Show how quantity regulations can be used to counteract an externality, anddiscuss the pros and cons of such a solution.

Q: Assume that Malaysia is currently operating at natural level of output. However, due to the Covid-19...

A: Due to the Covid-19 pandemic, the consumption and total investment has decreased. This would leads t...

Q: Economics Question

A:

Q: 1. Hours of Labor Required to produce Cheese and Wine USA FRANCE Cheese 20 30 Wine 8 20 b. If the US...

A: The Production Possibility Frontier can be used to determine the output capacity of the economy. It ...

Q: Your brother is considering two cell phone providers i.e. UFONE and MOBILINK. Q2. UFONE charges Rs.5...

A: The law of demand states that – when other factors remain constant (cetris peribus), price(P) and qu...

Q: Suppose that the production function of the firm is:Q = 100L1/2 . K1/2K= 100, P = $1, w = $30 and r ...

A: The production function is given by : Q = 100L1/2 . K1/2 The cost function of a firm is given by : C...

Q: Find the point of demand elasticity when: a. P= 105, with demand function is P = 7+ 2Q2 b. Q= 8, wit...

A: 7 + 2Q2 = P 2Q2 = P - 7 Q2 = 0.5P - 3.5 Q = (0.5P - 3.5)0.5 When P = 105: 105 = 7 + 2Q2 2Q2 = 98 Q2 ...

Q: 47. It might take a while before the effects of changes in monetary policy are realized in the econo...

A: It might take a while before the effects of changes in monetary policy are realized in the economy b...

Q: 27. The statement that "if an import tariff raises the relative price of the imported good, the pric...

A: Given statement describes the relationship between relative prices of output and relative factor rew...

Q: Remember, quantities need not be integers. A monopolist faces market demand MWTP(Q) = 56 - Q. The ma...

A: Producer surplus is the difference between price that is producers willingness to accept and equilib...

Q: Economics Question

A: In first Paragraph   1.) Recession is coming when two consecutive quarters of decline in GDP.     “T...

Q: 2. Consider the country ABC. The demand function for product A is Q=500-4P, the supply function Q=10...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: Explain how an increase in your nominal income and a decrease in your real income might occur simult...

A: When there is a simultaneously increase in price and nominal income, and the increase in prices is m...

Q: Question No. 1 The demand and supply schedules for gum are in the table. Quantity demanded (millions...

A: Equilibrium is achieved at the output level where quantity demanded equals quantity supplied. 

Q: Thanks!

A: Absolute advantage and comparative advantage are two concepts in economics and international trade t...

Q: If a firm sells its output on a market characterized by a single seller and many buyers of a homogen...

A: Market structure: It is the division of the market depending on the competition, demand, and supply ...

Q: Revenue at a major smartphone manufacturer was $2.3 billion for the nine months endingMarch 2, up 85...

A: Given information: The revenue from the smartphone = $2.3 billion Percentage increase in revenue fro...

Q: 29. Consider a perfectly competitive industry in which each firm has the total cost function tc = q ...

A: In a perfectly competitive market there are large number of firms producing identical products thus ...

Q: Assume Company X deposits $100,000 in cash in commercial Bank A. If no excess reserves exist at the ...

A: Reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rather ...

Q: The demand function equation faced by PTCL for its computers is given by:P = 50,000 – 4Qi. Write the...

A: Given : P = 50,000 – 4Q Total revenue = PQ = 50000Q - 4Q2

Q: Describe the strategic production decisionof firms in an oligopoly.

A: Oligopoly is a market with limited competition and is shared by only a few sellers or producers. Oli...

Q: 46. Suppose a financial analyst suggests that investors should now  hold cash instead of stocks or b...

A: Precautionary demand: It is for highly liquid financial assets. 

Q: 36. Over the centuries several eminent thinkers have offered insights into the prob- lems of decisio...

A: The correct chronological order of eminent thinkers can be written as follows :

Q: Question No. 3 The table below contains information about the total utility Jerry gains from coffee ...

A: Below is the given table:

Q: 10. Karl's utility function is U(w) where w is wealth. His initial wealth %3D w+200 300. He consider...

A: If Karl gambles and wins, he gets 200 and if he gambles and lost, he loses 200. So The total wealth ...

Q: 41. Because of the volatility of food and energy prices, the Bank of Canada pays more attention in t...

A: Inflation: It is a decrease in the power of purchase of a given currency over time.

Q: First state if true or false then always explain your answer please.     a) A curved PPF is the res...

A: a.Answer is true. There are different factor endowments involved for countries.some countries have c...

Q: Explain about Economics fluctuations (You may use defintions, descriptions, Graphs, Charts, ..)

A: Answer: Definition of economic fluctuations: economic fluctuations refers to the sharp contraction o...

Q: QUESTION 15 Unions contribute to cyclical unemployment. frictional unemployment. seasonal unemployme...

A: Unemployment rate would increase due to the following reason. 

Q: Statutory Minimum Wage (SMW) has come into force since 1 May 2011 in Hong Kong. The current SMW rate...

A: Minimum wage refers to a price floor in the labor market that establishes the lowest remuneration em...

Q: Suppose in a closed economy, an unexpected pandemic discourages household consumption.i. Use the IS-...

A: When an unexpected pandemic discourages the household consumption, people will demand less goods and...

Q: 3. Rules versus discretion This question addresses the issue of whether monetary policy should be ma...

A: We are going to discuss the highlights of Rule based policy and Discretion based policy to answer th...

Q: What do economists mean when they say that “price floors and ceilings stiflfle the rationing functio...

A: When not controlled, price fall and rises in order to correct imbalances between the quantity demand...

Q: Which of the following is an example of tacit collusion?   a.  Price leadership   ...

A: Tacit collision can be seen more in oligopolistic market condition.

Q: A monopolist produces 14,000 units of output and charges $14 per unit. Its MR is $10, its MC is $10,...

A: Given: A monopolist produces 14,000 units Price = $14 MR = $10 MC = $10 ATC = $12 AVC = $9    

Q: Given the following information, S = -200 + 3Y                                                     ...

A: S=-200+3Y I=100  Find: a) National Income equilibrium by using the Leakage-Injection b) The value of...

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.