If product markets become less competitive and the markup rises, we wouldexpect:a decrease in the interest rate in the medium runno change in output in the medium runa decrease in the real wage in the medium runO no change in the real wage in the medium runO an increase in the aggregate price level as output increases

A competitive market is a construction wherein no single buyer or maker has the ability to impact…

Answered: O a decrease in the interest rate in…

O a decrease in the interest rate in the medium run O no change in output in the medium run O a decrease in the real wage in the medium run O no change in the real wage in the medium run

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Which of the following statements best describes the economic short run? O It is a period of one…

A: Every firm has two types of resources fixed and variable resources. The fixed resources are the…

Q: Assuming labor is the only cost for production, a firm hires labor up to the point at which the wage…

A: The term labor describes the physical and mental effort put forth by people to produce commodities…

Q: Сapital 10- 8- 7- 6- 5- A 4- 3- 2- B 1- 0- 9 10 11 Labor 1 2 4 6 7 8 Equilibrium Reference: Ref 7-5…

A: In the given graph, the combination of capital and labor is depicted by the lines and curve. There…

Q: The meaning of constant returns to scale is that as all inputs are increased: a. Average total cost…

A: The production function shows the relationship between the inputs used and output produced. The…

Q: How is the value of the marginal product of labour calculated? Select one: O a. by multiplying the…

A: Value of marginal product of labor =Marginal product of labor * price of the product.

Q: Suppose a huge scientific breakthrough doubles the output that an additional houra huge scientific…

A: Production function:Production function depicts the relationship between the total output produced…

Q: If the value of the marginal product of pie makers increased, a possible explanation could be Select…

A: Introduction The Marginal Product is the total product multiplied by a single variable input unit…

Q: Price Marginal Product Variable Input 1 Variable Input 2 $20 $30 A B Fixed Input $40 60 Suppose you…

A: The question is asking about the impact of a price increase for Input 1 on the purchasing decisions…

Q: A firm produces at an output level where the marginal products of labor and capital are both 50…

A: Marginal product is labor is the change in total cost due to an additional labor hired. Value of…

Q: The maximum possible weekly average product of labor in the plant is

A: Formula for average product/output: Average product = Total product / Number of worker

Q: When the rental rate for capital falls, the capital O A. quantity demanded of, decreases O B. supply…

A: As per law of demand, when price of capital decreases (increases), quantity of capital demanded will…

Q: a When he gets the opportunity to do so, Faizan increases the amount of capital his workers have…

A: The production function consists the combinations of inputs that can give maximum production. The…

Q: ver the very long run, which of the following has influenced the most on costs of production and on…

A: Answer in step 2. Note .post other part separately please ?

Q: In the long-run, all inputs are a. fixed. b. more expensive. c. less expensive. O d. variable.

A: Long run is the time period where the firm has enough time to change their any inputs. In long run…

Q: Suppose the retail managers in an economy demand extra merchandise from their wholesale…

A: * ANSWER :- * The OPTION D (the inventory levels in the economy are falling.)is correct answer.…

Q: Refer to Table 31. Suppose that you have a house that you rent out. If you keep the lawn maintained,…

A: A wage is payment made by an employer to an employee for work done in a specific period of time.…

Q: In the short run, the cost of O a. capital; labor O b. labor; capital c. electricity; wages d. raw…

A: In economics, the analysis of costs for a firm may be carried out in the short run or long run. The…

Q: 3. What is true about a function that has constant returns to scale? A. That increasing just labor…

Q: The substitution effect of a change in wage rate on a firm's demand for labor input will be more…

A: This can be described as a fundamental concept in microeconomics used to represent different…

Q: When a production function exhibits decreasing returns to scale, it means that: O A. a proportional…

A: The scale which helps in measuring the change in the level of productivity after increasing all…

Q: Suppose, inputs input prices do not change. If a given firm decides to double all its inputs, as a…

A: In a market, a firm uses input resources to generate output and the returns from input changes with…

Q: The short run is a period of time in which: OC. Prices and wages O A. The quantities of some…

A: Input resources are those resources that are used in the production process to produce the output.

Q: Oc. The marginal product of labour is rising as hours of study increase. O d. The marginal product…

A: Working hours is 40 hours per week and wage rate is 10 and then total income is 400 . To maintain…

Q: Al its current short-run evel of production, a irm's average variable costs equal $30 per unit, nd…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: The table below gives information on the short-run relationship between the units of labor and…

A: Total Product(TP) is the overall output produced by all units of a production factor such as…

Q: Using the value marginal product concept, what do you expect if the price of the product sold falls?…

A: Marginal Product The marginal product of an input is the additional output that results from adding…

Q: A significant property of the Cobb- Douglas production function is that the elasticity of…

A: To find : Elasticity of substitution input will be between which value.

