The figure below represents the productive activity of a research institute. Researchers create a positive externality because what they discover in their research labs can be learned by others who have not contributed to the research costs. The privately optimal level of production is:B C D E B C D E $ Ꭰ E C B Level of Activity
Q: On the following graph, use the orange points (square symbol) to plot points along the portion of…
A: Supply is the total amount of goods and services offered to the consumers for sale. Supply holds a…
Q: Draw a graph for a market where a negative externality occurs. Show the market supply curve and the…
A: An externality is an indirect cost to an uninvolved third party that arises as an effect of another…
Q: Assume there is $100 dollars in the economy that is deposited in a bank. Assume that there are…
A: Initially, $100 is deposited in a bank. There are multiple banks (let the bank name be Bank A, bank…
Q: Calculate net exports and the amount of net foreign lending for a hypothetical small open economy…
A: Net export : Net export is the amount by which the total value of exports of a country surpasses or…
Q: Label the descriptions as one of the official measures of unemployment. Some of these are included…
A: People who are not working but are able to work and must have actively looked for a job within the…
Q: An industrial juicier costs$45,000. It will be used for five years and then sold to market…
A: Net yearly savings is the amount of money that is obtained after deducting annual expenses from…
Q: How are these monetary aggregates constructed? There's no real logic. It's just a list that has been…
A: This can be described as the central authority of the banking system of that particular nation. The…
Q: Marc has a budget of $16 a month to spend on root beer and movie tickets. The price of root beer is…
A: A budget constraint represents the possible combination of goods and services that a consumer can…
Q: If the Bank of Canada were to conduct an open market sale, it would Select one: a. decrease the…
A: Open market operation is a monetary policy tool. Open market operation is the sale and purchase of…
Q: Exhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in…
A: The monopoly market is described as the single market characterized by one buyer and seller. There…
Q: A natural spring runs under land owned by ten people. Each person has the right to sink a well and…
A: The marginal cost refers to the additional cost of production incurred due to additional production.…
Q: 2. Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game,…
A: The expected payoff is the payoff that is expected to be gained after knowing the probability of…
Q: 9. If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an…
A: Annual demand refers to the aggregate demand for a particular product at given price level by the…
Q: elect one: A. shortage; rise OB. surplus; fall OC. surplus; rise OD. equilibrium; rise OE. shortage;…
A: The equilibrium refers to economic condition where demand and supply forces are equal. The…
Q: Consider the given diagram showing the monthly market demand for electricity, where the electricity…
A: Marginal private cost means the additional cost incurred by an individual or firm for producing one…
Q: 1. Tom International LLC has developed pessimistic, most likely, and optimis benefit data are given…
A: The Net present worth or NPW is defined as the the set or series of cash flow happening at different…
Q: Price B * MC-S MR Q₁1 Q₂ Q Quantity ATC DemandMarket A firm seeks to maximize total revenue. At what…
A: The Monopoly refers to market where only single firm exists in the market. Monopoly firm can earn…
Q: Please let me know the points. I will write it down in brief. the information available at the World…
A: ***Since the student has asked for any one of the subparts to be solved, the expert is required to…
Q: If the production function is F(K,L)=A∗K0.4L0.6 then the marginal rate of technical subsitution is
A: The objective of the question is to calculate the Marginal Rate of Technical Substitution (MRTS)…
Q: Instruction: Cut out from a newspaper or look for a news about issues and problems concerning…
A: The provided question has been answered from the generalized perspective of 'Development Economics'.…
Q: The dominant strategy of player 2 in the accompanying game is Player 1 S1 S2 t1 11,0 10, 100 Player…
A: In game theory, dominant strategy of a player refers to the outcome that a player prefers over all…
Q: ill in the missing values in the table of data collected in the household survey. The working- ge…
A: The labor force is the sum of employed and unemployed people. i.e., Labor force = Employed +…
Q: 8. Ch. 20 Problems and Applications Q10 Suppose that Congress passes a law requiring employers to…
A: The act of working and obtaining a living from it is what is known as employment. It's possible to…
Q: An unregulated natural monopoly bottles Elxir, a unique product with no substitutes. The monopoly's…
A: A monopoly company is a business that holds exclusive authority over manufacturing and distributing…
