Suppose that the economy is made up of a single firm, which pays $500 in interest payments, pays $500 in its labour costs, and pays $1,000 in rental costs for its building. The rest of its revenues are paid out to the owners of this firm.
Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…
A: When talking about cost functions of a firm, it can be said that these coste function are…
Q: 1- Provide one reason why there is so much advertising in the monopolistic competitive industry?
A: Monopolistic competition happens when an industry has many firms offering items that are…
Q: Draw the S & D Graph Assignment Instructions Assignment Directions: Download and complete the…
A: demand curve is downward sloping curve due to law of demand which says there is inverse relationship…
Q: Find Indirect utility function of the following function U= max (X, Y) subject to the budget…
A: Maximize U = Max(X,Y) Subject to Px*X + Py*Y ≤M This is the problem with cornor solution, here at…
Q: 1) Discuss some of the complex problems brought by the modern food industry upon agricultural…
A: "Seed: The Untold story" is the beautiful documentary which gives us a beautiful massage about a…
Q: 2. The inflation rate of Alternatown is currently 3.75%, and the real interest rate is currently…
A: Here, some information about inflation rate, real interest rate and nominal interest rate is given…
Q: Avg. ann. Growth rate 6.3 Cell B Cell C 1.9 years for wealth to double Cell A 29.17 23.33 Cell D 57.…
A: According to Rule of 70: The number of years to double = (70 / Average annual growth rate)
Q: Refer to the graph below. What is the impact of higher population and income growth on equilibrium…
A: Demand for the good is the quantity of the goods demanded by various consumers at different prices…
Q: Spaniards can produce 10 gallons of wine or 8 gallons of olive oil per worker hour. Americans can…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Suppose a firm is producing an output level for which price exceeds average total cost. From this…
A: Average total cost is alluded to as the whole of all creation costs separated by the total amount of…
Q: Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing…
A:
Q: Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company…
A: The time it will take for a business to recover an investment is known as the payback period. The…
Q: How much should Heather repay her grandmother?
A: a) S.I formula to calculate amount is A=P x (1+rt) = 5000 x (1.14) =$5700
Q: As the Federal Reserve sharply raises rates in the face if substantial inflationary pressures,…
A: Inflationary pressure is the continuous increase in the general price level in an economy. During…
Q: A monopolist options: always earns profits in the long run. may earn profits in the long…
A: A monopolist is the market where there are many buyers but only one seller. In this market product…
Q: discuss the relationship that exists amongst the three short- run total cost curves. motivate your…
A: Cost curves are a helpful method to examine the firm way of behaving. here, (1) Average variable…
Q: Explain why the Cedi continues to depreciate against most major international currencies and offer…
A: Currency depreciation, which often occurs under a floating exchange rate system when no official…
Q: Tariffs (taxes on traded products between countries) generally have a greater negative impact on…
A: International trade is the transnational exchange of goods and services between nations. Trade is…
Q: The demand for Widgets (QX) is a function of the price of widgets (PX), the price of wooz (PY), and…
A:
Q: [Related to Solved Problem 3.18] Some companies offer their employees defined benefit pension plans.…
A: Discount Rate is the rate at which future value or a series of future cash flows are discounted to…
Q: Given the cash flows shown, determine P. 80 P 100 120 140 160 0-1-2-3-4-5 i = 4%
A:
Q: Suppose that the money market can be depicted in the graph below. Interest rate (M³/P)⁰ (M³/P)1…
A: Disposable pay is the cash you have left from your pay after you pay bureaucratic, state, and…
Q: Figure: The vertical distance between points A and C represents a tax in the ma 1000 Price 900 800-…
A: The tax is imposed by the government, and it is distributed between the buyers and sellers based on…
Q: You can invest in an account that pays simple interest or an account that pays compound interest. In…
A: We need to solve the simple interest amount as well as compounding interest amount with given…
Q: Q2. The Prisoners' Dilemma: Jill Confess Remain Silent Confess Bob: 8 years Jill: 8 years Bob: Free…
A: The Nash equilibrium is a decision-making theorem within game theory that states a player can…
Q: if Age dependency ratio (% of working-age population) increas what will happen to fixed capital…
A: In basic or simple terms we can say that the Fixed capital consumption is known to be as the…
Q: Please judge whether the following function has the characteristics of CRS, IRS or DRS. 1. F(K,…
A: Production Function The link between the number of productive inputs (such as labor and capital)…
Q: True or False: If the dollar depreciates relative to the Japanese yen, the dollar price of a…
A: Depreciation determines the actual declines over the fair value of an asset over a certain or a…
Q: 1. In case of perfectly inelastic supply- a. The resource substitution for the good is nearly…
A: Perfectly inelastic supply is such a condition where there will be no change in the quantity/output…
Q: Discuss the effect of elasticity of demand on consumer and producer surplus and give examples.
