will assess the available assets and the…
Q: Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate…
A: The objective of the question is to understand the impact of an increase in the money supply growth…
Q: With a comparative negligence rule (where responsibility for damages is split between the injurer…
A: False. The statement is incorrect since, under a comparative negligence rule, both the victim and…
Q: A pizza parlor owner uses a vending machine company to service his soft drinks.The owner of the…
A: Contracts for the exchange of goods, services, or money between two parties are legally binding…
Q: 1.Draw the extensive form representation of this game. 2. Find a subgame perfect equilibrium (SPE)…
A: Given,In the first stage,In the second stage,
Q: Q7. Answer the following questions. (Use suitable graphs to explain your answers) (i) For the…
A: Engel demand curve represents the quantity demanded for a good at different levels of income keeping…
Q: 3. Following table shows the willingness to pay of consumers to buy a pair of sport shoes and the…
A: Consumer surplus will be computed as a difference between consumer's willingness to pay for a…
Q: If the quantity of money grows at 10 percent a year, the velocity of circulation is constant, and…
A: The quantity theory of money is a study of the link between money, output, and pricing. It is…
Q: Complete the following table to show the effect of a new deposit on excess and required reserves…
A: An initial deposit made into the banking system increases the money supply. The total increase in…
Q: The below graph shows the domestic sugar market in Mexico (expressed in millions of tons). Based on…
A: The topic revolves on the concept of international commerce and how domestic supply, demand, and…
Q: c) Use indifference curves and the feasible set to show why, given the properties of the optimal…
A: Utility represents the satisfaction an individual derives from consuming goods and services. It's a…
Q: Consider the extensive form game portrayed below. The top number at a terminal node is player 1’s…
A: Subgame perfect nash equilibrium is a form of nash equilibrium used in dynamic games. It provides…
Q: plot. Assume that all of the plots are basically indistinguishable and that the minimum selling…
A: The maximum sum of money or other resources that a person is ready to trade in exchange for a…
Q: Discuss and carefully evaluate the health sector reform The Patient Protection and Affordable Care…
A: Social welfare means the overall state of knowledge or the level of contentment existing in the…
Q: do fast
A: The objective of the question is to calculate the marginal product of the 40th input item. In…
Q: The claim that increases in the growth rate of the money supply increase nominal interest rates but…
A: The objective of the question is to identify the economic theory that states that increases in the…
Q: 4. In an infinite period model, let y denote output and let ß = (1+r)¹. Let LATRI denote lifetime…
A: Given;To solve for LATRI such that it depends upon yt, r, and g.
Q: The following graph shows the average and marginal cost curves for Kandi Keynes, a perfectly…
A: Average total cost refers to the approximate total cost of production at different levels of…
Q: Consider an Edgeworth box economy in which the consumers have the Cobb- Douglas utility functions…
A: In Edgeworth box economy,
Q: 8. What is the primary purpose of financial regulation? a) Maximizing profits for financial…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- in an economy with production function Y = 1.5 × K^0.3L^0.7, K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________. A) 0.5; 0.8 B) 7; 8 C) 0.9; 1.35 D) 1.4; 0.4 E) 0.6; 0.9The production function is Cobb-Douglas: Y = AK^αL^1−α, where K = 1000, and L = 100. α=0,365 A=2,3 a) How much output does the economy produce?b) What is the real wage rate equal to in equilibrium? c) What is the real rental rate of capital equal to in equilibrium?Q 1. Given the following production function Where; Y is the total output of the economy K is the amount of land, and L is the labor force of the economy Assume A=1 and = 0.5 The initial values of K and L is 100 units. a. How much output does the economy produce? b. What are the wage and rental price of land? c. What share of output does land receive? d. If a flood damaged half of the land, what is the new level of output in the economy? e. What is the new level of wage and rent? f. What share of output does land receiving now? Q 2. Suppose in an economy, people hold currency worth of 10,000 Rs and 4000 Rs worth of demand deposits in the only bank. The reserve-deposit ratio is 20%. a. What is money supply, monetary base and money multiplier? b. Suppose the economy only bank is a simple bank. It takes deposits and make loans and has no capital. Show the balance sheet of the bank. c. The central bank wants to increase the money supply. Should it buy or sell the Govt bonds in the…
