A profit-maximizing firm will: O reduce employment if VMPL exceeds MCL. O expand employment if the VMPL exceeds MCL. reduce employment if VMP equals MCL. O expand employment if VMPL equals MCL
Q: Which is considered a factor of production? Multiple Choice O service knowledge bonds competition
A: Factors of production:- The factors of manufacturing refers to the materials that make up the…
Q: 11. Agreement and disagreement among economists Suppose that Rajiv, an economist from a university…
A: 1) The disagreement between these economists is most likely due to Solution: Difference in values…
Q: Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in…
A: Between 5th and high school its 7 years Amount saved = 500Php twice a month Interest rate (i) =…
Q: How is regionalism different and yet a part of globalization?
A: Globalization,makes you aware of your surroundings. When you open your eyes, you notice that public…
Q: escribe the term macro economic
A: The answer is given below
Q: Which of the following would lead to an increase (rightward shift) in the demand for money? an…
A: The answer is -decrease in the interest rate.
Q: When money serves as a unit of account, this means that money acts as... Select the correct answer…
A: Money is a form of asset that individuals in an economy use to buy goods and services.Money acts as…
Q: Suppose the Fed decided to purchase $100 billion worth of government securities in the open market.…
A: Government securities worth= $100 billion
Q: 15. Consider a single competitive firm that starts off with zero capital in time 1. It's trying to…
A: * SOLUTION :- (10) Given that ,
Q: Efficiency means Multiple Choice O O о the amount of output you generate given the amount of input.…
A: When all items and techniques of production in an economy are dispersed or assigned to their most…
Q: Which of the following Exchange Rate Regime allows for government intervention in the market for…
A: In flexible exchange rate, the price of the currency is determined by the forces of demand and…
Q: The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs…
A: iven information First cost=$119000 Annual revenue=$33100 Salvage value=$31600 CCA rate=30% Tax…
Q: 4. Measuring Risk: Suppose you have a risk free asset with return ry = 5%. Additionally, t whole…
A:
Q: Using an AD/AS diagram, demonstrate what happens when foreigners buy more American goods?
A: AD-AS model is used to determine equilibrium real GDP and price level in the economy.
Q: Sherry has a goal of retiring with $371,060 by making weekly deposits into an investment account…
A: Given future value = $371,060 annual interest rate = 1.6% Weekly interest rate for weekly deposits =…
Q: 2. A water resources project has benefits that equal $40,000 at the end of the first year and…
A: Given Benefit at the end of the first year A1 = 40,000 and benefit increases on a uniform gradient…
Q: Government survey-takers noted the following prices each year for the listed items. Items 2016…
A: a) Calculate the percentage in PPI from the base year 2016…
Q: 1. George maximizes expected utility and he has a von-Neumann-Morgenstern utility function u (c) =…
A: Utility = c1/2 Initial Wealth = $1000 success rate = 9% If successful then payoff = $100,000 Payoff…
Q: Question 31 A decrease in tax rates will increase the money multiplier. decrease the spending…
A: Tax multiplier Refers to the ratio of change in Real GDP with respect to change in taxes.
Q: If inflation is less than expected, who benefits? Please include one or more examples in your…
A: Inflation is defined as an increase in the overall price of goods and services in a given economy.…
Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: Circular flow of income shows flow of goods and services and products between households and firms.
