Offer an example of a good or service with a negative externality. What is the externality of the good or service you mentioned?

Q: Explain how two countries trading with which other gain from economic trade or mercantilism.

A: Globalization is defined as a process in which multinational firms, individuals, and governments…

Q: Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She…

A: According to the Rule of thumb for pricing with an "incremental margin percentage" Incremental…

Q: Most individuals and businesses cannot pay for large economic losses, so they share the risk with…

A: Most people and organisations cannot afford to pay for huge financial losses, so they buy insurance…

Q: Multinational firms often use Geographic Organisational Structures of departmentalisation to address…

A: A multinational firm is a firm with operations that extend beyond its domestic national borders.…

Q: A] Measurement error in the dependent variable leads to biased OLS estimates? a-Yes, always b No,…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: List the three reasons for why the aggregate-demand curve slopes downward. Explain Answer

A: At each price level, an aggregate demand curve depicts total spending on domestic goods and…

Q: If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional…

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Q: If two identical firms with marginal cost 5 and demand curve P=70-2Q compete using the Cournot…

A: The demand curve shows the relationship between a commodity's or service's price and the amount…

Q: D Question 27 Your grandmother says that things are lot better now for the average worker compared…

A: To find the best and the worst decades we find the a ratio which indicates percentage change in CPI…

Q: Millet (a type of grain cereal eaten my many in the developing world) and rice are normal goods…

A: When other goods are provided, the demand function is a link between the customer's demand for a…

Q: What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why…

A: The market that depicts the behavior of all potential borrowers and potential savers that exist in…

Q: A certain annuity pays P 80 at the end of every 3 months. If the present value of the annuity is…

A: Answer is given below

Q: Source: Editorial Board, "How Much Will Americans Sacrifice for Good Health Care?" New York Times,…

A: Price Regulation: The term price regulation refers to the setting of prices by the government itself…

Q: Select the correct statement about the centipede game in our lecture. Group of answer choices The…

A: In game theory, the centipede game is an extensive-form game in which two players alternate taking…

Q: Maria is preparing for a job interview at a local hospital. Based on what you know about…

A: Identifying a decision, acquiring information, and evaluating possible remedies are all steps in the…

Q: When GDP and incomes are high the government collects more dollars in tax revenue. When they're low,…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: The marginal social cost (MSC) of an electricity generating plant that uses coal is estimated by a…

A: Given information MSC=3Q MPC=Q P=60-2Q

Q: 1. Given the following information: U= (1/3)X^Y*; Px= 6; Py= 6; I = 2,430, a. calculate the effect…

A: Utility function : U = (1/3) X1/2 Y4 Px = 6 , Py = 6  Income = 2430  Budget Constraint : 6X + 6Y =…

Q: the economy's ability to produce goods and services increases the demand for goods and services will…

A: The money supply curve is vertical because the Fed sets the amount of money available without…

Q: what is creative destruction? How does it contribute to economic development and industrial churning…

A: Capitalism is considered propelled by creative destruction or long-held traditions to make way for…

Q: For all True/False questions, you must explain why the answer is true or false. 1. sold last year,…

A: here we find whether the given statement is true of false by the following method as follow:-

Q: The U.S. is currently experiencing high inflation. What is the medium-run explanation for this…

A: Inflation is the rise in average genral price level of basket of goods over period of time . It…

Q: Write True on the space if the statement is correct. If it is false, explain why it is so.  9.…

A: In economics, people study various concepts related to the marketplace and the whole economy when…

Q: difference between MNEs in emerging market economies and Western (traditional) MNEs

A: Since there is so much diversity across emerging market countries, the definition of emerging…

Q: If the demand for the dollar decreases on the international market, or the supply of the dollar…

A: Appreciation is defined as an increase in teh value of currency whereas depreciation refers to the…

Q: Trillions $20.0 GDP Consumption Government Spending Exports Imports Budget Balance 14.0 3.0 2.2 2.7…

A: According to change in the saving and investment, the capital flow also keeps on changing.

