Assume a company is producing 600 units of output per day and minimizing total cost with the following isoquant graph. Both the price of labor (w) and the price of capital (r) are $100 per day. Now assume they want to increase production to 800. Use the graph and complete sentences (and the numbers from the situation provided) to explain whether marginal cost would be higher in the short run or long run or will the MC be the same in both the SR and LR. That is, what is the MC is the short run and the MC in the long run? Explain. K 21 16 13.5 12 Q=800 Q=600 10 13 17 20

Q: The table below shows the demand schedule for museum admissions in a small city.   Price (per…

A: We have given the demand schedule for a good where price and demand is inversely related with each…

Q: Discuss the fuel tax increase impact the public social welfare

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Billy is renting trucks that will be used to install solar panels. The table below presents the…

A: Marginal revenue product = (price* marginal product)

Q: Suppose that the depreciation rate increases. In the Solow growth model, determine the effects of…

A: Under the solow growth model, using the variables such as the capital accumulation, rise in…

Q: What is the simplified procedures used to prepare and evaluate the pro forma income statement and…

A: One method for calculating financial results is pro forma, Latin meaning "for form" or "as a matter…

Q: After Calculating the HHI in the market with the following market shares: Company A: 55%, Firm B:…

A: The Herfindahl-Hirschman Index (HHI) is a standard measure of market concentration that is used to…

Q: When the economy is weak, fear of losing jobs cause consumers to cut back on spending. O True False

A: Yes  , when the economy is weak, less consumers will tend to purchase the products of peoducers.and…

Q: Monopolistic competitive firms are productively inefficient because production occurs where Multiple…

A: Answer is given below

Q: 6   Assuming the economy is initially at LR equilibrium, suppose in response to international…

A: Introduction Assuming the economy is initially at LR equilibrium, suppose in response to…

Q: 26.When isoquants get progressively closer together there is Select one: a. increasing returns to…

A: Any consistent level of output is shown by an isoquant curve which breakdown to the meaning of equal…

Q: Aesd ts emoveag There can be at least one input for production which can be considered as fixed in…

A: Short run refers to the period of time in which certain factors of production are fixed while others…

Q: Definition of Economic Theory of Government Regulation

A: Economic theory: It refers to the plans and policies that help the economy to grow. It is the theory…

Q: Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A…

A: A discretionary expenditure is a cost that a firm or family may live without if it is absolutely…

Q: there are 4,000 people that commute into a city each day. There is a local road that takes 30…

A: The Nash equilibrium is a dynamic hypothesis inside game theory that expresses a player can…

Q: a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and AC = the…

A: The average cost of production is calculated by dividing the total cost (TC) by the total output…

Q: a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate…

A:

Q: Consider the foreign exchange market, where Ry and Rj respectively denote interest rates on US…

A: Interest rate parity condition states that  any differences in the real rate of returns among the…

Q: Read parts (i) to (iii) before answering. Answer all three parts on a single diagram. Assume that…

A: Philips curve shows the relationship between inflation and unemployment rate in an economy. There is…

Q: Two firms are planning to join the shoe industry. Firm 2 knows the size of firm 1 but firm 1 has…

A: Firm 2 knows the size of firm 1 but firm 1 has incomplete information on the size of firm 2.

Q: Steady-state output, depreciation & investment per worker Ak*) Sk k*A k*B k*c Steady-state capital…

A: Steady state is the stage where there is no change  in capital per worker.

Q: # Lumberjacks 1 2 3 4 # Trees (TP) 4 10 12 13 13 MP 4 1

A: Diminishing marginal product is the change in additional output due to change in additional input.…

Q: In Wonderland production per worker (y) depends on capital per worker (3) such the y=10√k. Every…

A: The question is related to the Solow model of economic growth.

Q: 3. What is development? Sustainable development? We often use real per capita GDP as a proxy for the…

A: Advancement characterize as the improvement in nation's financial and social condition. Advancement…

Q: Which of the following characteristics is true of paper currency? O It is the only type of money…

A: In an economy, money is exchanged in different forms such as paper money, coins, pr other monetary…

Q: Name and describe the advantages and disadvantages of the different types of joint venturing when…

A: A joint venture can be described as an association of companies that come together to form a single…

Q: Based on this information, which of the following statements is correct? O Japan experienced a…

A: In this question:- In case of japan we find that the country's economy is facing negative inflation…

Q: Data literacy and career: what's the deal?