A: Generally, elasticity measures how economic variables are responsive to a change in another…
Q: Suppose a firm has production function F(L, K) = L6K.6. Following the steps in the slides, derive…
A:
Q: 6. Gains from Trade Indicate whether each of the following statements is true or false. Statement 1.…
A: When talking about international market, the primary motive of people to enter this market is to…
Q: Calculate the Money Multiplier, Excess Reserves, Required Reserves and Total Potential Deposit…
A: Given that, rrr = .12 Total Deposits = $6300 Total Reserves = $5500
Q: 2. Classify each of the following items as a public good, a private good, a natural monopoly good,…
A: Meaning Public products are the ones which are given by the nature or the public authority with the…
Q: Round to one decimal place and do not enter the % sign. If your answer is 6.15%, enter 6.2. If…
A: The unemployment rate is a process of computing the % of the labor force that is jobless. As the…
Q: Trends in globalization continue to have an impact on businesses in every region of the world.…
A: High-quality content and brand consistency are guaranteed via a standardization strategy across all…
Q: A man wishes his son to receive $ 200000 after 10 years from now. What amount should he invest if it…
A: Given the information: Future value of investment = $200000 Time period = 10 years Interest rate =…
Q: 6. The Role of Government: Tax and plastic bags A. In the diagram, identify the lines that express…
A: c) The impact of tax depends on the elasticities of demand and supply curves i.e. the responsiveness…
Q: Suppose that the Consumer Price Index (CPI) at year end 2019 was 290 and 12 months later at year end…
A: Inflation happens when costs ascend across the economy, diminishing the buying influence of your…
Q: Economics (Table: Positive Externalities from State Parks) Use: Table: Positive Externalities from…
A: The presence of externality leads to spillover costs or benefits to third party who is not directly…
Q: 2. Match the descriptions below to the appropriate concept: A. Economies of Scale B. Efficient Scale…
A:
Q: .If MR > MC, the monopolist should: MR Marginal Revenue = MC Marginal Cost =
A: Monopolist refers to the market where only single firm exists in the market. Single firm is price…
Q: Explain the influence of each of the following events on the quantity of real GDP supplied and…
A: Real GDP (GDP) is an estimation of financial result that records for the impacts of expansion or…
Q: Use the table below to calculate core and headline inflation in each time frame relative to the base…
A: Core and headline inflation:- Headline inflation is the unprocessed inflation rate as measured by…
Q: 1. Which of the following statements is consistent with markets where it is difficult for buyers to…
A: Item quality alludes to how well an item fulfills client needs, fills its need and satisfies…
Q: Suppose that the economy is made up of a single firm, which buys $400 of intermediate goods, pays…
A: Gross domestic product (GDP) measures the market value of final goods and services produced by a…
Q: Please judge whether the following function has the characteristics of CRS, IRS or DRS. F(K,L)= max…
A: We multiply K and L by a constant A >1 If after doing this we find that F(AK,AL) is > A(F(K,L)…
Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…
A: The values provided in the question are as follows: (a) Let princpal is $5000, time is 2 years, rate…
Q: Suppose that quantity demand falls by 25as a result of a 14% increase in price. The price elasticity…
A: Change in quantity demanded = - 2% Change in price = 14%
Q: The modified B/C ratio for a city-owned hospital heliport project is 1.7. The initial cost is $0.6…
A: (Q) The modified B/C ratio for a city-owned hospital heliport project is 1.7. The initial cost is…
Step by step
Solved in 2 steps
- What is a production technology?A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the money, it would have of pay 8 interest on the loan, but it currently has the cash, so it will But need to borrow. Should the firm make line investment? Show your work.Assume an economy where there are two producers: a wheat producer and a bread producer. In agiven year, the wheat producer grows 3 million tonnes of wheat, of which 2.5 million tonnes aresold to the bread producer at $30 per bushel, and 0.5 million tonnes are stored by the wheatproducer to use as seed for next years crop. The bread producer produces and sells 100 millionloaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this yearusing the product and expenditure approaches.
