Q: In the market for goods and services in the circular flow diagram, Select one: A. firms provide…
A: The circular flow can be explained as the flow of goods & services along with the money, which…
Q: If costs of production of good X increases what happens with supply or demand for good X? Explain!
A: Cost of production is the monetary value incurred on factor of production used to produce goods and…
Q: Can you explain donut economics
A: Economics: It describes the interaction of people with value.
Q: 21 Food 15 12 012 Computers
A: The opportunity cost refers to the cost of the next best alternative foregone while taking a…
Q: Market Equilibrium is important to both producers
A: ‘Equilibrium’ refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…
Q: why is average product low for a good
A: Total product represents the maximum output that a firm is able to produce with its capital and…
Q: In the markets for factors of production Select one: O a. households provide firms with profit. O b.…
A: Market for factor of production indicates the transaction of money and production factor such as…
Q: Which method is used to find the optimal allocation of natural resources? Explain with the help of…
A: Natural Resource Economics is defined as the demand, supply and the allocation of the Natural…
Q: Fountain pen and ink are Substitute goods. True/False
A: # as the name suggest substitute goods are those words which can be used on place of each other for…
Q: What's the difference between economic equilibrium and market equilibrium? Please give the most…
A: What's the difference between economic equilibrium and market equilibrium? Definition of Market…
Q: Which of the following does not shift the supply curve for marble rye?A) A change in the price of…
A: To determine the factor that does not shift the supply curve for Marble Rye.
Q: A competitive market is characterized by:
A: Answer: 1) Option (a) is Correct Many buyers and sellers
Q: what is the optimal price for the quantity of goods for the firm to produce?
A: Optimal price is the price at which at which the seller can make maximum profit.
Q: Calculate the opportunity cost of moving from a) Q to R in terms of food b) T to V in terms of…
A: Meaning of Opportunity Cost: The term opportunity cost refers to the situation under which the…
Q: Explain the movement from point A to B for the production of these two goods.
A: Production possibility curve shows the combination of two goods that can be produced with the given…
Q: The oversupply of bananas in Mexico, which is recorded in the months of September and October,…
A: The increase in income that occurs from the sale of one more unit of production is known as marginal…
Q: Using the figure above, what is the optimal quantity of goods for the firm to produce?
A: The condition for optimal output for a firm is when: MR=MC Thus, in the given figure, when the MR…
Q: If the price ofa resource required to produce a good increases, the supply curve will shift to the…
A: supply curve is depend on the many factor like technology improvement , input cost and many more so…
Q: Answer this question based on the table in the picture below Suppose six units are currently being…
A: Here, in the table given, it can be seen that there is a constant marginal cost at every next unit…
Q: Given the income-consumption curve to shown to the right. Good X is good and good Y is
A: Given the Income consumption curve in the graph. The income consumption curve shows the chosen…
Q: Describe a microeconomic variable for Dairy product
A: Economics refers to a study of behavior of human beings to satisfy their unlimited wants for scarce…
Q: Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are…
A: The market price at which the supply of a product equals the quantity demanded is referred to as the…
Q: An efficient allocation of resources occurs when?
A: An efficient allocation of resources happens when resource allocation can be governed with the…
Q: • Refer to fig. 2.1 in the text. 1. Identify the optimal level of production of this good. 2. In…
A: 1. Optimal level of production is determined at the point where, MB=MC Thus, the condition for the…
Q: Suppose the market for refrigerators is illustrated in the figure to the right. Assume refrigerators…
A: Given is the market for refrigerator. There are two demand curves.
Q: In what sense is a competitive equilibrium a good or bad thing for a given economy?
A: When talking about competitive equilibrium, it is the situation in the market where many firms…
Q: Discuss how firms choose how much output to produce.
A: Total Cost is the amount of expenditure incurred in the production of goods and services. Total…
Q: What happens to the supply curve when the price of the factor of production would rise?
A: A rise in the price of factors of production, is a part of other factors other than the price change…
Q: What is commodity A.something that producers unable to sell to consumers B.A resource that is…
A: A commodity is a basic good used in trade that may be exchanged for similar products. Commodities…
Q: Explain the concept of market equilibrium with an appropriate diagram
A: The market is in equilibrium at the point where the demand is equal to supply.
Q: Which one of the following variable, the firm can influence directly? a. Store location b. Consumers…
A: A firm refers to a business entity that provides goods and services to people and aims to maximize…
Q: The graph shows the schedule for hours of tutoring in economics. If the price increases from…
A: The area left to the equilibrium demand and supply quantity is the total surplus. Initial price,…
Q: What is the goal of a firm in a market economy?
A: In a market economy(free markets), the prominent goal of a firm or business entity is to maximize…
Q: Why/When Producers/sellers are bound to follow law of supply?
A: Supply- It is an amount of a good or service that is available for use.
Q: Identify the point or points for which the following is true: Production of pizza can be increased…
A: When two different goods (like pizza and beer, here) are to be produced using the same amount of…
Q: The quantity of a certain commodity that is offered for sale at a certain price at a given place and…
A: The answer is - Quantity supplied or supply
Q: Refer to the figure at right. Which of the following changes causes the move from A to B? A. The…
A: • The movement from point A to point B appears to be a direct outcome of the cost change, as shown…
Q: Why are participants in competitive markets called price takers?
