b. How is a long-run average cost curve different from a short-run average cost curve?  How are they related

Q: Given the high acquisition premium with an all-cash transaction, antitrust concerns that could lead…

A: According to Gates et al. (2017), Bayer selected Monsanto as a partner for its diversification into…

Q: 8. What is the future worth of my P 100.000 after 5 years if I invest today at a rate of 12%…

A: Amounts of money or streams of cash flows that are anticipated in the future are measured by their…

Q: New Zealand dollar drops to lowest value against US dollar since 2020 (27/09/2022) The New Zealand…

A: CPI (Consumer Price Index) is a measure of inflation. It measures the change in prices of a basket…

Q: Suppose that a firm produces 450,000 units a year and sells them all for $20 each. The explicit…

A: Economic Profit = Total Revenue - Explicit cost - Implicit cost  Total Revenue = Price * Quantity

Q: 1.1. The following mathematical equations reflect the performance of the economy and inventory…

A: The Keynesian model of national income is the sum of the consumption function, investment function,…

Q: Which of the following is not part of the M2 money supply? currency in circulation.   credit card…

A: M1 consists of checkable deposits , cash  and currency in circulation and travellers checks.  M2…

Q: Assume the following: • Accounting Profit = $100 • Opportunity Cost = $80 What does economic profit…

A: The accounting profit is the difference between the total revenue and explicit cost. While the…

Q: QUESTION SEVEN Given the revenue function R(x) = √x²+5 a. Find the approximate marginal revenue…

A: Marginal revenue is defined as the the increase in revenue which is resulting from selling one…

Q: The average per capita income in 2017 for low-income developing nations was about Multiple Choice…

A: Low-income developing countries are often characterized by high rates of growth in population.…

Q: What will happen when variable costs rise in a perfectly competitive industry? Selected answer will…

A: Perfectly competitive market refers to the market where a firm is taker and price is determined by…

Q: The Delta firm intends to buy a device called machine X. Machine X would cost $25,000 and have…

A: A payout may also refer to the period of time it takes for a project or venture to recoup its…

Q: ● Calculate the CPI for 2012 (using 1 decimal place). Calculate the CPI for 2013 (using 1 decimal…

A: Formula: Current year price * current year quantity  2011: (using 2011 price and 2011 quantity)…

Q: Two bidders compete in a sealed-bid auction for a single indivisible object. For each bidder i, the…

A: Let the valuation of two bidders be  : b1 & b2  Also the their valuations for the bid be : v1…

Q: A small business owner can invest any amount of effort e ≥ 0 to produce output valued at 2e. The…

A: Value of product = 2e Cost of production = e2 Government expropriates a fraction = 2e (1-t ) - e2 In…

Q: Provide the notation for the subgame perfect outcome of the game described in question 2. Subgame…

A: Imperfect Information Game is defined as a game where the information regarding the game is hidden…

Q: MATCH THE terms in the Definition. . A sustained rise in the average price level over a period of…

A: Professionals can predict the path of the economy by keeping track of the cycle. All the sectors of…

Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Grandson will be receiving an amount of P 10,000 for 5 years starting after the 18th birthday. To…

Q: 3. If a monopoly takes over 100% of a market previously operating under perfect * competition, the…

A: Monopoly market refers to the market structure where only single firm exists in the market. The…

Q: How is MC calculated? 300 for the first MC is incorrect.

A: Marginal cost is the cost of producing an additional unit of output.  We have the formula of MC :-…

Q: QUESTION 4 Assume that there is an implicit cost. Which of the following must be true? a. Accounting…

A: Explicit Costs are the actual monetary payments that are made in order to conduct business. These…

Q: Early Late Hydration Power Drink 7.00 6.00 Satisfying Bundle Smoothie Price 5.00 10.00 Net Profit

A: Net profit Net profit refers to the sum of money earned by your company after deducting all…

Q: ohn Kenneth Galbraith saw modern capitalism as   A.dominated by large enterprises and…

A: Macroeconomics refers to the branch of economics that deals with the economy as a whole. For…

Q: The construction cost of the bypass is $20 million, and $500,000 would be required each year for…

A: Given data:  ====Construction cost of the bypass: $20 millionAnnual Maintenance each year:…