Q: 2. An investment of 105,815.40 can be made in a project that will produce a uniform annual revenue…

A: An investment of 105,815.4 a uniform annual revenue of 53,000 for 5 years a salvage value of 30,000.…

Q: When interest rates increase in the United States O there is a tendency for the value of the dollar…

A: Interest rate is.the rate at which monetary instruments are exchanged in the market.

Q: True or False? Adam Smith believed that his concept of an “invisible hand” guiding human behavior…

A: Adam Smith advocated the concept of free market with invisible hand, in contrast to Keynes who…

Q: Scenario1 There are two identical firms with zero marginal cost and they face a market demand curve…

A: In the counot model we determine the output simultaneously to get maximum profit. Aa given Demand…

Q: A firm faces the demand curve: P = 1,350 - 8Q. What is the firm's revenue maximizing price? Enter as…

A: Total revenue is the product of price and quantity.

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A: Here, a student states that there will be change in price level as well as real output level, in the…

Q: Why rising commodity prices and wages might lead to cost-push inflation?

A: Inflation, in economics, is defined as an increase in the general price level of all the goods and…

Q: Consider the Ramsey Model of the macroeconomy. Explain using a phase diagram how an economy starting…

A: The Ramsey-Cass-Koopmans model, sometimes referred to as the Ramsey growth model, is a neoclassical…

Q: A new office building has been constructed at a cost of $3,000,000. It is estimated to have a life…

A: The equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset…

Q: The table represents the monthly output of five companies in the electric scooter manufacturing…

A: The minimum efficient scale is the output level corresponding to the minimum value of LRAC (i.e.,…

Q: When population growth and depreciation are non-zero, what is the Solow equation: a. Δk = sf(k) -…

A: According to the Solow model, saving and investment are the key components of economic growth.  A…

Q: Explain why perfect competition is not compatible with firms having increasing returns to scale…

A: In perfect competition there ate large numbers of buyers and sellers in the market and exchange…

Q: 6. Sarah and Clare have identical utility functions U = 5 In(x)+y: Sarah starts out with 16 units of…

A: Utility function of both Sarah & Clare : U = 5ln(x) + y  Endowments of Sarah : (16  , 5 )…

Q: The price elasticity of demand for personal computers is -1.5. Which of the following is true? a. An…

A: Price elasticity of demand is defined as a change in the relative quantity demanded of a good due to…

Q: Discuss the type of price control that can be implemented by a government to protect vulnerable…

A: Introduction : The price control implemented by government in labour market → minimum support price…

Q: C. Explain five economic conditions for an increase demand for education. ;

A: here we explain five economic conditions for an increase demand for education as follow:-

Q: show solution

A: Total cost is the expenditure that is incurred in the production of goods and services. The total…

Q: Economics

A: Positive demand shock means the demand curve shifts rightward such that the demand increases then…

Q: You find that both the US and ECB treasury yield curves are backwardated. This is suggestive that:…

A: While the current situation resembles Greenspan's bond problem in some ways. The changes in bond…

Q: Suppose a firm’s total cost curve is TC = 50Q2 + 10Q + 800 and marginal cost is MC = 100Q + 10. Find…

A: The marginal cost curve cuts the average cost curve and average variable cost at their respective…

Q: Price Level Prices for plastic, a key input in many industries, have decreased due to new technology…

A: Aggregate demand is a macroeconomic term that refers to the total demand for goods and services over…

Q: 8. For a certain potential investment project, we have the following estimates: Capital investment I…

A: Given information Initial capital=$100000 Annual revenue=$30000 Annual expenses=$9000 Market…

Q: What are the consequences of publication bias? (select all that apply)

A: Publication Bias is defined as the bias where the failure to publish results on the basis of…

Q: Many people in the property and liability insurance industry complain about the “automobile…

A: The primary goal of purchasing insurance is to restore your financial well-being in the case of a…

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.