Q: hich is not a valid argument favoring the use of output regulation over input regulation? a. Firms…
A: Any substance whose presence badly affects the environment is known as pollution. There are three…
Q: The figure to the right shows the market for product X. Suppose the government decides to impose a…
A: The price floor is the price set by the government which is the minimum price that should be charged…
Q: Why are the growth rates of M1 and M2 so different
A: Economists described money as anything that is generally accepted in payment for products or…
Q: Zambia like many countries in the sub-Saharan region have run substantial fiscal deficits over the…
A: Introduction The price level is determined by averaging the current prices for all the products…
Q: he Fed is fighting recession and it happens to overstimulate the economy. If the expected inflation…
A: The economy will be a recessionary gap when short-run aggregate supply and aggregate demand curves…
Q: An increase in aggregate demand will cause the unemployment rate to _______, the GDP growth rate to…
A: Aggregate demand refers to the total demand for goods and services in the economy by all the…
Q: The set of fiscal policies that would be most inflationary would be a(n) ___ Question 14 options:…
A: A fiscal policy is one in which the government use taxing, spending, and borrowing as instruments to…
Q: Explain, with the aid of a graph, the impact of lack of road maintenance on SA’s supply of road…
A: Roads are often called a lifeline of the economy. It connects the different parts of the countries.…
Q: Jenny's income is 232. Her utility function is given by U = x+8.2y. Assuming the price of good X is…
A: Jenny has utility function U=x+8.2y Income is 232 and prices are px=1 and py=2.7 to py'=17.3
Q: - A B C D G H Question 3: Profit Maximization for a Perfectly Competitive Firm (Parts a - g) 3 1 5 6…
A: 1. Total Revenue = Price * Quantity 2. Marginal Revenue is change in total revenue with change in…
Q: (3) Suppose the government decides to control the price of onion and set it at a price lower than…
A: 3) The government intervenes in the market to control the price, usually in form of a price ceiling…
Q: Jenny's income is 234. Her utility function is given by U = x+8.5y. Assuming the price of good X is…
A: Utility function shows the relationship between the utility and goods that are consumed. The given…
Q: Suppose there is a simple hypothetical economy in which the only industry is cloud computing. In the…
A: Human capital implies the skills, knowledge, health, etc people gain throughout their lives.…
Q: Machine Invention A machine is invented that makes jelly bean production more efficient. 5.…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping…
Q: (d) Find the optimal tax per ton that achieves the desired total reduction. How much less do firms…
A: When firms have to reduce pollution emissions, they bear a certain cost for that. This is because,…
Q: Blake decides to spend a spring day in the field planting wheat with some help from some workers he…
A: Economic profit is the difference between total revenue and tital of implicit and explicit cost.…
Q: The method of Lagrange was used correctly to find Jerry's optimal bundle. The price of good X is…
A: The utility maximisation point or the consumer equilibrium are other names for the optimal bundle.…
Q: Follow these steps: A. Identify if the problem is inflation or unemployment. If unemployment, state…
A: In economics, unemployment refers to the situation when some of the people, who are able and willing…
Q: Complete the following table by matching each of the scenarios to the concept of resale price…
A: Pricing Strategies The way with which a seller can gain maximum profits through his pricing…
Q: ow did the Fed's monetary policy change during the Great Recession? During the Great Recession,…
A: The nation's monetary policy will be conducted by Federal Reserve to promote maximum employment and…
Q: The free rider problem refers to people who a. will only consume a public good if it is free. b. for…
A: Free rider problem is regarded as an example of a market failure. In other words, it is an…
Q: Consider the country ABC that produces milk. The president of the ABC country allows free…
A: The usual buying and selling of goods and services between companies in several nations is referred…
Q: Suppose the interest rate falls and the level of planned investment falls. In the loanable funds…
A:
Q: Refer to Figure 11-7. If the economy is currently at point X, what does the Keynesian model predict…
A: The upward sloping blue line in the Keynesian cross diagram reflects the aggregate expenditure for…
Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…
Q: Suppose the government decides to control the price of gasoline and set it at a price lower than the…
A: The government intervenes in the market to control the price, usually in form of a price ceiling or…
Q: Problem1: Given the following information, you must complete the table: Total fixed cost is P220 per…
A: Variable cost = Number of inputs * Price of each variable inputTotal cost = Fixed cost + Variable…
Q: A firm uses labor (L) and capital (K) to produce output (q) according to the function: q= L ².K In…
A: Marginal product of labor is the increase in output produced by employing one more unit of labor. A…
Q: The figure above represents a firm in a perfectly competitive market. The firm will shut down if…
A: Perfect competition is a market arrangement in which there are many buyers and sellers. The products…
Q: 5. The first fundamental theorem of welfare economics states: a. Pareto improvements lead to…
A: The study of how the distribution of resources and products impacts societal wellbeing is known as…
Q: Which of the following are off-balance-sheet items of commercial bank? Futures. Deposits at the…
A: Off-balance sheet items are those transactions that are not included in the balance sheet.
