Derive the relationship between MPL and MC algebraically. Why is this relationship critical to showing how the law of diminishing returns affects our expectations regarding SR costs?
Q: Given cost and price (demand) functions C(q)=110q+45,000 and p(q)=−1.8q+900, What price should be ...
A: Given; Cost function; C(q)=110q+45000Demand function; p(q)=900-1.8q At profit maximization:- ...
Q: Define privatization in 30 to 40 words. The definition should be strong and in your own words. Thank...
A: Private sector is defined as that sector of the economy which is owned by private individuals or pri...
Q: The Laspeyres index is the ratio of the price of goods at prices to the price of goods at prices. O ...
A: Laspeyres index refers to the price index of Fixed quantity of goods and services
Q: With an inverse demand equation of P = 10 – 0.05Q and an inverse supply equation of P = 1 + 0.10Q: ...
A:
Q: . The mercantilists maintained that: a. Trade benefits one nation only at the expense of another nat...
A: Mercantilists were of the opinion that the country should always be in a Trade surplus that is the e...
Q: A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the ...
A: Perfectly competitive industry It refers to a industry in which there are large number of buyers and...
Q: Explain how an increase in oil prices will accelerate transition to a backstop technology.
A: A backstop technology is a new technology that produces a near counterpart for an exhaustible resour...
Q: Ashortage is when there is more demand than there is supply. You can find it by subtracting the quan...
A: Market Equilibrium when the market demand is equal to the market supply. In the table, quantity dem...
Q: The price elasticity of demand for a product is estimated to be -2.3. At the initial price of $20, t...
A: Elasticity of demand measures the quantitative change in the demand in response to change in the pri...
Q: A central bank that increases the money supply in its economy has more effect on spending the more i...
A: The total volume of money that is being held by the public at a particular point of time in the econ...
Q: 1. Why do employers typically pay for specific skills? These skills only work with one employer, thu...
A: Specific skill can be the ability of a person to do something that others are not able to do.
Q: (1) A consumer's utility function is given by u (z_y) := z/2y/2 for any nonnegative z and y, represe...
A: Utility function : U = x1/2y1/2 Price of x = Px Price of y = c1 Income = m Budget Constraint will ...
Q: What is the meaning of Public-Private Partnership as a policy strategy of the government for service...
A: Public sector refers to that portion of the economy which consists of levels of government and the e...
Q: Suppose that you are a bank with the following: $200 of capital, and $2,000 of deposits. In this ec...
A: Given the capital = $200 Deposits = $2000 Reserve requirement = 7% Cash drain = 3%
Q: An external cost arises from the use of fossil fuels because of global warming. If fossil fuels are ...
A: Here, it is given that the external cost is associated with the use of fossil fuels due to the issue...
Q: 4. If there is a surplus of video games, what needs to happen to the price for the market to reach e...
A: Price Qua100ntity Deman90ded Quantity Supplied 100 100 1100 90 200 1000 80 300 900 70 4...
Q: Which of these is not a time-dependent economic indicator? A. IRR B. MARR C. ERR D. B/C ratio
A: The indicators that allow an analysis of the performance of the economy and predictions of the perfo...
Q: The smartphone producer controls the privacy settings on the smartphone. The smartphone producer cho...
A: Since the question you have posted consists of multiple parts, we will answer the first two parts fo...
Q: We estimate the following regression: y = Bo + B1¤1 + B2x2 + B3r3 + B44 +u using a sample of 85 obse...
A: We have given a regression equation in which 4 independent variables. Sample size =85 SSE ( Estimat...
Q: The unemployment rate is 11.5%, the natural rate of unemployment is 7.5%, and the potential rate of ...
A: Given information: Current unemployment rate: 11.5% Natural unemployment rate: 7.5% Potential GDP r...
Q: Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed i...
A: Here, the given table provides information about the total revenue and total cost of a monopolist at...
Q: You are running a chocolate factory and need to decide on the price to sell the chocolate as well as...
A: Profit maximiser firms decide to charge price and output determination is set when marginal cost and...