A: The capacity to understand, work with, analyze, and communicate with data is known as data…

Q: Economics Question

A: A fixed exchange rate refers to when the central authority of a country ties the value of its own…

Q: Suppose the Market Demand function is Q = 60,700 – 520P. The two firms in the market compete under…

A:

Q: Under free trade, advantage is the reason for positive gains to both economies, whereas under free…

A: Absolute advantage portrays what is happening in which an individual, business or nation can create…

Q: Consider the quantity competition between two firms, A and B, in 380 — 2QA - Qв, where P denotes the…

A: We have two firms with different marginal cost of production.

Q: Briefly discuss five reasons why a rise in real Gross Domestic Product within a country over time…

A: The measure that depicts the final goods and services that are being produced in an economy during a…

Q: Problem no. 1 An air-conditioning repair department manager has compiled data on the primary reason…

A: The term "market" refers to the exchange of products and services between a buyer and a seller on a…

Q: 2. The following tables give information about demand and total cost for two firms. In the short…

A: There is no express demand from the corporation. schedule. The price is presented in the 'Above a…

Q: 15. D(x) = ==X# 10, S(x) = 7X+2 (a) Find the equilibrium point. (Type an ordered pair, using…

A: Equilibrium in the market occurs where quantity demanded equals quantity supplied, that is at the…

Q: (i) Explain the relationship between the current account balance given by exports (X) minus imports…

A: Since you have posted multiple questions, we will answer the first question for you. If you want any…

Q: Compare the three alternative global pricingstrategies.

A: Global pricing strategies involve only two things, one is the cost of the product and the other one…

Q: Because of issues of rivalry and excludability, greenhouse gas emissions can BEST be called a…

A: When talking about the rivalry an excludability of any good, it can be said that these two features…

Q: demand curve faced by the firm is: P = 230 - 4Q where Q = Q1 + Q2 total cost equations for the two…

A: MC(marginal cost) is the cost incurred by the firm when an additional unit of good is produced.…

Q: Which of the following events would contribute to economies of scale? O Large supermarkets being…

A: Economies of scale refers to decrease in average cost as production increases.

Q: 5. of the total market share. If firm 1 and firm 2 were to merge, calculate the pre- A market has 3…

A: Given, Market share of Firm 1 = 37% Firm 2 = 17% Firm 3 = 46% The Herfindahl-Hirschman Index (HHI)…

Q: Consider the production function Q = 4L0.4K0.5 where Q is the total output, L is labour and K is…

A: "Elasticity of production of labour L is computed by dividing marginal product of L by average…

Q: Disruption to the supply of natural gas to Atlantis has caused a surge in energy prices. While…

A: Inflation  Inflation refers to a change in the demand and supply or shift of demand and supply from…

Q: Pays for each computer a cost f v=3, The fivm hes a produotiou function Y= k+2L and needs t prodwee…

A: Option a. If we put the values of option a then we get Y = 6 but we require Y = 12 . This is…

Q: The United States has a comparative advantage in -skilled labor. This explains why the U.S. is a net…

A:

Q: A multiple product company had annual revenue of 18 million euro in the given year. The amount of…

A: Annual Revenue = 18M Fixed Cost = 5M Variable Cost = 7M Amortization = 1M Owner's equity = 12M…

Q: Who benefits from matching the product's demands with its own capabilities?

A: At the marketplace, households make demand for goods and services, while firms supply those goods…

Q: The following table shows the nominal interest rate and the annual inflation rate (the GDP deflator)…

A: Given: Year Interest rate Inflation Rate 1996 - 2000 1.50% -1.90% 2001 - 2005 1.40% -0.90%…

Q: Calculate total profits in this hypothetical economy: Units of capital: 100 Units of labor: 200 W:…

A: Ans. Total profit is the difference between total revenue and total cost.       Total profit = Total…

Q: if marginal product is given by 50Q - 5Q2 find the value of Q where marginal product is at its…

A: Answer to the question is as follows: