When is the law of diminishing marginal returns relevant? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an a when a firm can change all of its inputs b when a firm can only change one of its inputs U when a firm is advertising d when a firm is not using all of its inputs
Q: find the utility-maximizing consumption function subject to the budget constraint
A: For the utility maximising consumption bundle the basic principle is that we equate the rate at…
Q: Suppose for a single firm that P = 15 TC = 3Q + 2Q2 (a) What is the profit-maximizing quantity?…
A: Profit maximization in economics happens when the difference between total revenue (TR) and total…
Q: Consider perfect competition and monopolistic competition. In which market structure(s) will we see…
A: Perfectly competitive market is characterized by the presence of homogeneous product. while the…
Q: The government wishes for Alonso to buy fewer sport cars because they create too much pollution. The…
A: Utility function shows the level of satisfaction derived from the consumption of goods. Budget…
Q: Consider a general two-stage game of complete but imperfect information. How do we denote the…
A: A multistage game is a game type that is played simultaneously one after the other. Imperfect…
Q: Draw a diagram for a perfectly competitive industry with firms earning normal profits in the long…
A: Perfectly competitive market is the one where there is homogeneous product prevailing in the market…
Q: A farmer can either invest in irrigation for their farm or not. There's a 30% chance that they will…
A: The game in an extensive form refers to the specification of a game in the study of game that allows…
Q: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: The benefits received principle of taxation asserts that Select one: a. Society at large should pay…
A: Tax refers is a compulsory financial charge levied by the government. It is used to fund government…
Q: What will happen if a monopoly raises its price? a Quantity demanded will increase. b Quantity…
A: In a monopoly market, there is only one single firm that supplies output for a large number of…
Q: Adam buys luxury wristwatches in Greece for $70.00 and sells them in Germany for $120.00. This act…
A: Marketing is the use of ideas which are used for selling a product or making people aware of the…
Q: Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly…
A: Disclaimer- “Since you have asked multiple question, we will solve the three question for you as per…
Q: It is assumed that everything else stays constant. The economy has Consumption $90, Investment…
A: Aggregate Demand has four components, namely, Private consumption expenditure( C) Private…
Q: Which of the following is least likely to be a cause of the fluctuation of exchange rates?…
A: Exchange rate represents the price of a currency in terms of another currency. The value of exchange…
Q: If a country has a floating exchange rate will a rise in exchange rate be bad or good for exporters?
A: Exchange rate refers to the rate at which the currency of a country is exchanged for the currency of…
Q: In this table, the average cost of producing 300 units of output is: a b IPCSB.13 с d Selected…
A: In economics, average cost or unit cost is equivalent to total cost (TC) divided by the quantity of…
Q: The following graph shows a monopoly. Which coordinate area represents the deadweight- loss…
A: A monopoly is a market structure where there is only one firm in the market for a good or service.…
Q: Calculate the sensitivity with respect to PW to +50% alters in (a) Initial investment (ii) Net…
A: Given information Initial investment=$95000 Annual benefit=$20000 Salvage value=$10000 MARR=12%…
Q: the beginning of the year, the economy has public debt (or national debt) of $470 million. This…
A: Public saving = tax revenue - government outlay Since, government outlays are the expenditure made…
Q: What is meant by "internalizing" an externality? How can a negative externality be internalized?
