What kind of externality is in the market above? a. negative consumption externality b. positive production externality c. positive consumption externality d. negative production externality

Q: A linear programming problem has two constraints 2X + 4Y ≥ 100 and 1X + 8Y ≤ 100, plus…

A:

Q: What is the function of an economic system * to coordinate production and distribution of goods and…

A: The many laws and ordinances that make up the economy are referred to as the economic system.…

Q: a). why does the existence of rival league often lead to mergers?   b) will the post merge wage be…

A: A Merger is defined as an amalgamation of two or more firms, either to form a new firm or join into…

Q: QUESTION 11 If the price elasticity of demand for any product is equal to 1, this means that…

A: If the price elasticity of demand for any product is equal to 1 .

Q: A consumer has utility u(x₁, x₂) = x₁ + x1x2. Suppose that, because of a shortage of good 1, the…

A: Utility function  : u(x1 , x2 ) = x1 + x1x2  Price of good 1 : P1  , Price of good 2 : P2  Income =…

Q: Explain intuitively (or give a specific example) and show graphically what a risk premium is.

A: Financial economics refers to the branch of economics that analyzes the use and distribution of…

Q: To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for…

A: The marginal cost is the adjustment of the total cost that emerges when the quantity produced is…

Q: For the following scenarios, use the supply and demand graph to predict the resulting changes in the…

A: The national savings rate is the GDP that is saved instead of spent in an economy. It is computed as…

Q: 15. All else equal, a decrease in reserve requirements will cause a.state and local government…

A: All else equal, a decrease in reserve requirements will cause.

Q: Jenna plans to donate annually to her favorite charity. She wants her annual donation to have the…

A: Future value refers to the value of a current asset at a future date on the basis of the assumed…

Q: You are the Minister of Trade for a small island country with the following annual PPC: Coconuts Per…

A: A country has the comparative advantage in the good which they can produce at a lower opportunity…

Q: If you deposit $10658.1 into an account paying 5% annual interest compounded semi-annually, how much…

A: Deposit Amount =10658.1 Interest rate = 5%   (Compounded Semi- Annually ) Effective Annual  Interest…

Q: What is a relevant example of how a change in the market (including information, preferences,…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first question for you. If…

Q: What is individual Marginal Propensity to Consume and Marginal Propensity to Save?

A: Individual Marginal Propensity to Consume is the change in consumption due to the change in the…

Q: Suppose a new process was developed that could be used to make oil out of seawater. The equipment…

A: Given,  A new process has been developed which may be used to make oil out of seawater.  The…

Q: The market for gasoline i. Scenario 1: Electric cars have increased in popularity.  ii. Scenario 2:…

A: A demand curve can shift so that more or less of the commodity would be demanded at any commodity…

Q: Justin’s Jeans sells in a perfectly competitive market with a downward-sloping demand curve and an…

A: Here we have perfectly competitive market with the market price is $33 / unit and this firm has…

Q: The price for widgets rises from 4 to 5. As a result, the demand for widgets drops from 20 to  5.…

A: Elasticity in economics refers to the change in quantity demanded or supplied as a result of…

Q: Which one among these is not one factor that makes health care service difficult to insure?…

A: The healthcare demand is usually complex due to many reasons such as consumers does not has the…

Q: Which of the following most accurately describes direct finance? The lenders and borrowers come…

A: Direct finance occurs when the funds moves directly from lender-savers (i.e. investors) to borrower-…

Q: Question 11 At point A, how many units of All Other Goods is the person buying? All Other Goods A…

A:

Q: The government is considering intervening in this market. A. Calculate the producer surplus at the…

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

Q: Consider a society consisting only of Helen, who allocates her time between sewing dresses and…

A: A model used to illustrate the trade-offs related to splitting resources between the production of…

Q: Consider an individual with preferences over two goods. This consumer is maximising utility when:…

A: According to consumer choice theory, when faced with a limited budget, consumers seek to maximize…

Q: e) Suppose that after the imposition of the price floor, the demand in Shiva increases by 1.5…

A: A price floor refers to the lowest allowed price that may be paid in a market for products and…

