Allocative efficiency is achieved Group of answer choices a. at the point where the supply and demand curves intersect. b. at a quantity lower than the equilibrium market quantity. c. at a quantity higher than the equilibrium quantity. d. any of the above can be true.
Q: Explain the difference between direct costs, indirect costs, fixed costs, and variable costs,…
A: Economic cost looks at the gains and losses of one course of action versus another. It does this…
Q: An employer agrees to a three-year wage deal to pay $20 an hour plus increases equal to the change…
A: C. The workers gain and the employer loses. The workers gain because they are getting paid more…
Q: (c) If the price of capital is $750 a week and the price of labor is $300 a week, which input does…
A: In economics, a production function gives the technological relation between quantities of physical…
Q: (i) (ii) Given a consumer price index of 154.5 in the year 2019 and 165.3 in 2020, calculate the…
A: The general increase in the price level is known as inflation. It is function of central bank to…
Q: The following table shows the production of cows’ milk and potatoes per unit of input in the…
A: Opportunity cost is the value of the next best alternative that has been given up in order to engage…
Q: At mid-year 2018, the annual growth rate in Pakistan was 1.4%. What is your estimate of the per…
A: Gross Domestic Product (GDP) measures the value of final goods and services produced in a nation in…
Q: A company periodically produces a part that is a basic component of an assembled product. Each time…
A: Part-period balancing depends on the idea of Economic Part Periods (EPP). EPP is determined by…
Q: Marginal willingness to pay at a given quantity can be found by: A: Is given by the equilibrium…
A: Marginal Willingness to pay is an indicative amount that a customer is willing to pay for one more…
Q: A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18.000, and 5…
A: Straight line devaluation is the most regularly utilized and direct deterioration strategy for…
Q: Explanation it correctly and details At a price of $26.75, producers will provide 7 items, while…
A: As we know that demand and supply are the forces that determines the price and quantity level in the…
Q: Under which of the following conditions will the unemployment rate rise? Select one: a.When the…
A: The proportion of unemployed people in the labour force is known as the unemployment rate. As a…
Q: 9. Shifts in supply or demand II The following graph shows the market for hot dogs in San Diego,…
A: In the free market, the equiibrium price and quantity is determined by the forces of the demand and…
Q: Show on a supply and demand graph the impact of the following events on the equilibrium price and…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: What makes markets efficient?
A: When the market's outcome is desirable, the market is considered to be efficient. But if the…
Q: Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Money…
A: The use of taxation and expenditure by the state to impact the economy is known as fiscal policy.…
Q: Why do businesses and governments often use utilitarian thinking to determine the proper course of…
A: Utilitarian approach The utilitarian philosophy has significant ramifications for how we ought to…
Q: Discuss the main difference between games of perfect information and games of imperfect information.
A: Game theory refers to a branch of applied mathematics that gives tools for analyzing situations in…
Q: Market demand for the nuclear substance pluranium is given below, along with the TR for the given…
A: The marginal cost of supplying megatonne of pluranium is $20 Fixed cost FC=$60 We know TC=VC+FC For…
Q: If nominal GDP for 2017 is $62 trillion and real GDP for 2017 is $46 trillion, then the GDP deflator…
A: The gross domestic product (GDP) is a financial indication of the market value of all finished…
Q: Explain Key principles of economics
A: Economics refers to the study which explains the how resources are scarce and how the available…
Q: -) A depositor puts $40,000 in a savings account that pays 10% interest, compoun semiannually. Equal…
A: Future worth (FW) is the value of a current resources at a piece of future information based on an…
Q: What distinguishes the supply of a product, like milk, from the quantity supplied? Explain in words…
A: Supply is the volume of products and services that a manufacturer is prepared to offer to customers…
Q: The explicit cost of production equals: a. economic cost minus opportunity cost. b. opportunity…
A: Explicit cost is the actual monetary expenditure incurred during the production process Implicit…
Q: game. Find all the pure strategy and mixed strategy Nash equilibria in the following Player 2 M R…
A: Pure Strategy Nash Equilibrium gives us the best response/action given what the other player is…
Q: Increases in risky conduct as a result of efforts to make that behavior safer are referred to as…
A: Moral hazard refers to the potential that a party did not enter into a contract in good faith or…
Q: Kris' Kabobs: Kris decides to drop the price of his famous Kabobs from $3 to $2. Last week at $3 he…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…
Q: Do these three measures avoid the sources of bias in the CPI? These measures _______. A. avoid…
A: The change in the prices of a basket of goods and services that are frequently purchased by…
Q: Consider a monopolistic business. What sort of demand curve does a monopolist face in contrast to a…
A: A monopolist company is the only one in the market selling a good that has no direct competitors. As…
Q: The people on Windy Island buy only juice and cloth. The CPI basket contains the quantities bought…
A: A consumer price index is a cost list, the cost of a weighted typical market bushel of purchaser…
Q: How do you currently describe the business climate globally? What are the implications for the…
A: The business climate globally is currently unstable. "This is due to the current trade war between…
Q: What are three alternative measures of the price level? Three alternative measures of the price…
A: The definition of price level is a measurement of the present costs of goods and services produced…
Q: Assume that a worker can either drive a delivery truck or paint houses in a given day. It takes 5…
A: Opportunity cost refers to the benefits of next best alternate which is sacrificed. The resources…
Q: What is cost a measure of? Select one: O a. the seller's willingness to buy O b. the seller's…
A: Cost refers to the expenditure incurred by producer in the process of production. It includes all…
Q: 5. What are economic benefits of using biodegradable plates? Explain.?.
