Explain the characteristics of production in the short term vs the long tem in terms of factors of productions and diseconomies of scale

Q: Output in an economy is given by the production function, Y=AK 2575 where Y is output and A measures…

A: IntroductionWe have given data of neoclassical theory of economic growth which is developed by the…

Q: All of the following statements are true about pure competition in the long run, except   a.) The…

A: Business economics is the study and analysis of commercial barriers affecting organizations using…

Q: Exercise 1 The table below represents the production function for Hawg Wild, a small catering…

A: An equation between the input and output in the production process is the production function. In…

Q: Hi, just wondering why (1+r) is shown in the budget constraint, rather than 1/(1+r

A: In the context of economics and personal finance, a budget constraint is a basic concept that…

Q: Suppose a consumer with income I has preferences over consumption bu XY. Suppose th be represented…

A: Utility function : U = X1/5 Y4/5Price of X =  1Price of Y = 2 Income =  I Budget Constraint  :  I =…

Q: A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations…

A: Demand signifies the amount of a particular commodity or service that individuals are inclined to…

Q: Multiple Select Question Select all that apply When evaluating the relationship between capital…

A: A country's asset move to another country is known as capital inflow. The money is used for…

Q: Canada’s voting share at the IMF is   2.22% 1.29% 15.57% 12.5% 3.51%

A: The IMF stands for the International Monetary Fund. It is an international organization established…

Q: Which of the following utility functions represent preferences that are NOT homothetic? (a) U(X, Y)…

A: A utility function is homothetic if it can be represented as a monotonic transformation of a…

Q: At the profit-maximizing level of output for a monopolist: a)Price is greater than marginal cost…

A: In a monopoly market structure,  There exists a single seller. There exists high barriers to entry…

Q: 5. Minimum-wage laws and unemployment Consider the labor market defined by the supply and demand…

A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…

Q: Given this diagram, what is the simple income multipier?     a) 1/2     b) 2     c) 10     d) 70…

A: Consumption is the sum of autonomous consumption and consumption dependent on income. Disposable…

Q: QUESTION 1 For the production function Qs = K0.8L0.3 find the returns to scale, recall that a…

A: Return to scale: It tells us that if we increase capital and labor by a factor of 't', then how much…

Q: 73. IcecultureInc of Ontario emplyes 50 people and exports around the world. It would be considered…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Suppose the residents of country P consume only peaches and pecans. The table below shows the prices…

A: The inflation rate measures the price change or measures the increase in prices over some time. The…

Q: QUESTION 22 Figure: Three Firms That Pollute Marginal benefit of Individual polluter $1,000 0004 FA…

A: Marginal benefit is the gain earned by consumers by additional buying of goods. By buying more…

Q: The graph to the right depicts a specific factors economy that produces two goods: cloth and food.…

A: Relative Price of Cloth (Pc/Pf): This is the ratio of the prices of cloth (Pc) to food (Pf). It…

Q: I see some mistakes on solve equations for x2. Please review so is a grade-3 polinomic equation:…

A: Given the utility function: With prices: And a monetary income (budget constraint) of: To determine…

Q: The aggregate supply curve shows the relationship between real GDP and the average price level. O…

A: Aggregate Supply Curve: A graphical representation that illustrates the relationship between the…

Q: Which of the following statements about the relationship between elasticity and tax incidence are…

A: Tax incidence alludes to the circulation of the economic burden of a tax among various people or…

Q: The correct answer is not -2 If you think you've entered the right answer, check your spelling or…

A: Economics' concept of cross-price elasticity of demand, or simply cross-price elasticity, quantifies…

Q: Price Level 0 C B Real GDP AS AD₁ AD₂ AD₂ Refer to the figure. The economy is at equilibrium at…

A: Demand-pull inflation refers to the increase in the general price level in an economy due to an…

Q: Exercise 5 Acme, Inc., has just completed a study of its production process for gadgets. It uses…

A: Marginal product of labor is the change in total product due to an additional labor hired. Marginal…

Q: The graph below depicts an economy where an increase in aggregate demand has caused inflation.…

A: The economy to its long-run equilibrium, We can follow these steps:a. Calculate the change in…