A: Internalising an externality means when there is a loss in welfare accompanied with externality then…
Q: How does health disparities affect the labor market and money market
A: Health disparities are the prevalence of inequities in the burden of disease, harm, abuse, as well…
Q: .In 2019, competition authorities threw out a merger of Asda and Sainsbury’s. What type of growth…
A: 8) Mergers could be of various types i.e. vertical or horizontal. It could be across industries or…
Q: Which of the following policies will shift the IS curve to the right a) An increase in the…
A: The IS curve depicts all income (Y) and real interest rate (r) pairings that result in an…
Q: It is hard to see how the euro can work for EU in the way the dollar has worked for The United…
A: The European union nations follow Euro as there single currency and have monetary policy…
Q: Suppose AD1 and SRAS1 indicate initial conditions in the goods and services market in Figure 14-1.…
A: Monetary Policy: Monetary policy refers to the policy instruments with the central bank of a country…
Q: The figure above shows a housing market with a rent (price) ceiling equal to $1500. With the rent…
A: Producer surplus is the discrepancy between a buyer's willingness to pay and the commodity's market…
Q: (1) (2) (3) (4) y = 1+C (expenditure), y = S+C (use of income). So in equilibrium I must equal S:…
A: The value of final services and goods produced in an economy at a particular time period is known…
Q: Consider the following sets of investment projects. All projects have a 3-year investment life.…
A: Present worth formula: P=CFn1+in Where CFn denotes cash flow in year n and i is the rate of…
Q: Suppose households supply 500 billion hours of labor per year and have a tax elasticity of supply of…
A: The elasticity of labor supply is the percent change in how much labor is supplied because of a…
Q: What is the short-run shutdown price, the price below which the firm chooses to shut down…
A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…
Q: QUESTION 36 The severance pay for each of the first five years of service shall be calculated as:…
A: Part 36 Option b is correct. Generally, the gratuity or the severance pay is not liable in the first…
Q: The above graph represents a market for bananas. What does area E represent? surplus transferred…
A: The price a person is willing to pay for a good and the market price for that good are separated by…
Q: The elasticity of demand for energy- ‘Electricity, and Gas’- is relatively price inelastic in the…
A: Elasticity of demand refers to the responsiveness of consumers to the change in the market price of…
Q: Assume a firm has the following production function: q(L, K) = L¹1/2. K¹/2 Additionally, assume…
A: We have to satisfy first order condition for profit maximization
Q: What the bank is holding - or it's reserve deposit A. Primary Reserve Occurs if the bank holds more…
A: The central bank of a nation sets the required reserve ratio and each commercial bank has to keep…
Q: 3.2 Simple Utility Maximization Your preferences are represented by the utility function U =…
A: Utility maximization means that the consumer likes to attain maximum satisfaction from their…
Q: You used the wrong elacticity of labor supply. It is .16 not 0.1
A: The labour supply elasticity is the percentage change in how much labour is supplied as a result of…
Q: In the given question What will be the Net indirect taxes if the subsidies are 610 and Indirect…
A: An Subsidy is any monetary guide given by an administration to a maker or vender of a decent or…
Q: In the second paragraph of the June 30, 2004, FOMC statement, the committee affirmed that it…
A: The U.S. central bank implements its monetary policy through the Federal Open Market Committee…
Q: the price at which a 91-day Treasury Bill is sold falls, which of the following statements are true?…
A: Treasury bills are the bills that are issued by the government of a county, which can be purchased…
Q: Which of the following is NOT a potential harm of the Monopoly market structure? [Hint: Which is a…
A: Monopoly is a market arrangement when there is only one seller who has complete market control. The…
Q: 10. Which of the following statements is true? a. A decline in the general price level will result…
A: 10. In economics, LM curve refers to the curve that shows the condition of money market. LM curve is…
Q: An investment has the following structure: You are required to spend $2,327.41 today, and 20 years…
A: Internal rate of return IRR is the discount rate that makes the net present value of a cash flow…
Q: Consider the following dynamic game. There are two players (P1, P2). Player 2 tries to rob Player 1.…
A: In the given scenario, there are two players P-1 and P-2 where first P-1 decides whether to give the…
Q: Suppose there is a remote stretch of highway along which two restaurants, Last Chance Café and…
A: Nash Equilibrium The Nash equilibrium is a steady state in game theory where no player can earn from…
Q: Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs…
A: In the short run, a firm should shut down production if revenue is lower than variable costs. It…
Q: Assume that all participants in the following have an interest rate or discount rate of 10%. A firm…
A: The present value of the future cash flows that will result from investing equity is added up in…
Q: Prices are still px 4 and Py = 3, and there is no sale tax on T-Rex toys. Income is equal to the…
A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…
Q: Consider a Solow economy with a production function F (K, L) = Kª L¹-ª, where a = = 0.2. The labor…
A: Solow model is a growth model in which the major drivers of growth are savings and investment. It…
Q: Consider the above table. What is the marginal product of the 2nd worker? O 18 O 20 O 40 O 22
A: The total product of labour is the sum of the prices of all the commodities and services generated…
Step by step
Solved in 2 steps
- Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 QuantityWhen is the law of diminishing marginal returns relevant? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a when a firm can change all of its inputs b when a firm can only change one of its inputs c when a firm is advertising d when a firm is not using all of its inputsQUESTION 17 Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity
- explain what is happening in this graphsSuppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per watch) 100 90 80 70 60 50 40 30 20 10 0 0 MC ATC AVC + + 10 20 30 40 50 60 70 80 QUANTITY (Thousands of watches per day) 90 100 Profit or Loss ?100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)
- Using the graph attached, calculate the firm's profits at the profit maximizing output.Using the figure above, what is profit/loss for the firm?Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
- Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?What are transaction costs? How do transaction costs affect the boundaries of a firm?Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 60 40 ATC 30 20 MC AVC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $45 per sweater, this firm will choose to produce 45,000 sweaters per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $45 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be thousand per day in the short run. PRICE (Dollars per sweater)