Q: 3. Profit maximization using total cost and total revenue curves Suppose Amari operates a handicraft…
A: Total cost is the total cost of production, which includes both fixed and variable costs. The cost…
Q: 1. Suppose that an equation for infant mortality is described by the function: - VD (P)™. where i is…
A:
Q: Some companies increase their workers pay by giving raises, but others prefer to give one-time…
A: Payroll Cost: This is the expense caused by the firm to have employees services. Cash paid to…
Q: Refer to Figure 14-5. In which panel is the firm making a loss? panel (a) panel (b) panel (c) both…
A: Loss is when ATC is greater than Price And Profit is when ATC is less than Price that is when…
Q: Suppose that two firms with zero marginal costs are facing the inverse demand P=240-Q. Show that it…
A: An inverse demand function in economics is the opposite of a demand function. Price is seen as a…
Q: Question 1: An American family goes on vacation to see h to r beautiful city of Cambridge England.…
A: Exchange Rate is defined as the price of one country's currency in terms of another country's…
Q: suppose Boeing is the only firm that produces aeroplanes in the world. The marginal cost of…
A: Demand curve is the graphical representation of demand schedule. Demand schedule is the tabular…
Q: Suppose that the FOMC decides to lower its target for the federal funds rate. How can it use open…
A: Step 1 Open market operations are the selling and buying of bonds by the central bank. It was done…
Q: A commercial bank has actual reserves of $29,000 and checkable-deposit liabilities of $35,000, and…
A: The sums the bank actually has on hand at any particular time are known as actual reserves. This…
Q: Consider a two-player game in which the players take turns, with player 1 moving first. When it is a…
A: Nash equilibrium is an idea inside a game theory where the optimal outcome of a game is where there…
Q: where is question d
A: Subsidiary: As the marginal cost curve is the supply curve for the sellers which tells the minimum…
Q: Define a progressive income tax system. What will happen to the amount of taxes collected by the…
A: The government imposing compulsory levies on individuals or organizations is referred to as…
Q: 1. Define the Labor Participation Rate (LFP). Then, for each of the following explain what is likely…
A: Labor is a resource that is provided by workers, often in return for a salary that is paid by…
Q: Please select the economic term that is best described by each statement. People have limited…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose you are considering becoming a professional athlete. Whilst a pro athlete can expect to make…
A: As per Bartleby Guidelines, we have solved the first 3 sub-parts only. If you want us to solve the…
Q: When long-term interest rates rise, consumption expenditure and investment _______ and aggregate…
A: Aggregate demand is the measure for the total amount of finished goods and services that is produced…
Q: Draw an ADAS graph at equilibrium. Suppose there is an increase in government spending. Which curve…
A: The following diagram shows the AD-AS graph at equilibrium.
Q: The price of gummy bears, a close substitute for jelly beans, increases. 3. According to the event…
A: Here, it is given that gummy bears and jelly beans are close substitutes, which implies that one of…
Q: If the government increases alcohol taxation how will it affect consumption?
A: Taxes are the amount levied on goods which increases the price of good making the consumers to pay…
Step by step
Solved in 3 steps with 1 images
- How does fixed cost affect marginal cost? Why is this relationship important?Are there fixed costs in the lung-run? Explain briefly.A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
- Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?What two lines on a cost curve diagram intersect at the shutdown point?Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6
- The graph shows the short-run cost curves of a toy producer. The market has 1,000 identical toy producers. The market price of a toy is $21. In the short run, the firm produces toys a week. 24- 21- 18- 15- 12- 9- 0 500 1000 1500 2000 MC ATC AVC 2500The following is a total cost curve. Total cost ($) 1000 900+ 800- 700- 600- 500- 400- 300- 200- 100- 04 50 TC 100 150 200 250 300 350 Quantity (q) Q On the diagram to the right, sketch the corresponding marginal cost curve. Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. Marginal cost per unit ($) 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00 0.00+ 0 50 100 150 200 250 Quantity (q) 300 350 Q After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end your curve.OutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?
- QUESTION 9 John lives in the small island nation of Vanuatu, and is a producer in the perfectly competitive market for galip nuts. A summary of some of his costs, which are given in the local currency (the "vatu"), is shown below. Quantity (kg of galip nuts) 0 30 60 90 120 150 Total Fixed Cost TFC (vatu) 5600 5600 5600 5600 5600 5600 Total Variable Cost TVC (vatu) 0 640 1520 2640 4800 9120 If John's profit-maximising quantity is 90kg of galip nuts, what is the marginal revenue per kilogram of galip nuts at this profit maximising quantity? Answer to the nearest whole number.Cost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm increased its output from 100 units to 200 units and from 200 units to 400 units? c. What is the firm experiencing as it increased it scale of operation from 100 units to 400 units? d. What is the firm experiencing if it chooses to produce at point P? Give reason for your answer. e. Which point would be the best point for the firm to produce at? Give reason for your answer.The following is a total cost curve. Total cost ($) 1000- 900- 800- 700- 600- 500- 400- 300- 200- 100- 0- 0 TC 50 100 150 200 250 300 350 Quantity (q) Q On the diagram to the right, sketch the corresponding marginal cost curve. Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. Marginal cost per unit ($) 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 50 100 150 200 Quantity (q) 250 300 350 After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end your curve.