Q: If potential output $5,000 and current output is $4,500 then which statement would be true? The…
A: There are two kind of gaps in the economy: 1. Inflationary gap 2. Recessionary gap
Q: 4. Given a firm's total cost at different quantities of output, Output Level 0 1 2 3 4 5 6 7 Total…
A: ATC = TC/Q AVC = TVC/Q
Q: 9. Marginal revenue equals marginal cost in perfect competition when... a) A firm is in equilibrium…
A: There are large number of buyers and sellers in the perfectly competitive market. Firms are only…
Q: Suppose that all investors have the disposition effect. A new stock has just been issued at a price…
A: Given, Stock issued at a price of $50 A year later the stock will be take over price will be : $60…
Q: xplanation it correctly Q)The effect of foreign purchases: A. shifts the aggregate demand curve to…
A: Aggregate demand = consumption + Investment + Govt spending + Net exports(Export - imports) When…
Q: Morty is looking into buying an apartment. He checked out a few places recently, and it looks like…
A: At the marketplace, an individual haveto make purchase or sale decision based on various economic…
Q: Adam Smith believed that since businesspeople are motivated to improve their own prosperity, their…
A: Adam Smith believed in broader perspective of the society. He said that economies produce and…
Q: Next, consider a case that the integrated firm produce the product and sell directly to consumers.…
A: Introduction Here we have a case of integrated market where firm produces the product and sell…
Q: In a given community, the unemployment rate is 4% and their working-age population is 930,000. Labor…
A: Here we calculate the unemployment rate in February assuming everything was constant as December…
Q: Suppose demand for masks is Q-21-P. The supply of masks is Qs =2P Set QpQs and use algebra to find…
A: the equilibrium is at Qd=Qs 21-P=2P 3P=21 P=7 Q=2*7=14
Q: David consumes two things: gasoline (q₁) and bread (92). David's utility function is U(91, 92)=3091₁…
A: A consumer will maximise the utility at a point where marginal rate of substitution is equal to the…
Q: on what course action to take if the information is meant to help them decide on some food stipend…
A: *Answer:
Q: Both the federal government and individual colleges typically use needs analysis, which considers…
A: According to the question, Line A refer to the total adjusted gross income reported on a tax return…
Q: The method of measuring economic development developed by the UNDP is known as: O a. Gross Domestic…
A: UNDP measures the economic development by publishing a report on Human Development Report. This…
Q: your) 8 300 175 100 What graph would represent the total fixed cost curve? (A) C B B Figure J (2) O…
A: Total cost is a sum of fixed cost and variable cost.
Q: nterpret and explain, diagram of effect of airline regulation by the civil aeronautic board indicate…
A: Civil aviation, which has been heavily regulated by European governments, is one of the industries…
Q: What is the nominal gdp and the value added of service sector?
A: Gross Domestic Product (GDP) is defined as the value of all final goods and services that are…
Q: Suppose a firm's production function is given by Q = 10L0.2 K (1-0.2) Wage rate is $10 and rental…
A:
Q: Explain the concept of excess demand in macroeconomics. Also, explain the role of open market…
A: Excess demand is defined as when aggregate demand exceeds aggregate supply at full employment.
Q: 3. Assume that a firm which produces an output according to the following function is attempting to…
A: Given production function q=f(K,L)=(0.5K12+0.5L12)12 Price of labor=WPrice of capital=r
Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…
A: Given, Superconductors play a vital role in the manufacturing of machines. They are found in each…
Q: 30 23 20 15 220 12 Price MC 15 ATC D 0 9 12 Quantity \MR Refer to Figure above. A profit-maximizing…
A: In a monopoly, marginal revenue lies below the demand curve because the seller has to decrease the…
Q: Suppose real GDP is growing at a rate of 3%, and money supply is growing at 6%. What is the…
A: Answer; Answer = 3percentage
Q: In the market for reserves, if the Federal Reserve Bank increases the required reserve ratio, this…
A: Required reserve ratio:- A required reserve ratio can be explained as the percentage of assets which…
Q: How does the rate of population growth influence the level of GDP per person?
A: (Q) How does the rate of population growth influence the level of GDP per person?