Q: Suppose the supply for a certain textbook is given by p=q and demand is given by p= -- where p is…
A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…
Q: A- A company is planning to introduce two new products: A and B. It is estimated that the price of…
A: A competitive market is one where no individual firm has the power to set prices. This is because of…
Q: The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the…
A: The difference in TR that a business makes when it sells one extra unit of its item or service is…
Q: Q2. The inflation rate in Japan is 1% per year, and the inflation rate in Korea is 3% per year. What…
A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…
Q: 1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: The information below provides conditions faced by a monopolistically competitive firm. $70 $65 $60…
A: The Monopolistic competition refers to competition where many firms exist in the market and each…
Q: Consider a country with a nominal gross domestic product (GDP) of $25 billion in 2016 and $30…
A: This can be defined as a concept that shows the total production of commodities and services in a…
Q: The distribution of income OA) is more even in developing countries than in the Russia B) is more…
A: This can be defined as a concept that shows the continuous progress in any nation it does not happen…
Q: Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also…
A: Price in 2015 = $16Price in 1994 = $10
Q: When they act as a profit-maximizing cartel, each company will produce information, each firm earns…
A: Oligopoly is a form of market organization in which there are few sellers of a homogenous or…
Q: A 50-kilowatt gas turbine has an investment cost of $42,000. It costs another $12,000 for shipping,…
A: Annual cost means all the money a company or person spends in one year. These variable fixed and…
Q: Suppose the US economy enters a recession. During the recession, inflation falls and interest rates…
A: This can be defined as a situation in an economy in which all the economic activity starts…
Q: A majority of economists believe that in the long run, real economic variables and nominal economic…
A: The aggregate demand curve shows the quantity of output that households, firms, the government, and…
Q: Contractionary monetary policy will decrease the money supply and interest rates, causing real GDP…
A: Contractionary monetary policy is a macroeconomic strategy employed by central banks to reduce the…
Q: The normal life cycle pattern of income reflects differences in earnings based on: a. age and…
A: This can be defined as a concept that shows a given nominal amount refers to how many units of…
Q: When the Central Bank ________ interest rates, bond prices ________. Select one: a. raises; remain…
A: A central bank is a financial institution responsible for overseeing a nation's monetary policy,…
Q: Problem 3. The marginal product of labor (i.e., the increase in total output if one more worker is…
A: Marginal Product of Competitor : MP = 5000/(x+ 2000 ) + e-0.001xInitial Staff = 700 Final Staff…
Q: The following graph shows the demand (marginal private benefits) and supply (marginal private costs)…
A: Positive externality in production occurs when the production of a good or service generates…
Q: Suppose that country Y is identical to country Z, with the exception that country Y's population has…
A: Autonomous expenditures are expenditures that do not vary with the economy’s real level of income.…
Q: Assume a firms production function depends on labour hours (L) only and is give F(L) = 5L0.8 .…
A: The production function shows the relationship between output and input. Here, only one input is…
Q: The plant manager has asked you to do a cost analysis to determine when currently owned equipment…
A: The Annual Worth is the equivalent uniform annual worth of all estimated costs and benefits during…
Q: 250 200 150 100 50 0 250 200 150 100 50 $ 0 0 0 10 Fig A. MRPL-VMP -PL-MFCL- MRP 20 30 VMPL Fig C.…
A: In Figure A, the firm's Marginal Revenue (MR) curve is situated below its Marginal Factor Cost (MFC)…
Q: Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving…
A: The per unit revenue by selling goods is AR(average revenue). The change in revenue due to a change…
Q: BNQ12.3 Case: Suppose you have Invested in a New Computer Company whose Profitability depends on 2…
A: The mutually exclusive states can be made on the basis of the events happening in the economy…
Q: 3. A village has six residents, each of whom has accumulated savings of $100. Each villager can use…
A: A government bond is an instrument of credit for the government, the public purchases the government…
Q: A natural monopolist has long run total cost c=32q-0.05q2, and demand p=40-0.15q. Calculate the…
A: First, let's understand the main terms: A natural monopolist refers to a situation where a single…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Differentiate between technical efficiency and economic efficiency with examplesd) What are the firm's fixed and variable costs? e) What would be the socially optimal Q* and P* (round to 1 decimal place if needed)?HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