A: We know that Biodegradable plates are substitutes for plastic plates. The reason biodegradable…
Q: The Impact of International Monetary Fund (IMF) Structural Adjustment Policies (SAP) on the…
A: part 1. "The structural adjustment policies of the International Monetary Fund" (IMF) have had a…
Q: construction. The contractor found 2 possible sources for the gravel with the following data:…
A: In economic matters, total cost (TC) is the base dollar cost of creating some amount of result. This…
Q: Suppose that the Foreign country experiences positive news following the discovery of a valuable…
A: Demand can be defined as the quantity of a good that the customers are able and willing to buy at…
Q: Match the correct policy with its description. Column A 1. 2. 3. 4. During a contraction or…
A: Here, given information is about different economic policies that are implemented by the government…
Q: b(Y)=400Y-6Y2 c(Y)=5y2
A: Only the functions have changed so we will follow the same procedure as before and get the answer.…
Q: 10. Which of the following statements is (are) correct? (x) The factor-endowment theory asserts that…
A: The factor endowment theory is based on certain assumptions such as the transportation cost is zero…
Q: how would scenarios A- Recession & B-Economic Boom affect the opportunity cost of going to college…
A: The opportunity cost of going to college vs. going to work immediately after high school would be…
Q: Ismaya and Aditya have created a business together. The business was Ismaya’s idea and he operates…
A: A silent partner invests money in a company in exchange for a share of the profits made by the…
Q: Below is the production possibilities table for consumer goods (washing machine) and capital goods…
A: Opportunity cost implies to what you have to give up to purchase what you want in terms of other…
Q: 5. How did 3Com use business process management software to revamp its business?
A: Business operations are actions taken to further the company's objective. A business process is a…
Q: Fill in the blanks. Price $5 $4 $3 $2 $1 Quantities Demanded by Jill 0 1 2 3 4 Refer to the above…
A: Consumer surplus is the difference between the consumer's maximum willingness to pay and actual pay.…
Q: In 2012, the reference base year, nominal GDP was $16.2 trillion. What were the GDP price index and…
A: Gross Domestic Product The gross domestic product GDP is the monetary or market value of all…
Q: Consider the Keynesian consumption function Yt=B₁ + B₂x2+ + Et ( where y, is per capita consumption,…
A: Given Keynsian consumption function yt=β1+β2x2t+εt ...... (1) At…
Q: A piece of construction equipment will cost $6,000 new and will have an expected life of 8 years,…
A: Equipment Cost = 6,000 Other Cost 1st Year and 2nd Year each = 1500 3nd Year = 1700 4th Year = 1900…
Q: Do firms really calculate marginal cost and marginal revenue to find the profit-maximizing output?…
A: Total revenue is the total receips collected from the sale of goods and services in the market.…
Q: If we wanted to make the statement that a particular point on a production possibility ter was DULIT…
A: A point is said to be productive and efficient if it lies on the production possibility frontier.…
Step by step
Solved in 2 steps
- When a market is in equilibrium, the buyers arethose with the _________ willingness to pay and thesellers are those with the _________ costs.a. highest; highestb. highest; lowestc. lowest; highestd. lowest; lowestGive typing answer with explanation and conclusion Explain carefully why, in a competitive market, a quantity less than the equilibrium quantity is inefficient.Raman noodles are an inferior good. If all consumer's incomes decrease, then the ____ curve shifts causing equilibrium price to _____ and equilibrium quantity to _____. Word bank: Demand, increase, decrease, increase, decrease, supply.
- This is a difficult question. Take your time to match the term to its definition or description. Complement Inferior Good Normal Good Substitute A. E1<0 B. EXY<0 C. E1>0 D. EXY>01. Place Price point E at price and quantity producers will make 2. identify all variables equal at point EWhat is the market price if there is a surplus of 200 in the market? Show the necessary solutions.
- Explain the Market Equilibrium.When the market is in equilibrium, the buyers are those with the ________ willingness to pay and the sellers are those with the _______ costs Question 9 options: lowest, lowest highest, highest lowest, highest highest, lowestChoose all statements that are true. A. The supply curve represents the behavior of sellers and the supply curve is a function that shows the quantity supplied at different prices. B. An increase in supply means that sellers are willing to sell more quantity at all prices. C. An increase in supply is seen as a SHIFT of the supply to the RIGHT. D. Producer surplus is the area above the supply curve and below the price. E. A supply curve can be read horizontally or vertically. The horizontal reading tells us how much suppliers are willing and able to sell at each price. The vertical reading tells us the minimum price at which suppliers will sell a given quantity. F. An increase in supply means that sellers are willing to accept a lower price for each quantity
- H10. A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent examinations of their emerald, which are available to the customer for inspection. b) What would happen to the equilibrium price? c) Is the new equilibrium more efficient or less efficient than it was before the new rule? Explain.Why the price is inverse relation to the Demand, Explain the concept with the Example. Plagarism free Answer required.A market is described by the following supply and demand curves: Supply: P=0.25Q Demand: P=300-0.75Q (a) Solve for the equilibrium price and quantity and calculate the total economic surplus with a diagram.
