Q: Discuss the contributions of Paul A. Samuelson to capital market efficiency
A: The concept of capital market efficiency holds that financial markets accurately represent all…
Q: Keynes used the term “animal spirits” to refer to business optimism or pessimism that affects…
A: John Maynard Keynes was a British economist who lived from 1883 to 1946. He is widely regarded as…
Q: why do credit cards charge higher interest than home and car loans? please help me with this…
A: A credit card is a type of payment card that enables the cardholder to borrow money from a bank or…
Q: Consider the labour market represented in the following graph: real wage positive output gap K W P…
A:
Q: hy were banks originally created? How has their purpose evolved over time?
A: A bank is a type of financial institution that takes client deposits and lends or invests the money.…
Q: 1. The multiplier effect of a change in government purchases Consider a hypothetical closed economy…
A:
Q: Suppose the following table shows the components of aggregate expenditure for an economy when…
A: Given When disposable income is $250, the investment is $200, and when disposable income increase…
Q: Briefly discuss multiplue government interventions in the market that you would consider an…
A: Government intervention refers to actions taken by a government to influence or regulate economic…
Q: 1. A general form of the Cobb-Douglas production function is given by Q = AK&L³ where A, a, ß are…
A: The marginal product for labor and capital is calculated as MPL=∂Q∂L and MPK=∂Q∂K Diminishing…
Q: using the toilet paper rise in demand in early 2020 due to thee pandemic, illustrate a diagram of…
A: The term "equilibrium" in economics refers to the situation where there is an equal amount of supply…
Q: Consider the following utility function: U(x, y) = = xy x-y (a) Derive the MRS of x to y. Show your…
A: The utility function is the mathematical relationship between the utility and different bundles of…
Q: Explain the Indian economy?
A: An economy is everything engaged with overseeing assets in a specific spot. Assets are things known…
Q: What's the answer I can't see it
A: Demand for good X with respect to good Y is cross-price elastic: With every 1% increase in the price…
Q: A firm is said to operate with constant returns to scale if its production cost increases by four…
A: Return to scale refers to the change in the total output when the all factors are changed. Returns…
Q: 1. The federal budgetary process This table shows three stages in the federal budgetary process.…
A: The government budget gives the objective and financial path of the govt in the process of the…
Q: An individual is consuming two goods, good x and good y. His utility function is given as Perfect…
A: The usefulness of goods and services to consumers can be assessed using the utility. While new…
Q: In the year 2027, aggregate demand and aggregate supply in the imaginary country of Aso-Kuju are…
A: Aggregate Demand is defined as the total amount of goods and services produced in an economy…
Q: A country's Central Bank is characterised by the following Loss function (L) and Phillips Curve…
A:
Q: Use Figure Four on page 10 to answer (4). In the long run: a)what is the monopolist’s output?…
A: A market formation is characterized by a single seller, selling a unique product in the market. In a…
Q: 8 Which of the following would increase the size of an economy's deposit multiplier? a) If banks…
A: The maximum quantity of money that can be produced using the fractional reserve banking system is…
Q: If the marginal utility of the burger is greater than the price of the burger, we expect a rational…
A: Consumer surplus refers to the difference between the maximum amount that a consumer is willing to…
Q: 17 The graph below depicts an economy where a decline in aggregate demand has caused a recession.…
A: Given information: Initial long-run equilibrium occurs at the intersection point of LRAS, AS, and…
Q: Differentiate between the economy of Philippines and kenya. Mention the key points and explain.