Q: Suppose is preferences are represented by the following utility function: u=x-y. Which of the…

A: A consumer maximizes his/her utility at that point where the slope of the indifference curve equals…

Q: Describe the characteristics of an oligopolistic market and explain whether it is socially efficient…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: Year 2001 2002 2003 2004 2005 Output Price Nom. GDP Real GDP 50 $23.00 $1,150.00 $1,350.00 52 $…

A: The better off or worse off can be seen from the real GDP.  If real GDP increases, the economy is…

Q: Parliament is interested in financing the cost of their proposed childcare programme by imposing a…

A: It is unfounded to worry that employees will shoulder all costs associated with a payroll tax…

Q: 1. Complete the Table: Capital (K) Labor (L) Total Product Average Product Marginal Product (TP) 10…

A: MPL (Marginal product of labor) : It is the change in the total product due to the addition of 1…

Q: 1.12 Study the following diagram and answer the question that follows. Expenditures (billions of…

A: Consumption function is consists of autonomous consumption and consumption dependent on Income.  C =…

Q: How to pay for Universal Basic Income/Basic Income Guarantee, through MMT approach?

A: A proposed government guarantee of a monthly payment to every citizen is known as universal basic…

Q: In the attached table, from 200 to 300 units of output, the average cost of production is in the…

A: Average cost is the cost of producing per unit.  Average cost can be calculated by dividing the…

Q: The transmission mechanism of monetary policy is how central banks attempt to control the price…

A: Monetary policy is the policy instrument of central bank under which it aims to control the money…

Q: 6. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all…

A: Automatic stabilizers are the economic factors that lead to automatically stabilizing the economy…

Q: 4. A machine was purchased under these terms: P 30,000 down and P 5,000 each month for 5 years. If…

A: The future is the main concern in an analysis of present worth. Values from earlier times are not…

Q: he automobile replaced the horse and buggy for everyday transportation. Electronic downloads of…

A: When goods and services are allocated equally among buyers,it is knows as allocative efficiency.When…

Q: O c. Increase

A:

Q: Consider a perfectly competitive firm in long-run equilibrium. Prices of variable inputs increase.…

A: The perfectly competitive market produces where the P = MC. The firm does not have control over the…

Q: Suppose the information in the table is for a simple economy that produces and consumes only four…

A: Nominal GDP is the value of goods and services produced within the boundaries of the nation. The…

Q: Could you explain in economic concepts the situation in the image why there is scarcity in the…

A: "Scarcity" describes how little economic resources are available in today's economies. A country…

Q: In September the UK Government under the leadership of new Prime Minister Liz Truss announced a set…

A: Budget deficit A budget deficit happens when spending surpassed receipts and can indicate a…

Q: Assume the following: Explicit Cost = 50 implicit Cost = 25 What does Total Cost equal? O a. 25 b.…

A: Total cost is the sum of explicit cost and implicit cost. Explicit cost is the direct expenses or…

Q: ome Creations is a U.S. textile manufacturer. Holmes believes Home Creations may be an attractive…

A: The required return here is a function of three factors: Market, size and value. Several statements…

Q: The following graph has plots of the net PW of an investment as functions of %-ge changes in the…

A: Present worth refers to the discounted value of the future cash value . PW =  Cash flow /(1+r)n…

Q: In the figure, demand is given by the formula p = 100 - Q/1000, where p is price and Q is quantity…

A:

Q: 1.1. The following mathematical equations reflect the performance of the economy and inventory…

A: According to the Keynesian model, the national income is represented as the aggregate demand which…

Q: Which of the following is a normative statement: a. Women’s labor force participation (LFP)…

A: Positive statements are those statements that are based on facts and can be checked whether it is…

Q: All of the following statements about sticky prices are true except: Select one: a. for studying…

A: The theory of sticky wage refers to an economic concept that describes how wages adjust slowly to…

Q: 1.1 Double counting can be avoided when computing GDP by: a) simply deducting a double-counting…

A: When the value added by one particular activity in the production chain is added twice, this error…

Q: Price Level (average price) PE P₁ AD 3 C) $600 billion. D) $800 billion. AD₂ 5.2 AD₁ C 6.0 AS 5.6 QF…

A: Equilibrium is where aggregate demand equals aggregate supply.  Inflationary gap is when the actual…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.