Q: QUESTION 6 Commercial banks purchase gov't debt, which counts as assets of commercial banks.…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Josh is playing blackjack for real money. He has reference-dependent preferences over money: if his…
A: Given value function V(X)=ln(X+1)---X>=0 V(X)=-2ln(-X+1)--- X=<0
Q: SMARTPHONES (Millions) PPF 60 40 20 0 0 40 60 CORN (Millions of bushels) Which of the following is…
A: The production possibility frontier (PPF) is a business analysis curve that represents the various…
Q: Discuss the sources and approaches used by McDonald’s in order to stay abreast of the environmental…
A: McDonald's takes a variety of steps to ensure that it is up to date on environmental issues. Global…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Jeremy worked at a bank with a monthly salary of $1,500. He decided to quit his job and open a bookstore inhis neighborhood. He now pays $500 in rent, $80 in utilities and $120 in wages every month. He also paysthe publisher $5 per book sold. This month Jeremy sold 100 books at the price of $30 per book.a. What was the total revenue this month? Calculate this month’s explicit fixed cost, the variable costand the total cost.b. How much accounting profit did Jeremy make?c. How much economic profit did Jeremy make?d. If Jeremy had not quit his job at the bank, he could have been promoted and got a pay raise of 30percent. How would this affect his accounting profit and his economic profit?Amy wants to open a coffee shop and has already rented a coffee retail space on Bloor Street, signing a lease for three months, which includes her expresso-making equipment. The rent is $900 per week and the wage for barristas is $16 per hour. Amy can legally keep her shop open up to 100 hours a week. The number of expresso drinks q Amy’s barristas can make in an hour given the capital on hand, and assuming she doesn’t run out of beans or cups, is given by q = 15L.5 where L is the number of barristas currently working. Amy can provide 50 hours of barrista labor herself instead of hiring a worker if she wants to reduce labor costs, and she could also work 50 hours a week running the coffee shop across the street for $25 an hour. The typical price of an expresso drink is $7, which Amy takes as given since there are many other coffee shops in the neighborhood. The cost of the materials M (cups, beans, and milk) that go into each drink sold is $2.50, and Amy’s coffee bean and cups…Suppose a firm is maximizing profits in the short run with variable factor x1 and fixed factor x2. If the price of x2 goes down, what happens to the f irm’s use of x1? What happens to the firm’s level of profits?
- In 2018, General Motors (GM) announced that it would reduce employment by 14,000 workers. a. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? O The MRC of those 14,000 workers was negative. O The MRC of those 14,000 workers was less than the MRP. O The MRP of those 14,000 workers was negative. O The MRC of those 14,000 workers was greater than the MRP. b. Why didn't GM reduce employment by more than 14,000 workers or by fewer than 14,000 workers? O The company wanted to set the labor level where MRC equaled MRP to maximize profits. The company wanted to set the labor level where MRC equaled MRP to maximize revenue. O This was what the board of directors voted to do. O It lowered GM's cost enough to make some profit.Using your knowledge of marginal revenue product, explain the following: A famous tennis star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500. Compared to the stock actor, the famous tennis star has O A. a higher marginal revenue product because the average cost of the ad with the tennis star is higher. O B. a higher marginal revenue product because revenue increases by more from having the tennis star appear in the ad. O C. a higher marginal revenue product because the ad with the tennis star generates more profit. O D. a higher marginal revenue product because the tennis star can produce more ads. O E. a higher marginal revenue product because the cost of the ad with the tennis star is higher.Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $54,000 to $72,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/P)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP /P d?
- Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $52,000 to $70,000. If he adds one more tractor, monthly revenue will increase from $52,000 to $64,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP /PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP OPd? %24Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $68,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP ✓ ÷ PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP C÷ PC)? c. Is the firm using the least-costly combination of inputs? (Click to select) = d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent? (Click to select)Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? $ The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? : What is the ratio of the marginal revenue product of capital to the price of capital (MRPC/PC)? :
- Give typing answer with explanation and conclusion Indy runs a small pet shop. He pays one employee $42,000 per year and spends $60,000 on pets and supplies to sell. He has his own funds tied up in running the company; those funds could earn him $6,000 per year if invested elsewhere. He pays rent of $24,000 per year for his shop space. Indy has been offered a job at a competing pet store for a wage of $44,000 per year. He values his forgone?Plz give answer ASAP. A price taking firm has the production function, q = f(l) = √ l where q is the output and l is the labor input. The price of labor input or wage is equal to $ 5, the output price is given by p, and the fixed cost is $80. a. Find the prices at which the firm makes a positive profit, and graph the prices along the curve, Hint find the profit function (SOLVE) b. Find the firm’s supply curve. (chek if correct) Q^2 = L TC or C(q) = wl = wq^2 The level of output wich firm maximizes profit is firms supply function We know profit function = pq – wq^2 dπ/dq = p – 2wq =0 p=2wq q(p,w) = p/2w thus supply function q=p/2w c. When p=10, since the firm makes a negative profit, it is better not to produce. True or False? Explain Hint part (a) we found positive values use (a) to demonstrate (SOLVE)In the theory of the firm, profit is maximized at a rate of production at which O Economic profit is zero O Price is highest O Marginal revenue equals marginal cost O Marginal cost is at its lowest point