Q: 7 A local tavern in a perfectly competitive market was in a long-run equilibrium. Then, a scientific...
A: Answer -
Q: When the consumer has limited buying options from a company, the company utilizes which of Porter's ...
A: Porter's Five Competitive Forces Porter's Five Forces basically refers to a model that identifies an...
Q: Suppose real GDP is constant. If the government's fiscal policy objective is to keep the size of the...
A: Here, it is given that the economy has constant real GDP and government wants to maintain the size o...
Q: 7.2 (LG 7.2) Maryhill Mines has a pelletizer that it is considering for replacement. Every three yea...
A: Introduction:- The pelletizer gadget, which changes over the item into pellets of different shapes a...
Q: Northern Bank: Balance Sheet Assets Liabilities $420 $7,580 $8.000 Deposits Capital $7,000 $1,000 Re...
A: The given table shows the balance sheet of the Northern Bank and banks decides to maintain the reser...
Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is ...
A: Quantity of Labor (L) Quantity of Output Wage Rate (WR) Total Cost (L*WR) Marginal Cost (TCn -TCn-1)...
Q: Suppose the budget line on the graph is for an income of $500, the Pa=$5 and Pp=$2. Good A B Good B
A: The equation which shows the budget line is PA*A + PB*B = M where, PA and PB are the price of good A...
Q: Is America a meritocracy?
A: The term Meritocracy refers to such kind of government which is ruled people from the educated class...
Q: 4. In one way our money loose it's function is when the appearance becomes gray yet some features ar...
A: A currency is money, in the form of paper or coins, usually issued by a government and generally acc...
Q: Round your answers to two digits after the decimal(the nearest 1/100th). The following question cons...
A: Firm is operating under a perfectly competitive market therefore , P = MC & P = 35 (Given ...
Q: If a company is running short of funds and they want to increase revenue. Should you increase or dec...
A: When the firm runs short of funds then increasing revenue is the best way to fulfill fund requiremen...
Q: Refer to the information provided in Figure below to answer the question that follow. AS 110 AD 600 ...
A: Oil embargo depicts a situation where oil supply is decreasing. In economy most of the production is...
Q: How does your trade area compare to the Toronto average for those with a post secondary education le...
A: In the ranking variable in Canada it is the trading area that has grown in the demand of the adults...
Q: On a (0,1) linear segment, two firms A and B selling the same good are located symmetrically at loca...
A: Consumer Utility = 10 - 4d - p Firm A is (L) = 0.2 (Given ) Firm B is at (1-L) = 0.8 Let us ...
Q: Assume that the initial equilibrium in a labor allocation diagram is given as it is shown in the fig...
A: Given, Marginal product of Labour in the Y-industry is assumed to drop to zero at a certainindustry ...
Q: A movie monopolist sells to college students and other adults. The demand function for students is Q...
A: Without price discrimination Q= QdA+QdS 1,600 – 25P+1,000 – 25P 2600-50P P=2600-Q/50 TR=PQ=1/50(1600...
Q: long-run equilibrium by shifting the appropriate curve or curves and/or placing the point for long-r...
A: In macroeconomics, the money supply alludes to the complete volume of cash held by the general popul...
Q: Derive the Hicksian demand and the expenditure function for u (x, y) = (0.3/7 + 0.7/9)*.
A:
Q: Consider a production firm whose production function has the isoquant shown in the following graph. ...
A: Given is the graph of the production firm's isoquant. The isoquant is a downward sloping curve in th...
Q: n the economy of Robberia, the monetary base is $3500. People hold 40% of their money in the form of...
A: Given Monetary Base MB=$3500 Currency C=40% of the money Deposits D =60% of the money Reserve =20% o...
Q: 11.)Which of the following demand curves DOES NOT satisfy the law of demand? а.) PD 3D 16 + Qр b.) P...
A: Since you have asked a multiple question, we will solve first question for you. In case you want any...
Q: This person earns $1000 of income today and $2000 income next year. Point C represents his consumpti...
A: The budget line/constraints for a two-period consumption is given by [Ct+Ct+1/rt+1]=[Yt+Yt+1/rt+1] W...
Q: 7.) Who discovered the law of comparative advantage? a.) David Ricardo b.) Robert Torrents c.) David...
A: The law of comparative advantage says that a country has a comparative advantage in producing goods ...
Q: The Phillips curve in Lowland takes the form of π = 0.04 − 0.6(u − 0.05), where π is the actual infl...
A: Answer -
Q: Which of the following will affect our debt-to-GDP ratio? O a. Government expenditures O b. GDP grow...
A: Debt to GDP ratio is the ratio between the total debt of a country and its GDP. The lesser the ratio...
Q: The table shows the quantities of the goods Suzie bought and the prices she paid during two consecut...
A: Given: Goods: coffee, books, gasoline, concert Note: Due to multiple subparts being posted, the firs...
Q: Refer to the information provided in Table Table Aggregate Output Aggregate Consumption Planned Inve...
A: The portion of each of the additional extra income of a household that is being spent or consumed is...
Q: 3. Derive tne equations of IS curve, LM Curve, and find equilibrium income and int Trom this IS-LM m...
A: Y=C+I+G C=c0+c1(Y-T) -c2r I=Io+a0Y -ar T=t0+t1Y G=G0 MQ=mY+m0-hr MQ=Mr=M
Q: The PH debt as of today amounts 12 trillions. This balloons with an interest rate of 0.16% yearly. S...
A: Let us firstly calculate debt on every working individual . 12 trillion = 12 million millions ( 1 ...
Q: 10. Unemployment benefits usually last for 26 weeks; however, the federal government can vote to ext...
A: The economics as a study is based upon the basic idea of scarcity, and the resources which are prese...
