If a firm triples inputs and produces twice the output, then there are constant returns to scale. no returns to scale. decreasing returns to scale. increasing returns to scale.

Q: Below are the annual costs and benefits of four alternative road projects. Apply the incremental B/C…

A: To find the best alternative, we need to find the B/C ratio of all projects and if the B/C ratio is…

Q: The Utility fct is U = W2/3 + 1000 Flood occurs with Probabilities=1/20. The Value of house $540,000…

A: Given  U = W2/3 + 1000  if flood , P(flood) = 1/20 , value of house = $40,000  if no flood , P(no…

Q: Draw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not…

A: The combination of more than one input, such as labor and capital, that can result in a specific…

Q: Which statement is definitely true about shelter in the above below? S/Week 100 5 10 12 14 3 25 50…

A: Equilibrium occurs where the indifference curve is tangent to the budget line. This is because the…

Q: The industry demand curve for a particular market is Q = 1800 - 200P. The industry exhibits constant…

A: Perfect competition is a market structure in which there are many tiny enterprises producing…

Q: 2. Implications of inflation and deflation Suppose that you are running a business, and you need…

A: The situation which depicts a general rise in prices of goods and services in an economy during a…

Q: What are the four basic factors of production? Provide at least one example of each factor of…

A: Production is the process of creating goods and services that satisfy human wants and needs using…

Q: Identify whether the scenarios below represent an incentive provided by property rights or an…

A: In simple words The Coase Theorem states that in case of economic situation which is considered to…

Q: In terms of game theory, explain "tit-for-tat" and provide an example. Why does it work relatively…

A: In game theory, tit-for-tat is a technique that includes at first cooperating with an opponent and…

Q: 2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns an 18-acre plot of…

A: Production possibilities frontier shows different combinations of two goods that can be produced…

Q: 10 Billiong, -12billion is the answer.

A: he current account of a country measures the value of its international trade in goods and services,…

Q: a) As countries' per capita incomes increase, the gap between a PPP measure of their GDP and a…

A: PPP , or  Purchasing  Power Parity, is a measur of GDP that  takes into account the differences in…

Q: An investment of $10,000 can be made that will produce a uniform annual of $5,500 for five years and…

A: Annual profit refers to the financial gain or surplus obtained by a business or individual within a…

Q: Suppose that there are drastic technological improvements in shoe production at Home such that shoe…

A: Given the below data: For computers Payments to labor = WLC = 50 Payments to capital = RKC = 50…

Q: Now consider the effect this change in the labor market has on the land market. In particular, think…

A: Equilibrium wage rate is at the point where the demand for labor equals the supply of labor.

Q: a) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are…

A: Elasticity  of labor  demand is a measurr of the responsiveness of the quantity of labor demanded to…

Q: lized, P=MC. He makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this…

A: The firm faces monopolistic competition, which means that it operates in a market with many other…

Q: The Office of Federal Housing Enterprise Oversight collects data on various aspects of housing costs…

A: The correlation coefficient (between 2 variables X & Y) is independent of the change of origin…

Q: 32. An economy is currently producing above Potential Output. An Increase in the Money Supply will:…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.…

Q: Mark has a project in the shape of a rectangle. He received the total estimate for the exterior…

A: Given information is as follows -  Following are the labor cost of each trade  Exterior envelope:…

Q: of long-distance calls to New York, the rental fee, and $3 for each airtime minute, was $160. (a)…

A: Total cost, which includes both fixed and variable expenses, is the word used to refer to the total…

Q: The following table shows data on the average number of customers processed by the service units of…

A: Labour productivity is a measure of the efficiency and effectiveness with which a worker or group of…

Q: ABC Manufacturing has found that when it charges $10 for its product, its total revenue is $5…

A: Market structure refers to the characteristics of a particular market that tells about the number of…

Q: What is the Professor's expected payoff in equilibrium? MRS. PEACOCK Conservatory Ballroom Revolver…