A: The system or network of products and services production, distribution, and consumption in a given…
Q: The following equations describe an economy: Y = C + I + G + X – M [where X=exports, M=imports] C…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. At…
Q: nterpret the change you drew on the previous graph by filling in the blanks in the following…
A: The long run supply curve depicts the potential output of the economy. It is known as potential…
Q: a. What increase in aggregate demand is necessary to achieve this? S billions. b. If successful,…
A: Aggregate demand curve is the sum of Consumption, Investment, government spending, and net export.…
Q: The first table that follows shows government expenditures as a percentage of GDP for selected…
A: Fiscal Policy refers to the use of government spending and taxation to influence the economy. The…
Q: 5. Automatic adjustments to the government budget The following table provides some information on…
A: Budget Deficit = Government expenditure - Tax Revenue
Q: The economy grows 3.59 percent per year over a 20 year period. 0.67 percent per year is attributed…
A: Technological progress refers to the advancement of technology over time. This includes improvements…
Q: The average cost of a firm producing a product in an area declines as the output of that firm's…
A: Economies of scale that occur outside of a company but within the same sector are known as external…
Q: Year 1 -2345 Output of Cheese 7 10 13 16 25 Price $15 18 25 23 21 Price Index PI: 120, NGDP: $180,…
A: Price index is calculated by dividing the base year price from current year price and then…
Q: 13. Government intervention in the form of a binding price floor or a binding price ceiling will:…
A: Government intervention is the term for acts made by a government to control, influence, or regulate…
Q: monopoly's decision on output does not dtermine the price of output
A: A monopoly market is a type of market structure in which there is only one seller, who has complete…
Q: If the U.S. Congress passes a budget for this year that includes goverment spending of $5 trillion…
A: When the U.S. Congress passes a budget, it sets out how much money the authorities plans to spend on…
Q: You estimated a regression with the following output. Source | SS df…
A: A regression line is a straight line that represents the relationship between two variables in a…
Q: If the costs of producing tomatoes increase, what is the likely impact on equilibrium quantity?…
A: Demand curve for a product depicts the inverse relationship between price and quantity demanded,…
Q: 4. Determine the exact simple interest on P5,000 for the period from Jan. 15 to Nov. 28. 1992, if…
A: Simple interest is a type of interest calculation in which the only factor taken into account when…
Q: You estimated a regression with the following output. Source | SS df…
A: First of all, we have to discuss the regression equation. Regression equation is one kind of…
Q: A rational consumer has a utility function that follows all of the characteristics explained in…
A: Utility function : U = 6x11/3y2/3 Price of x = 20 Price of y = 6 Income = 400 Therefore , Budget…
Q: if the labor force is 250,000 and the total population 16 years of age or older is 300,000, the…
A: The labor force participation rate is calculated as the labor force divided by the working age…
Q: At $87, a firm can sell 4,660 stereo earphones (3.5 mm for android) elasticity is estimated at 2.2.…
A: price of stereo ear phones=$87 Quantity Supplied=4660 unit Es=Elasticity of supply is 2.2 The…
Q: Q17. What is a general partnership in Canada? a) A business owned by two or more individuals…
A: A general partnership is a sort of business entity where two or more people jointly own and operate…
Q: Which of the following do economists not generally regard as a legitimate reason for the government…
A: Classical economists contend the role of government should be small and on second thought the…
Q: The market price of milk without government intervention is $ per gallon. Consider legislation that…
A: Surplus refers to the difference between the value or benefit that an individual or group receives…
Q: The table below shows hypothectical figures of revenue and spending for the Canadian government. For…
A: Net tax revenue will be calculated as tax revenue minus transfer payments. The transfer payments…
Q: he table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions…
A: Required reserves are found by multiplying demand deposits and target reserve ratio.
Q: Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering…
A: As we know, with a consumption tax equivalent to a tariff the demand curve will shift downwards by…
Q: Consider a Duopoly model, in which two firms decide a quantity simultaneously. The market demand is…
A: Cournot equilibrium is a concept in economics that describes a situation in which two or more firms…
Q: During the recovery period after an econom crisis: Select one: a. GDP and unemployment will rise b.…
A: During the recovery period after an economic crisis, the GDP (Gross domestic Product) is expected to…
Q: Cobb-Douglas: u(x₁, x₂) = x5x25; mo = 200; p₁ = 10; P₂ = 20; p₁ = 8. Solve for the CV and EV due to…
A:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
- 100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)
- Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?V See Hint Suppose that Juan sells burritos. The total cost of production, based on the number of burritos produced, is shown in the following table. Number of burritos Total cost ($) 1. 8) 2. 10 3) 13 4. 18 25 34 7. 45 Suppose that the price is $6. Assuming profit maximization, how many burritos will Juan sell? asopdneThe following graph plots daily cost curves for a firm operating in the competitive market for rompers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. (?) PRICE (Dollars per romper) 50 45 40 3.5 30 20 15 10 10 5 0 + 0 2 MC ATC AVC 4 6 8 12 14 16 QUANTITY (Thousands of rompers per day) 10 18 H 20 Profit or Loss
- 11. Explain the condition of equilibrium of a firm based on marginal cost and marginalrevenue. Need details explanation and make sure that no plagiarised answer3. You own WYNELL's Fashions, which sells prom dresses. Your firm has the following cost schedule: If vou produce this quantity The average total cost per dress is ... $100 40 $101 41 Your current output is 40 prom dresses, all of which have been sold. You receive a call from an eager potential customer, who offers to pay $150 if you will produce a prom dress for her Calculation space to show your work What would your profit or loss be on the 41st prom dress? (Show your work.)The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. Price ($/bushel) 60 50 40 30 20 10 0 0 ΤΑ 10 20 30 40 50 60 70 80 Quantity (bushels/month) Select one: O A. 50 bushels. C If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather: B. 30 bushels. O C. 20 bushels. O D. zero bushels.