Q: Use the graph and the inverse demand equation (P=50 - .5Q), inverse supply equation (P=0.333Q) and t...
A: here in this question we find that the inverse demand function=P=50 - .5Q where the slope of the dem...
Q: 3. In 1986, the CPI stood at 109.6 while in 2016 it stood at 240.0. In 1986, a new Toyota Corolla LE...
A: Consumer price index is the weighted sum of a consumption basket used to gauge inflation rate in the...
Q: Given: Market for Flowers Price of Flower/boquet 100 330 500 Qd (x) of Flower/boquet 40 Point Price ...
A: Given information
Q: An investor has decided to commit no more than $80,000 to the purchase of the common stocks of two c...
A: The optimal price is the one that maximises the seller's overall profit. When a price is set too low...
Q: A country puts in a quota limitation on the importation of cherries into their country. Cherries imp...
A: Here, it is given that the government imposed quota on the importation of cherry in the country, whi...
Q: 3. How much do you need to deposit today (P) to withdraw BD25,000 at n=1, BD3,000 at n= 2, and BD5,0...
A: Given amount to withdraw in year 1 = 25000 Year 2 = 3000 Year 4 = 5000 Interest rate = 10 %
Q: 1. After the completion of the Associate Degree (first 2 years of college education), you have a cha...
A: Human capital refers to the economic value that a worker adds through the skills and experience acqu...
Q: 2. There are three student canteens serving different types of foods located at the campus. Table be...
A: [a]In the given details regarding the total cost incurred on the number of students served in the pa...
Q: What would be the rational for Product customisation impact on revenue and profitability
A: People expect companies to personalize their products and services to their individual needs in the ...
Q: How did Japanese private and public sector labor policies affect Japanese production during its high...
A: Japanese private and public sector labor policies have been affected most of the Japanese production...
Q: Assume that the annual rate of inflation is expected to be 4 per cent per annum for the next five ye...
A: When a currency's value decreases over time, it is called inflation. Over some time, an economy's av...
Q: The figure below shows a simple macroeconomic consumption model. The letters N and D indicate curves...
A: The term "savings function" refers to the standard equation of savings that defines the relationship...
Q: 27) What do we know about fixed costs? A. They are incurred only when production is at capacity B...
A: The firms operating in a market incur two types of costs, fixed costs, and variable costs. Variable ...
Q: The idea of _________ in economics is that we have unlimited wants but limited resources. (A) Opport...
A: Answer: The right answer for the above mentioned statement is option : "B" Scarcity
Q: (2) Consider the utility function u(z,y) := ry for all nonnegative z and y. Given the budget constra...
A: Utility function : U = x1/3y2/3 Budget Constraint : px*x + py*y = m Optimal consumption point is ac...
Q: or the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in...
A: Given: Annual equivalent worth=$500 Interest rate (i)=10% per year Gradient=G Number of years(n)=7
Q: Which best describes producer surplus? O a. The profits made by a firm O b. The difference between t...
A: "As per the guidelines answer is provide to the first question": "Producer surplus indicates the di...
Q: The following graph shows the domestic supply of and demand for maize in Burundi. The world price (P...
A: A country becomes an importer when world price is less than domestic equilibrium price as at world p...
Q: 33) In a competitive market that is characterized by free entry and exit, what will be the result? ...
A: The market where there tend to exist many producers that tend to compete in order to provide consume...
Q: Burger King is a monopolistically competitive firm. Suppose Burger King's demand increases but its c...
A: The strategy of brand differentiation is intimately linked to monopolistic competition. It's a type ...
Q: The vertical distance between ATC and AVC is equal to TVC O AFC
A: 1. ATC = AFC + AVC Therefore AFC = ATC – AVC 2. AFC curve is downward sloping with increase in out...
Q: (3) Solve for the profit-maximizing quantity.
A:
Q: Given cost and price (demand) functions C(q)= 110q + 44,600 and p(g) = - 2q + 860, what is the margi...
A: p(q)=-2q+860TR=p x q =(-2q+860) x q =860q-2q2MR=860-4qNow, at production level of 55 items,M...