- A farmer is located next to the rancher. They face the following problem.Cattle graze on the farmer's fields and cause $30 worth of damage to corn each year. The rancher's business is worth $100 annually (not taking into account any crop damage). The farmer's business is worth $80 before the cattle trample the corn It would cost $10 to build a fence that would keep the cattle off the farmer's property. If the farmer is given property rights If the rancher is given property rights O A. the rancher will pay the farmer $30 in damages; the farmer will accept the $30 in crop damages B. the rancher will pay the farmer $30 in damages; the farmer will build the fence O C. the rancher will build the fence; the farmer will build the fence O D. the rancher will build the fence; the farmer will accept the $30 in crop damagesSome companies use this as an umbrella term to encompass all CSR efforts that make business more sustainable in the long term, including environmental efforts: O bottom-line O ethics O philanthropic O sustainabilityThe government plans to construct a road to your village .it is envisaged that this project will increase income as all the villagers will be employed in one way or the other on this project .In performing the cost-benefit analysis of the project ,labor and income change become important cost and benefit components,respectively. True or false, and explain
- Suppose the government, as part of its fight against COVID, allows restaurants to open but requires customers to be socially distanced, reducing the number of tables and the maximum number of customers who can be served a. Give an example of a fixed cost associated with running a restaurant? b What costs would you expect to be part of the extra cost asSsociated with serving one more diner in the restaurant? c. How would you expect the social distancing policy to affect the marginal and average cost.of serving a meal? You might find drawing a diagram helpful. d. How would you expect the social distancing policy to affect the price charged fona restaurant meal? You might find drawing a diagram helpful. e What would you expect to be the effect of the sccial distancino policy on entry and extinthe restaurant sector? You might fino drawing.a diagram helpful.Show all work. Draw graphs to explain your answers. The correct answers will include areas on the graph and dollar values. Suppose a chemical factory discharges waste products into a river resulting in significant damages to a local fishery. The marginal damage to the fishery (measured in terms of the value of lost fish stocks) is represented by the equation:MDC = 10E The chemical factory can reduce its effluent flows by treating its waste products. Its marginal abatement cost (MAC) function is given by the equation: MAC = 1,200 - 5E. What level of emissions will occur if the chemical factory is not regulated? What would the total abatement costs for the chemical factory be if emissions are controlled and reduced to zero? If no liability laws are in place, what damages will the chemical factory inflict on the fishery? (Hint: find TDC) If the government puts in place a liability law that requires the chemical factory to compensate the fishery for the damages it causes,…Describe, with a diagram, what a Marginal Abatement Cost Curve shows and how it can be used for assessing interventions
- Complete the accompanying table and answer the accompanying questions: a. At what level of the control variable are net benefits maximized? b. What is the relationship between marginal benefit and marginal cost at this level of the variable? Control variable Q Total benefits B(Q) Total cost C(Q) Net benefits N(Q) Marginal benefit MB(Q) Marginal cost MC(Q) Marginal Net benefits MNB(Q) 100 1200 950 210 60 101 1400 70 102 1590 80 103 1770 90 104 1940 100 105 2100 110 106 2250 120 107 2390 130 108 2520 140 109 2640 150 110 2750 160Consider a competitive equilibrium with positive production externalities. In this econ- omy output will, (a) be equal to its Pareto optimal value. (b) exceed its Pareto optimal value. (c) be below its Pareto optimal value. (d) be where MRS.c = M RTL.c.Discuss the relevant economic approaches/theories that explain the issues raised in the article. You must demonstrate your understanding of the relevant microeconomic theories, e. g. demand theory, supply theory, market structures, elasticity theory, etc (15 Marks). ecoder now R999 with installation and the Explora PVR and Explora Ultra PVR's price rising to R1,999 and R2,999, respectively. Pricing for the Explora PVR and Explora Ultra PVR decoders does not include installation. These represent increases of R100 for the lower - specced decoder and R300 for the higher - tier decoders. Asked about the new prices, MultiChoice confirmed that they took effect on 1 February 2024. The decoder price changes are summarised in the table below. DStv decoder price changes Hardware Standalone/installed Old RRP New RRP HD Decoder Standalone R699 R799 HD Decoder Installed R899 R999 Explora PVR Standalone R1, 699 R1,999 Explora Ultra PVR Standalone R2, 699 R2, 999 MultiChoice announced price increases…