Q: A consumer has preferences over two goods represented by the utility function (1₁,1₂)= 71 +2√72. (a)…

A:

Q: m-3 is xi (m, P₁, P₂) 9. Suppose there are 2 goods in the economy and the demand function for Good 1…

A: Given  Demand for good 1 is given by  x1(m,p1,p2)=m-3p1 when m≥3else x1(m,p1,p2)=0…

Q: -XYZ Inc. plans to construct and additional building at the end of 10 years for an estimated cost of…

A: Present value is the value of investment in todays dollar.    Future value is the value of…

Q: There are two energy suppliers, Origin and Globird, and each has two possible actions: to introduce…

A: We have sequential move game where origin moves first and then Globird moves.

Q: 11. Compute the effective interest rate per semi-annual Nominal rate = 13.1% compounded yearly

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: 3) You were recently chosen to be the new CEO of Rocket to the Moon, a company that contracts with…

A: The Bertrand model uses the price of a unit of a product to effect market demand, whereas the…

Q: Transform the cash flows on the left-hand side of the accompanying diagram to their equivalent…

A: A cash flow is a real or virtual movement of money: a cash flow in its narrow sense is a payment,…

Q: An individual is observed throwing money into the sea. Is this behaviour consistent with the…

A: In economics, optimization aims at achieving efficient usage of the resources—maximization of…

Q: 1. An analyst ran a regression with four predictor variables. Variable description Salary in…

A: Regression analysis refers to the prediction of the dependent variable by the independent variable.…

Q: 28. Soda is produced in the market shown in the graph below. Answer the following questions based on…

A: Government could decrease consumption of a good by imposing the tax or price ceiling or a price…

Q: Consider the macroeconomic model shown below: C = 500+ 0.80Y I = 1,500 G = 1,000 NX = - 100 Y=C+I+G…

A: Macroeconomic model is the model of economics with the larger scale of economic factors , or…

Q: 3. Sam budgets $40 a week for her weekday lunch. She only considers two options: sandwiches (x)…

A: Budget constraint is derived from different combinations of two goods that are affordable.

Q: Economics is the study of how people choose to use their resources to satisfy their unlimited;…

A: According to Lionel Robbins, economics is the study of scarcity. Economics has a lot of definitions…

Q: Why is there a price hike in sugar in the Philippines?

A: A rise in price expressed as a percentage of goods or services. The demand for goods increased as a…

Q: How can we reduce unemployment in the United States? Write in four Paragraphs

A: A person is known as unemployed when all the following three conditions are fulfilled:(a) Have…

Q: Carefully explain what is happening in the market. Indicate the impact if any on demand, supply,…

A: Rightward shift in demand = increase in demand without change in price.  Leftward shift in demand=…

Q: How much time it take for an amount of Rs.450 to yield Rs.81 as interest at 4.5% per annum of simple…

A: A simple interest computes the interest on savings or loans without compounding. It is simple to…

Q: QUESTION 18 An improvement in the technology used to produce cars will shift the Supply curve to the…

A: Rightward shift in supply curve shows the increase in supply without any change in its price.…

Q: In the graph below, assume that the original demand and supply curves are given by D₁ and S,…

A: Equilibrium is a state of rest in the market where the forces are in a steady state and do not…

Q: With the same production function, move the points to graph the marginal product of labor. Marginal…

A: Given  Quantity of workers (L) Quantity of bricks (thousands of bricks)  0 0 1 10 2 18 3…

Q: It has been argued that inflation and unemployment are both good and bad. Explain. Are government…

A: A rise in the price of goods and services that households purchase is referred to as inflation. It…

Q: QUESTION 20 A completely horizontal demand curve represents a Perfectly elastic demand. O Elastic…

A: When the demand curve is completely horizontal means the demand curve is parallel to the horizontal…

Q: Each firm in a competitive market has a cost function of: so its marginal cost function is The…

A: In a competitive market , The firm will produce at point where MC = P  Equilibrium price is the…

Q: A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a…

A: Question A typical profit-maximizing firm in a perfectly competitive constant-cost industry is…