Suppose AE = 20 - 500r +0.5Y, potential (desired) output is 30 and current r = 0.02, then

Q: In a global economy, economic issues that affect members of the global community impact us all.  In…

A: Numerous individuals believe that the global economy is constrained by legislatures of the biggest…

Q: c. How much total consumer surplus will each of them receive at a price of $32?

A: Last parts C and d are answered below:

Q: What will happen if you make the underground economy legal?

A: Underground economy is the economic activities which are beyond the reach of tax regulators and…

Q: Economics helps managers focus on key issues.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: How Many decisions in business and economics require quantitative estimates? why ?

A: Almost every business and economic decision requires quantitative research. Data is very important…

Q: How would you measure the cost of earning a college degree?

A: Costs: In economics, the term cost refers to the amount spend to produce or manufacture something.…

Q: Do you see the rise of consumer power through evolving changes in technology? If so, how?

A: Technology is all that make things quicker, easier or cheaper. The rise in the technology leads to a…

Q: Find a company that bribed officials in a foreign country (not domestic) and the outcome. Talk about…

A: This topic is related to bribery. Bribery is a Black's law dictionary which offering, giving,…

Q: When, exactly, did World War I end?

A: World War I (WWI): It was a global war and started in Europe, it was considered the largest war in…

Q: Explain complex economic concepts to a reporter through an email pitch.

A: Hi [Reporter's Name],I hope this message finds you well. I would love to discuss two key economic…

Q: How would it be difficult to be a barber with a world without money

A: Barter System: The exchange of goods and services against the other goods and services is called a…

Q: Does government regulations is necessary in an economy. Describe it in a proper way.

A: In its widest meaning, regulation refers to the process through which the government imposes rules…

Q: What is abandonment?

A: Abandonment is an act of leaving something in arrears or ending something all in all.

Q: your family needs money and your parents asked you to propose a plan to get the highest possible…

A: Real estate property is one kind of permanent property that means any permanent structure of…

Q: Based on what you have learned so far, what is the biggest problem an economy faces and how can we…

A: In the short run, all resources are fixed but labor is a variable input and in the long run, all…

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?