Why is perfect competition assumed to be the best market situation in most cases? Draw a graph showing the long run result of perfect competition and explain why it benefits society.

Q: K Ã₁ K A Consider the following diagram, which depicts the Keynesian model of an open economy with…

A: Economics is the social science that studies how individuals, businesses, and societies allocate…

Q: You are an analyst covering the oil and gas markets. You know from experience that natural gas and…

A: You are an analyst covering the oil and gas markets. You know from experience that natural gas and…

Q: The table sets out the data for an economy when the government's budget is balanced. Calculate the…

A: Equilibrium interest is the rate of interest where in the given table, the loanable funds demand is…

Q: What depresses wages and creates unemployment?

A: Unemployment refers to the condition in which individuals who are willing and able to work do not…

Q: Identify the pure-strategy Nash equilibrium (P1, P2). O (P1, P2) = (A, A) O (P1, P2) = (A, A) O (P1,…

A: The best response strategy is defined as the strategy which gives the player the maximum payoff…

Q: Suppose the economy is operating at a point where output is less than the natural level of output.…

A: A recessionary situation, often referred to as a recessionary gap, occurs when the actual level of…

Q: The following graph shows the domestic supply of and demand for soybeans in Zambia. Zambia is open…

A: Tariff is a term used in international economics.. Tariff means the tax imposed on the trade that…

Q: Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that…

A: When in a small town in a remote area where only two residents, Maria and Miguel , own dairies that…

Q: Refer to the figure, which shows a country's possible production possibility frontiers and…

A: PPF is the production possibility frontier.PPF shows the production possibility of two goods in an…

Q: The records kept by a large department store indicate that, in the past, weekly sales have averaged…

A: The records kept by large department store indicate that, in the past, weekly sales have averaged…

Q: A company is considering purchasing a new machine tool. In addition to the initial purchase and…

A: Present worth is the current value of future cash flows, calculated by discounting them to their…

Q: Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production…

A: This concept refers to the distribution of factors of production (capital and labor) in different…

Q: Discuss in detail how the Fed utilizes tools that can be used to control the money supply. Feds…

A: A federal reserve is a central banking system established by a government to regulate the money…

Q: A supply curve does all the following, except     uses the Ceteris Paribus assumption.     holds…

A: A supply curve is a graphical representation that shows the quantity of a good or service producers…

Q: You pay a plumber to install a new dishwasher in your home. Which statement is FALSE? a. You…

A: You pay a plumber to install a new dishwasher in your home. There is a trade of service and money…

Q: Given the individual utility function U = 10x^0.5y^0.5. With income, m = $40, the price of good x,…

A: U=10x0.5y0.5Therefore, Marginal rate of substitution (MRS) will be:At optimum, MRS = Price…

Q: The Ministry of Misallocation has decreed that the production of widgets must be 2000 each month and…

A: In the free market, the equilibrium price and quantity is determined through the forces of demand…

Q: The inverse demand curve for steel is P = 300-Q, where price P is dollars per ton and output Q is…

A: Given,P = 300 - Q,where price P is dollars per ton and output Q is millions of tons of steel.MC' =…

Q: Suppose there are two goods beverage and pizza and two inputs land, T, and labor, Given atb=5001,…

A: In economics, a production function illustrates the relationship between the quantity of output…

Q: Using both the liquidity preference framework and the supply and demand for bonds framework, show…

A: In this problem, the economy expands given the economic indicators are showing positive signs, while…

Q: The supply of credit cards is given by q = 1 400X, where X are real credit card balances, q is the…

A: Using the Quantity Theory of Money (QTM) equation, which relates the money supply (M), the price…

Q: On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve…

A: Deadweight loss is the cost that society has to bear because of the inefficiency of the market…

Q: Banking crises have occurred throughout the world. What similarities do we find when we look at the…

A: A banking crisis refers to a situation where there is a widespread loss of confidence in the banking…

Q: 12. Elastic and inelastic supply The following graph plots a supply curve for some hypothetical…

A: Elasticity refers  to the responsiveness  of one economic variable like price  to changes in another…

Q: Suppose at the current price, the price elasticity of demand for a firm's product is ε = -1/2. Which…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Long Run Costs curves [are | are not ] always U-shaped. One way to prove this is to look at…