A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers can…
Q: In the circular-flow diagram, firms are sellers in Select one: O a. the factors of production market…
A: The household sector is the sector that purchases the final products and services for consumption…
Q: What happens when a producer produces Q* amount of quantity and sells it at the price level of P*?…
A: In a competitive market, there exists a large number of buyers and sellers of the good in the market…
Q: Refer to Table 2-2. Assume Nadia's Neckwear only produces ascots and bowties. A combination of 8…
A: Production possibilty frontier depicts the combination of two goods that can be produced by using…
Q: Say whether the following statement makes Good Economic Sense, is Complete Economic Nonsense, or is…
A: The market is a place where the buyers and sellers together interact in the market place and as a…
Using the figure above, what is the optimal quantity of goods for the firm to produce?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?What are four responses to the claim that people should not behave in the way described in this chapter?)ncob buys only milk and cookies.a. In yeor 1, Jocob earns $100, milk costs $2 perqua rt, and cooki es cost S4 per dozen. Ora\"•jacob's budget constraint.b. Now suppose that a ll prices increase by10 percent in yeor 2 ond !hot jacob's salaryincreases by 10 percent as well. Draw jacob'sn<:w budget constraint. How would Jacob'soptimnl combination of milk and cookies in year 2compare to his optimal combination in year 17
- The government of the island nation of Autarka has become increasingly concerned aboutthe health and wellbeing of low income households. Medical experts stress the importanceof a healthy diet in this regard. They have determined that, ideally, a household wouldconsume at least 5kg of fresh fruit and vegetables each week.The government has proposed implementing a new voucher scheme to ensure that the5kg per week consumption target is met. Under the government’s proposal, the voucherswould be redeemable for fresh fruit and vegetables, but could not be used for other typesof food, or for non-food consumption. Moreover, to limit the cost of the voucher scheme,the value of the vouchers sent to a household would be linked to the household’s income.Community groups in Autarka have expressed concern that a voucher scheme is unnec-essarily paternalistic; depriving low income households of the choice of how to spend theirincome. These groups argue that the government’s consumption targets could…ASAP DECİSİON RULE FOR UTİLİTY MAXİMİZATİON As I understand we choose the good which has higher marginal utility per dollar . BUT MY QUESTİON İs that What if our budget is not end up and the marginal utility per dollar is same for both good What should we do at that point? PLEASE ANSWER MY QUESTİON DONT GİVE CLLASİC DEFİNİTİONCarol needs to decide how to spend her wealth on sh and chicken.For Carol, 1 lb of sh is equivalent to 2 lb of chicken. Her preferences2Intermediate Microeconomics NYUAD, Spring 2023can be represented by the utility functionu(x; y) = 2x + ywhere x is the quantity of sh (in lbs) and y is the quantity of chicken(in lbs). The consumption set is R2+.(a) Draw two typical indi erence curves for Carol, one correspondingto a utility level of u1 and one corresponding to a utility level u2,where 0 < u1 < u2. Make sure you label the slope of the indif-ference curves and the intercepts with the horizontal and verticalaxes.(b) Suppose the price of sh is $1:5 per lb and and the price of chickenis $1 per lb. Carol has $20 to spend on sh and chicken.(i) Draw Carol's budget set, labeling the slope and the interceptpoints clearly.(ii) How much sh and chicken will Carol choose to purchase?
- In today’s economy, it’s harder for workers to get promoted. In 2006, it took an averageof 2 ½ years to get a promotion; today it takes 4 ½ years. As a result, fewer workers are willingto boost their productivity in an effort to impress the boss and get the promotion. In 2006, 25percent of employees said they were willing to give “an extra oomph” at work (boost theirproductivity); today about 15 percent are willing to do so. Explain the connection to the Phillipscurve.If an economy can produce various combinationsof food and shelter along a productionpossibilities curve (PPC), then if we increase theproduction of shelter along the PPC, which ofthe following is true?a. We also increase the production of food.b. We must decrease the production of food.This forgone food production representsthe opportunity cost of the increase inshelter.c. We cannot change the production of food.d. The concept of opportunity cost does notapply along PPC.Total utility is maximized in the consumption oftwo goods by equating thea. prices of both goods for the last dollar spenton each good.b. marginal utilities of both goods for the lastdollar spent on each good.c. ratios of marginal utility to the price of bothgoods for the last dollar spent on each good.d. marginal utility of one good to the price ofthe other good.
- On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according tothe functionU(c, b) = 20c− c²+ 18b − 3b²a. How many cigars and glasses of brandy does he consume during an evening? (Cost isno object to J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum ofglasses of brandy and cigars consumed to 5. How many glasses of brandy and cigarswill he consume under these circumstances?You found your utility preference given by U (w, d) = w√d where w is your wage, and d is the amountof noise (ie - decibels) you must listen to at your job. Let’s assume you have the option to workat home in silence (where d = 36), in a cubicle office (where d = 64), or in an open-air sharedworkspace (where d = 100). Further assume the economy is in equilibrium, and you do not haveincentive to change jobs.(a) Assuming working at home gives you a wage of $100, what would your wage be working in thecubicle office? In the shared workspace?(b) What is the compensating wage differential between these jobs?(c) Explain why the wage is different in each situation, and give an example of another indus-try/situation with a compensating wage differential.During any year, I can consume any amount that doesnot exceed my current wealth. If I consume c dollars duringa year, I earn ca units of happiness. By the beginning of thenext year, the previous year’s ending wealth grows by afactor k.a Formulate a recursion that can be used to maximizetotal utility earned during the next T years. Assume Ioriginally have w0 dollars.b Let ft(w) be the maximum utility earned during years t, t 1, . . . , T, given that I have w dollars at the be-ginning of year t; and ct(w) be the amount that should be consumed during year t to attain ft(w). By workingbackward, show that for appropriately chosen constantsat and bt,ft(w) btwa and ct(w) atwInterpret these results.