A: In game theory, expected payoff refers to the average outcome or expected value associated with a…

Q: The demand and supply functions in the market  for Dentemprika yam are given as: Q =300-50P and…

A: The equilibrium is attained where the demand and supply forces are equal. Following are the given…

Q: 4) Refer to Figure 13.6. The Memory Company's school yearbooks. level of output is 200 high

A: A firm produces at the intersection of the MR and MC curves to maximize profit.  Hence, the quantity…

Q: The figure shows the demand for money curve in Epsilon. The quantity of money is $3.1 trillion. Draw…

A: The demand and supply of money play a crucial role in determining the equilibrium in the money…

Q: Laura's preferences over commodities x₁ and x₂ can be represented by U(x₁,x₂)=min{3x₁, x₂}. She…

A: Two goods are complements when they are always consumed together in a fixed proportion.

Q: A. Explain the principle known as monetary policy ineffectiveness and discuss Lucas’ argument as to…

A: Monetary policy refers to the actions taken by a central bank or monetary entities to oversee and…

Q: can you please annotate this and show all working working out

A: Markup is adding value of the firm which is added in the cost of production of the firm. So markup…

Q: Identify whether the following scenarios represents a merger or an acquisition: A. Acquisition B.…

A: Let's first understand what does the two terms "merger" and "acquisition" means:- A merger is…

Q: Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for…

A: Total revenue is the product of price and quantity.  Marginal revenue is the change in total revenue…

Q: Suppose that an economy’s production function is Cobb–Douglas with parameter a=0.3. a. What…

A: The production function determines all the input bundles that produce the same output level. The…

Q: The average consumer at a firm with market power has an inverse demand function of P = 10 − Q. The…

A: Optimal price means the point of the price at which the seller has maximized total profit.

Q: Suppose the central bank for the Island Nation of Somberio creates a new currency and issues…

A: The money multiplier is the amount by which the money supply increases for every unit increase in…

Q: Refer to the table to the right. Over what range of prices is the demand price inelastic? A. between…

A: Price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Which is an intrinsic reward? 401-k matching promotions salary creative pursuits

A: An intrinsic reward refers to a psychological or internal motivator that comes from engaging in an…

Q: me right which shows ase for the price of the ct the demand curve producing that nel (a) OR Panel…

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

Q: Fill in the following table with the quantity sold, the price buyers pay, and the price sellers…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: With the aid of an appropriate diagram explain individual utility and social choices

A: Individual utility refers to the satisfaction or happiness that an individual derives from consuming…

Q: Cellco is a wireless service provider whose pricing for data services has evolved over time. This…

A: Cellco is a wireless service provider: Demand functions: Low demand: PL=0.5-0.0025QL High demand:…

Q: When is the firm operating in the short run and when does it operate in the long run? and Discuss…

A: In economics, the concepts of the short run and long run are used to analyze the time frames within…

Q: Suppose there is some hypothetical closed economy in which households spend $0.80 of each additional…

A: Given In this hypothetical economy, the household spends $0.80 of each additional dollar and saves…

Q: Congratulations one more time. You have been appointed chair of Economic Advisers in Fantasyland.…

A: Aggregate demand is the sum of consumption , investment, government spending and net export.  Tax…

Q: Reason of choose Zimbabwe for using fiscal and monetary policy to solve macroeconomic current issues…

A: The study of macroeconomics is a branch of economics that focuses on how the economy as a whole…

Q: Nobody grows or squeezes more oranges than Brazil, where orange trees now outnumber people and…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would: a.…

A: Based on nations' factor endowments, the Heckscher-Ohlin model is a theoretical framework for…

Q: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of…

A: Secure strategy here implies dominant strategy

Q: QUESTION FOUR a) In words, explain the difference between real and nominal wages.

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza…

A: Given:  New pizza sale = $16 millions  31% of this new pizza sales is coming from old customers who…

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.