A: LRAC depicts the lowest possible average production cost, allowing entire production inputs to vary…

Q: 16 12 co 5 сл 2 20 Reference Ref 4-13 40 O C. $70 OD $210 60 D (Figure: Determining Surplus and…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: The following graph displays four supply ourves (LL, M, NN, and 00) that intersect at point v PRICE…

A: Price elasticity of supply shows how much sensitive is quantity supplied to price change.When…

Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…

A: The initial cost in the plant is (A0) =$13 millionInvestment at the end of one year is $10…

Q: 1. Assume a pandemic hits a nation hard. As a result, firms are less confident about the economy.…

A: Loanable funds refer to the total amount of money available in the financial market that lenders…

Q: Can you explain how exchange rates are determined using the monetary and asset approach and draw…

A: The monetary approach to exchange rate determination emphasizes the role of money supply and demand…

Q: Figure: Monetary Policy Inflation rate, 10% 7% 5% 4% Z ... W X 1% 2% 3% 5% Short-run aggregate…

A: Monetary policy refers to the management of the money supply in the economy that controls the…

Q: Suppose that the Fed pursues an expansionary monetary policy by pushing real interest rates down,…

A: An expansionary monetary policy by Fed decreases real interest rates and the cost of capital,…

Q: 16 12 2 20 Reference Ref 4-13 40 OB. $50; $70.. OC. $30; $70 OD. $70; $280 60 (Figure: Determining…

A: A price ceiling is a government- or group-imposed price control, or limit, on how high a price is…

Q: You and your partner have become very interested in cross-country motorcycle racing and wish to…

A: Present value is the value of investment in today's dollar. The present worth is the current value…

Q: Question: This New Question – Only!!! Graph the demand curve?

A: The consumer utility function: Here qx is the quantity of good x and qy is the quantity of good y.…

Q: In order to compare the market value of various things produced within an economy, a common unit is…

A: Currency refers to a medium of exchange for goods and services. In short, it's money, in the form of…

Q: After the price of good Xincreases to $12 while the price of good Y remains $4, how many units of…

A: The graph defining the scenario is shown as follows:With the price increasing to $12 of good Y and…

Q: • A 38% increase in the quantity of jokers demanded • A 5% decrease in the quantity of hearts…

A: Income elasticity of demand measures the percentage change in demand due to percentage change in…

Q: panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a…

A: An alternative way to express the rate of interest on an investment is to use a discount rate, which…

Q: One of the best ways to learn how the complicated healthcare system in the U.S. works is to…

A: Unlike most other industrialised nations, the United States does not offer universal healthcare.…

Q: Economies of scale in purchasing and ordering refers to: -all the answers are correct - the ability…

A: A consumer's purchasing power represents his or her ability to make purchases. The economy affects…

Q: Refer to the graph. By producing at output level Q, this firm is in Price 0 MC ATC + MR Q₁ Q…

A: Productive efficiency refers to a situation in which a firm or economy produces goods and services…

Q: Tom makes annual payments of $12,204.21 per year on a loan. The loan was set at $42,000 at an…

A: Tom makes annual payments of $12,204.21 per year.The initial loan amount is $42,000.The interest…

Q: What is the role of the Federal Reserve or Fed in America?

A: The Federal Reserve System is the central banking system of the United States. It was created on Dec…

Q: Suppose that the utility function U(c, s) = c +2s3 describes Molly's preferences over two goods:…

A: Marginal utility is a fundamental concept in economics that refers to the additional satisfaction or…

Q: Required information In order to provide drinking water as part of its 50-year plan, a west coast…

A: An economical pipeline has the lowest overall cost over its useful life, taking into consideration…

Q: 4. Using diagrams for both the industry and a representative firm, illustrate competitive long-run…

A: Economics is the social science that studies how individuals, businesses, and societies allocate…

Q: If the absolute value of the price elasticity of demand for season football tickets is 0.3, to…

A: The absolute value of the price elasticity of demand is 0.3We need to tell whether to increase or…

Q: Consumer Willingness to Pay $24 20 Anya Basil Celeste Dralon Esther 15 12 7 Refer to Table 4-2. The…

A: Consumer surplus refers to the surplus of the consumer when the price he paid is less than what he…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).