Q: Two mutually exclusive investment alternatives are being considered by an automotive engineering man...
A: Given information Alternative A Initial cost=13000 Mean annual operating cost and maintenance cost=5...
Q: 1. Consider the utility function given by u (x1, x2) = x1x%, and budget constraint given by Pixi + P...
A: Given information U=X1X22 Budget constraint P1X1+P2X2=W
Q: 1. What are the 3 components for Economics Efficiency ?
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: The simple linear regression model in the exhibit 2 data shows that, Both the intercept and the IDV ...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Consider an economy that lacks any safety regulations. After a review of various incidences of workp...
A: a) Many economic transactions take place in an environment of imperfect information, in which either...
Derive the relationship between MPL and MC algebraically. Why is this relationship critical to showing how the law of diminishing returns affects our expectations regarding SR costs?
Step by step
Solved in 3 steps
- The figure shows the initial LRAS and SRAS curves. - Answer if the expected price is higher than, lower than, or equal to 20? - Additonally, answer how would SRAS curve shift here after: Leftward, Rightward, or No shift?Tom Tolkien, the CEO, is not happy with the quality of information being presented by his business manager. He asks the best economic consultancy firm in the country to provide an accurate macroeconomic forecast, which they guarantee would be 100% accurate. What is the most that Tolkien Transport should be willing to pay the research firm for this information (in other words what is the value of perfect information concerning the state of the economy)?Suppose the US economy enters a recession. During the recession, inflation falls and interest rates rise. What kind of change ("shock") to demand and or production is likely cause of the recession? Answer in one short paragraph. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Best Buy sees its earnings drop in the early part of November and late October (before Black Friday sales). The cause for this drop is because future price is; to :: increase therefore current demand will :: decrease :: remain the same :: expected :: required :: unchangedWhich of the four costs relevant to aggregate production planning is the most difi cult to accurately measure?How will planned investment spending change as the following events occur? a) The interest rate falls as a result of Federal Reserve policy. b) The U.S. Environmental Protection Agency decrees that corporation must upgrade or replace their machinery in order to reduce their emissions of sulfur dioxide. c) Baby boomers begin to retire in large number and reduce their savings, resulting in higher interest rates. Thank you very much for your help.
- Suppose that firms produce according to the production function Y = AK1/2L1/2, where A = 5 andL = 400. Assume that the prices of capital and output are equal and that the real interest rate, r, isequal to 0.25 and the depreciation rate, δ, is equal to 0.1.1. If firms operate according to the neoclassical theory of investment, what is the optimal levelof capital stock, K (YP) to rich (YR).22. Suppose that the government offers an investment tax credit which changes the relative priceof capital. This results in Pk = 3 and P = 6. What is the new optimal level of capital stock,K??3. Does the investment tax credit have an expansionary impact on the economy? Explain whyor why not.4. Based on the optimal capital stock computed in part (2), what is the level of investmentneeded to sustain this level of capital stock?What are the three main assumptions of the cumulative causation theory?Describe, in detail; how you can best fix the problem (provide pluses and minuses associated with your supplied problem solution)? The phase of recession is the phase of business cycle in which the economic activities experience the downward trend. The demand in the economy falls , business investment decreases because of decreased scope of sales and unemployment rises leading to fall in GDP. The root cause inside the case is the declining sales and productivity of Moto's Integrated Controls Division (ICD) because of a drop in worldwide demand for machine devices prompted by the recession and savage rivalry. The ICD detailed a 5% downfall in sales in 1982 and again in the initial a half year of 1983, which put the future of the business in uncertainty. To keep the business running, the company needed to justify spending $3 million which it had done on various kinds of technological improvements and innovations , and there were questions about whether the investment could be…
- Expectations of higher future prices cause firms to lower prices today to sell their product before prices rise? True or falseFind the value of MPC if the value of the MPS is given as 0.33Suppose the U.S. economy was at trend and now benefits from a boom in Asia, which raises āez by 0.015. All other demand parameters remain unchanged. In order to maintain Ý, = 0, the Federal Reserve raises the real interest rate R, by 0.6 percentage point. Based on this information you know that b =