Q: Figure: Market for Tea in Northlandia Price of tea Domestie upply Pw P Domestic demand Or Quantity o...
A: In the given graph, it is given that the autarky price is P1 and world price is PW.
Q: why do technological improvements only increase population and not the long-run standard of living?
A: In an economy, technological improvement refers to the situation when their is an enhancement in the...
Q: Consider the following open economy SI model set up Y = 18000 C = 300 + 0.8(Y − 2500) I = 3500 − 400...
A: We have given Y= 18000 C=300+0.8(Y-2500) .... (1) I=3500-400r ....
Q: substitution effect: Suppose the price of sausage doubles, the substitution effect will lead her to ...
A: Consumers choose the goods according to the price and their budget constraint, if the price of goods...
Q: b. Shift the appropriate curve or curves to show the initial short-run adjustment. Then shift the ap...
A: Answer -
Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new ...
A: According to the economist investment is such a concept which focuses on the goods production in ord...
Q: At point C, how many units of Good X are bought? Good X 8 (?X, ?Y) C(?X, ?Y A (55X, ?Y) udet inemess...
A: A budget line is the graphical representation of different combinations of two goods that can be pur...
Q: a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the po...
A: IS curve can be shifted either towards the right or to the left when there are fiscal policies taken...
Q: 6. We have the production function, Q= f( K,L). Factor prices are r and w respectively and the produ...
A: Here, we have Production function, Q=f(K,L) Rental rate of a unit of capital is given by r which is ...
Q: Educational equality exists when schooling produces the same __________ for lower-class children and...
A: Education equality refers to the similar level of opportunities and knowledge for all the people irr...
Q: Given that fixed cost =230 and variable cost=D12Q ; the total cost of producing 30 units of output i...
A: Let's First understand what is total cost. Total cost is the sum of fixed cost and variable cost inc...
Q: Suppose that Ellot has the following utility function: U(x,x)-V+0.5x, Suppose that the price of good...
A:
Q: Explain why a city that has a low price elasticity of supply in the housing market, like Detroit, mi...
A: Supply refers to the amount of a particular product or service that suppliers are willing to offer t...
Q: How is education level impact the lives of consumers?
A: Consumers are the people who make purchases. For a business organization, it is very important to un...
Q: 4
A: Market in deflation or recession The contradictory phase in economy a situation happens when there i...
Q: Consider an income guarantee program with an income guarantee of $3,000 and a benefit reduction rate...
A: Budget constraint show all combination of goods and services which may be brought by a consumer give...
Q: 16.) Suppose that a demand curve passes through the points (4,$4.00) and (8,$2.00). What is the pric...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Qd=1500-4P ; Qs= 100+3P A. Solve for the equilibrium price and quantity B. Solve for the price level...
A: Surplus and shortage are conditions which pccur in market when there is disturbances in equilibrium ...
Q: Using a standard normal distribution (mean=0, sd=1), calculate the following. (Answers in percentage...
A: A normal distribution with mean =0, and standard deviation =1 is called a standard normal distributi...
Q: Suppose a price taking firm has a cost function C = 7+1.5q*+3q, and takes price of p = 30. What is t...
A: perfect competition firm also known as the price-taking firms.
Step by step
Solved in 2 steps with 2 images
- Number of Sodas per day Total Utility Marginal Utilit 1 20 35 3 47 12 4 10 Refer to the table, The marginal utility of the second soda per day is L. (Answer should be in the form of numerical characters, e.g. 20) Enter your answer hereEren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).
- Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate the change in consumer surplus from consuming the expensivemeals considering the price change (Hint: you need to compare his optimalconsumption bundle before and after the price change to get the change in CS).Exercise Suppose the utility function of a person consuming two commodities X and Ywith income Birr 600 is given by U = 2 X 06Y 04 If the per unit price of X is Birr 20 and per unit price of Y is Birr 40 a) What is the utility maximizing level of consumption of X & Y ? b) Find the MRSyy at the optimum ?Q- Marginal utility can never be negative. True/False
- how do you find the marginal utilities of the goods with the information provided?Quantity X TUx MUX MUX/Px Quantity Y TUy MUY MUy/Py 1 75 1 96 135 60 B 72 185 50 3 234 66 4 230 45 A 4 294 60 270 5 348 54 2.EXERCISE 7 Aisha is considering how to allocate the next 6 hours of her free time. She could choose between leisure (L) and helping her neighbour with the house chores. If she decides to help her neighbour, she is going to get paid at £25 per hour, which she can then spend on her favourite pizza (P). Suppose the price of pizza is £12.50. Aisha's preferences for leisure and pizza are given by the following utility function: U(L, P) = 3L + P. (MU₁ = 3, MUp = 1). a) Write down Aisha's budget equation and draw the corresponding budget line. Clearly label the axes and calculate the coordinates of the points of intersection of the budget line with each axis. b) Calculate Aisha's marginal rate of substitution between leisure and pizza. Explain the concept of MRS and interpret the figure obtained. c) Find Aisha's optimal consumption bundle, both algebraically and graphically. Explain your reasoning. d) Would Aisha's optimal choice change if she could get a discount on her pizza purchases so…
- Please no written by hand and no emage Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils.a) Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b) Calculate the optimal weekly consumption bundle for this consumer.c) Does the consumer view C and S as complements or substitutes?Hello, I need some help with the attached question, parts b) and c). The topic is on constrained consumer optimisation.U(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is the price of good x, py is the price of good y and M is the budget available. a. Derive an expression for the marginal utility of x. Under what condition is the marginal utility diminishing. b. Derive an expression for the marginal utility of y. Under what condition is the marginal utility diminishing.