- Q 1. Given the following production function Y=AKα L 1-α Where; Y is the total output of the economy K is the amount of land, and L is the labor force of the economy Assume A=1 and = 0.5 The initial values of K and L is 100 units. a. How much output does the economy produce? b. What are the wage and rental price of land? c. What share of output does land receive?Consider a Cobb-Douglas production function, Y=zKα(Nd)1−α, with 0< α <1. (a) Show that this production function exhibits constant returns to scale. (That is, show that when K becomes xK and Nd becomes xNd, Y becomes xY for x > 0. (b) What is MPN? Is it increasing or decreasing in Nd?A production function has two inputs: domestic labor (Edom) and foreign labor (Efor.) The market is originally in equilibrium as shown below, and the production budget is fixed. Suppose a shock occurs that increases the marginal product of domestic labor. Assuming no changes in domestic or foreign wages, what will happen to the quantities of domestic and foreign labor employed? Initial long run equilibrium (prior to shock):
- Suppose that production function is Y=K1/3(AN)2/3 and competitive firms hire capital and labor to produce output. Let r be the return paid to capital and w be the real wage paid to labor. Which of the following is true? Group of answer choices A) a profit-maximizing firm hires capital and labor until average products equal factor prices B) labor income share is 1/3 C) real return to capital r grows at the rate of productivity growth D) real wages w grows at the rate of productivity growthA producer has the following technology.y= 6K^(1/2)L^(1/2) a) Prove formally that the production function exhibits constant returns to scale (use “λ” argument). b) Find analytically MPL and MPK. Is MPL increasing, decreasing, or constant inL? Is MPK increasing, decreasing, or constant in K? c) Short-run: Given stock of capital ̄K= 1 find labor demand (formula) of a competitive firm. Find equilibrium real wage rate if labor supply is given by Ls= 9 (one number). d) Assume again ̄K= 1 and that Ls= 9. The government adopts a real minimum wage of wmin/p=(3/2). Find labor demand (one number) and the unemployment rate (one number). Please depict the equilibrium on a graph with the real wage on the vertical axis and labor on the horizontal axis, indicating the equilibrium quantity of labor, wage, and unemployment, as well as the relevant curves. e) Find the cost function given prices of inputs wK= 4 and wL= 1 (formula). Plot the cost function on a graph, indicating the slope of the cost…please sir solve these 3 questions 33- If an increase in the price of one good leads to a fall in the quantity demanded of other than these goods are complementry good A- True B- False 34- the production function is a purely technical relationship between input and output A- True B- False 35- marginal proudact is defined as the change in TP resulting from the employment of an additional unit of a varibal factor: A- True B- False
- Suppose a firm is producing some output level q1 using a combination of capital and labor for which the RTS (MPL/MPK) at this input combination is 1. Suppose further that the wage rate is $20 and the rental rate on capital is $10. Which of the following statements is correct? A. The firm can reduce its costs of producing q1 by using more labor and less capital B. The firm can reduce its costs of producing q1 by using more capital and less labor C. The firm is currently minimizing the costs of producing q1 D. Whether or not the firm is minimizing the costs of producing q1 is indeterminate1) In an economy, the total output of all the firms is described by Y = 8 * K^0.25 * L^0.75. For it, The price level is P=20 and the cost of a unit of capital is R=6. There are L=10 workers in the economy. The payments for capital, or the capital bill, amount to RK=752 in the economy. Find the payments for wage, or wage bill, WL, in the economy. The answer is 2258, I need assistance with how to solve and get that answerProduction function for firm is Ys=ln(Ld)Utility function is U(Yd, Ld)= Ys+ln(1-Ls)1) Write down maximization problem of firm and find labor demand curve2) Write down maximization problem of household and find labor supply curve3) Write down market clearing conditions4) Calculate equilibrium employment and real wage5) If the price is equal to $2, what would be the nominal wage in equilibrium