Q: Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton.…

A: The subsidy results to a wedge between the price paid by the consumer and the price received by…

Q: True or false: The strategy profile where player 1 plays B and player 2 plays C is a Nash…

A: Nash equilibrium is a situation where no player has an incentive to deviate given the strategy of…

Q: Price, TR, MR 0 Quantity A B Refer to the above graph for a firm in pure competition. Line B is…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

Q: The island nation of Coconutistan recently suffered an unfortunate accident which took its water…

A: The price ceiling refers to the maximum price that can be charged for the good by the market. Price…

Q: 1. The New Age firm produces clean coal. New Age's production function is given by q = L3S3, where L…

A: The production function shows the relationship between the input used and the output produced.The…

Q: A mining company is performing an economic analysis between two equipment. The initial price for…

A: This can be defined as the tool that is used by the individual, business, or any other organisation…

Q: The US Government is facing major budget deficit deciding between implementing fiscal and monetary…

A: Macroeconomic analysis, which gives essential information about a country's financial health, is the…

Q: An investor is considering two investments for his portfolio. Investment A requires an initial…

A: The cash flow of Plan A and Plan B is summarized in the table below:Plan APlan BInitial…

Q: Units of the Good 0 1 2345678 Total Utility Total Utility of X of Y 0 0 620 1740 1120 3030 1500 3960…

A: Utility maximization is an economic theory that states that individuals and organizations make…

Q: The source mentions a fourth factor of production: entrepreneurship. In what sense could it be…

A: The practice of identifying possibilities and seeking innovative solutions to satisfy market demands…

Q: Suppose employment is 139 million and unemployment is 9 million. Also, each month an average of 1.2…

A: Unemployment refers to a state at which the a person who is actively seeking for the work or job but…

Q: Interest rate (percent per year) a O 8 2 0 MS MD₁ 3.0 3.1 3.2 3.3 3.4 3.5 Real money (trillions of…

A: The market for money reaches equilibrium when both the quantity of money demanded and quantity of…

Q: 2. Honda Large Small Don't expand a) Are there any dominated strategies? b) What is the Nash…

A: A strategy is said to be the dominated strategy when a player never chooses that strategy…

Q: In the year 2027, aggregate demand and aggregate supply in the imaginary country of Patagonia are…

A: Equilibrium in the goods market is achieved at the intersection of aggregate demand and aggregate…

Q: How might privatization and exclusive property rights be the best way to protect endangered species

A: Privatization refers to the process of transferring ownership or control of government assets,…

Q: Consider the game represented below. Player 1 CDE Player 2 Hau H F G 2,2 0,0 0,0 0,0 0,0 1, -1 0,…

A: In game theory, a subgame perfect Nash equilibrium is a concept used to analyze sequential games,…

Q: 2. Suppose the inverse demand for a good is P = 100 - 2Q and the inverse supply of a good is P = 3Q…

A: Externalities occur when there is an indirect impact on a party that is not directly related to the…

Q: At the market price in part a, the net gain to consumers when 10,000 units are purch ased is…

A: Net gains to consumers or Consumer surplus is the area below the demand curve and above the…

Q: In-Class Question 10.2 During the Great Depression of 1930s, which of the following factors…

A: An economic shock is an unpredictable occurrence that impacts the economy. It primarily impacts the…

Q: In order for the government to intervene successfully, it must use a

A: Private cost refers to the expenses borne by individuals or firms involved in a specific economic…

Q: Exercise 1 The table below represents the production function for Hawg Wild, a small catering…

A: Production Function:An equation between the input and output in the production process is the…

Q: The figure shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that…

A: A market with very minimal competition is referred to as a monopolistic market. It does not imply a…

Q: Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage.…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: Is the healthcare industry "too big to fail?"

A: The concept of an industry being "too big to fail" has its origins in the financial sector, where…

Q: Suppose a firm's total cost function is TC(Q) = (Q-387)2 What is the efficient scale of production?…

A: Efficient scale of production refers to the level of output at which a company or a producer can…

Q: Consider the diagram below. At point C, which of the following statement(s) is (are) true? When…

A: Consumer surplus:Consumer surplus is the gain of the consumer That is in terms of prices when the…