Q: Along the vertical axis of the production function we typically measure O a. revenue. b. the…

A: A production function's vertical axis usually shows the overall output or level of production…

Q: In the long run: O A. all factors of production are variable. O B. all factors of production are…

A: The question is asking about the nature of factors of production in the long run. Factors of…

Q: Suppose that employment processes change so that more human capital is required for a given task.…

A: In a market, firms make changes in their business and economics activities due to which the…

Q: The wage rate is $20 per hour and the cost of capital is $30 per hour. At the current output, the…

A: Under the theory of production, a cost minimizer firm produces at a point where the ‘MRTS(marginal…

Q: 6. Suppose the hourly wage is $40, the price of each unit of capital is $50, and the price of output…

A: Note: There are multiple sub parts of the given question, therefore we shall answer only the first…

Q: What is the impact on the labour market due to a reduction the productivity of workers?

Q: in the short run and to Point in the long Refer to Figure 11.8. If the economy is at Point A…

A: Option (C).

Q: QUESTION 10 When Total product is at Maximum, Marginal product will be - O B. Negative ---- -- A.…

A: Total product (TP): - Total product is the amount of total final goods and services produced by a…

Q: 90 80 70 60 50 40 30 20 10 1 2 3 Capital 5 6 7 4 The marginal product of the third unit of and the…

A: Marginal product is defined as a change in the output which results from employing one more unit of…

Q: Figure 18-1 O $66 O $55 O $33 OUTPUT (Units) O $44 28 26 Hill 2 3 4 5 6 23 19 8 Refer to Figure…

A: Total product si the total no. of output produced by all the labor hired. Marginal product is the…

Q: Why might the SRAS curve be upward sloping? a. Price "stickiness" of certain input costs. Ob.…

A: The Short-Run Aggregate Supply (SRAS) curve represents the relationship between the price level and…

Q: The law of diminishing marginal product holds that as a variable input increases while other inputs…

A: The law of decreasing marginal product asserts that once a certain degree of consumption has been…

Q: The backward-bending supply of labour curve is based on consideration of income and substitution…

A: The labour-leisure is a trade off that is encountered by the labor for choosing between working or…

Q: Consider a factory that produces iPhones. This factory relies on both employees (labor) and machines…

A: The human effort that may be used to produce commodities and services is called labor. People who…

Q: Question 2 in the second stage of production function the TP and MP is O A. TP is increase and MP is…

A: MP is the derivative of TP. Therere are three stages of production which shows the increasing…

Q: 2 8 PRICE (Dollars per overalls) X 54 22 10 w O O O 6 O MC AVC 6 2 4 8 10 12 14 10 18 QUANTITY…

A: A competitive market consists of a number of buyers and sellers where none of the buyers and sellers…

Concept explainers

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.

Question

If product markets become less competitive and the markup rises, we would
expect:
a decrease in the interest rate in the medium run
no change in output in the medium run
a decrease in the real wage in the medium run
O no change in the real wage in the medium run
O an increase in the aggregate price level as output increases

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

QUESTION 24 Suppose a firm is producing a level of output such that MR > MC. What should the firm do to maximize its profits? O The firm should increase price O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits. O The firm should increase output O The firm should hire less labor QUESTION 25 Click Save and Submit to save and submit. Click Save All Answers to save all answers. DELL
7 The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units of capital and 520 units of labor. Paunch Burger’s marginal rate of technical substitution (MRTS) of labor for capital is 3.5. If Paunch Burger’s regional manager wants to produce the same amount of output but increase the company’s use of capital by 175 units, how many units of capital will Paunch Burger now need to use?
Which of the following most directly decreases profits if nothing else changes? O Changing your wardrobe O Giving your workforce a raise O Reducing costs O Lowering price
How do increases in technology affect the aggregate production funclion? O A. With better technology, the aggregate production function shifts down because fewer workers are neoded O B. Even with technology increases, the aggregate production function will remain constant unless the technology increases are matched by increases in the physical capital stock. O C. As technology increases, diminishing marginal product sets in such that each unit of technology produces less output O D. With increases in technology, the aggregate production function shitfts up, indicating more output is produced from the same amount of inputs.
20
6 In the production process, both the average product and marginal product of the variable input rise first, then fall, and then * rise to infinity True O False O
A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the country's production function? Select one: O a. remain unchanged Ob. shift outwards- c. movement upwards along the same curve O d. movement downward along the same curve O e. shift inwards Next p is page
3. Total and marginal product Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for its hourly production. MARGINAL PRODUCT (Sandwiches per worker) 20 18 16 14 12 10 4 2 0 0 1 O 2 3 LABOR (Workers) O MP 5 When labor increases from two to three workers, total product increases by ? per hour.
7
help
Typed plzz Asap
QUESTION 3 Two inputs, labour (L) and capital (K) are used to produce a given output. The Marginal Product of L is equal to K: the Marginal Product of K is equal to L The hourly wage is w = 1; the interest rate is r= 2. Which of the following mixes of inputs could be cost minimizing for some level of production? O a. (K-0, L=100) Ob.(K=100, L-200) OC (K-200, L=100) O d. (K-1, L=3) O e (K=0, L-3)