- Quacion Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges 365 for a repair, and last year the shop performed 4,000 repairs. Jarod's production costs for the year included rent, wages, and equipment, Jarod spent $60,000 on rent and $120.000 on wages for his employees. Jarod keops whatever preft the shop eams but does not pay himself an olle wage Jarod used $25,000 of his savings to buy a machine for the business. His savings a saming an annual interest rate of 6 percent. a. What is Jarod's annual accounting profi? ( b. What is Jarod's annual economic profit? c. Based on what you have found in parts a and b., should Jarod continue running his bike-repair shop or quilt to return to his former job?1. The farmer produces 115 pounds of oranges at a total cost of $1.38 per pound. He sells all of the oranges to Firm F for $1.71 per pound. Firm F produces 60 gallons of orange juice at a total cost of $3.81 per gallon (including the amount paid to the farmer for the oranges). Firm F sells 55 gallons of juice to consumers for $5.71 per gallon There are no other firms in this simple economy. What is the value added by Firm F? Enter a whole number with no dollar sign. 2. A farmer grows wheat and sells it to the miller for $1.25. The miller turns the wheat into flour and sells it to the baker for $2.00. The baker turns the flour into bread and sells it to consumers for $3.80. What is the value added by the baker? Group of answer choices $3.80 $7.05 $1.80 $0.55. Joe quits his computer programming job, where he was earning a salary of $60,000per year, to start his own computer software business in a building that he owns andwas previously renting out for $24,000 per year. In his first year of business he has thefollowing expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000.Find the accounting cost and the economic cost associated with Joe’s computer softwarebusiness.
- Output per worker (S, thousands) Production lunction (after 225 technological progre Production function 15 20 30 Capital equipment per worker (S, thousands) The figure shows an economy's production function before and after a technological progress. Based on this information, which of the following statements is correct? O The average product of capital at Ais 250,000/70,000 -3.57 O The marginal product of capital atA is (85.000 - 70.000)/ (300,000 - 250,000) = 0.30 O The particular shape of the production function indicates diminishing marginal product of capital As a result of a technological progress, the marginal product of capital rises but the average product of capital remains constant for a given level of capital per worker2-lf you have the following production function Q=f( L,K), answer the following : 1. is this function tong or short run? 2. Draw TP! , MPL, APL. 3. Show the stages of the production. 4. Expiain the reiationship between iviPi & APL. 5. When MPL=0, what does that mean ?MNLogs harvested logs (with no inputs from other companies) from it's property in Northern Minnesota. It sold these logs to MNLumber for $1500 and MNLumber cut and planed the logs into lumber. MNLumber then sold the lumber for $4,000 to MNFurniture. MNFurniture used the lumber to produce 100 tables that is sold to customers for $70 each.
- In the production process, both the average product and marginal product of the variable input rise first, then fall, and then rise to infinity OFalse O True 27 WWW is a small automobile manufacturer. The table below shows WW’s long-run average total cost: Quantity of cars LRATC of car 1 $60,000 2 40,000 3 30,000 4 24,000 5 24,000 6 24,000 7 28,000 8 36,000 a. For which levels of output does WW experience economies of scale? ___________ b. For which levels of output does WW experience diseconomies of scale? ___________ c. For which levels of output does WW experience constant returns to scale? ___________1.Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe’s computer software business.