Show the effect of diminishing returns on the marginal and average cost curves of a firm in the short-run. (be sure to explain your diagrams)

Q: a) Discuss advantages and disadvantages when government imposes price ceiling.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...

Q: Consider the following hypothetical firm that is normally producing 200 units of the product per tim...

A: The term "cost of production" refers to all the costs that are involved when a company offers a serv...

Q: Assume both firm 1 and firm 2 are in the market and act as oligopolists. Assume furthermore that the...

A: In Bertrand competition, firms charges price of its product simultaneously.

Q: Which of the following statements is false? O A set of strategies constitute a Nash equilibrium if, ...

A: Option A:  Nash Equilibrium is a situation where there is no unilateral profitable deviation is poss...

Q: Which of the following statements are true? (i) The absolute value of the price elasticity of demand...

A: (i) The absolute value of the price elasticity of demand is greater when substitutes are available. ...

Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at ...

A: We know that Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to...

Q: Comparative statics in the steady-state: draw a new version of the graph from the previous question....

A: Solow model ensures steady growth in the long run period without any pitfalls. It is also known as t...

Q: If the risk-free rate is 3 percent and the risk premium is 5 percent, what is the required return?

A: The required return = return on risk free invested + risk premium So if the risk premium is 5 percen...

Q: Ch. 5 Questions: 1.What is the Fisher Effect and why is it important?,

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Q: The government is considering an increase in the tax on gasoline. They know that the price elasticit...

A: Elasticity of demand: It can be defined as a measurement of the change in the quantity demanded of a...

Q: One In the market for sugar, there has been a discovery of a new technology for more production of t...

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Q: Futures markets in coal can signal which of the following kinds of information? I. They can signal ...

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Q: The Solow model with population growth predicts that a. total income and total capital grow at the ...

A: The Solow growth model is the economic way to express the nature of the economic variable, which con...

Q: If Canadian Tire issues its own "money" and it becomes generally accepted by people in paying for go...

A: In the mentioned question we have to tell whether Canadian Tire who issued the money is which type o...

Q: 2) The first cost of a machine is $60,000. The machine's end of year salvage value over the next fiv...

A: PLEASE FIND THE ANSWER BELOW.

Q: Discuss the role of the full cost prising principle and profit maximization in modern economic trend...

A:

Q: Price 38 Supply 34 28 22 16 Demand 10 6 4 5 10 20 30 50 60 70 80 90 Quantity 40 2.

A: When the world price is less than the equilibrium price, then the domestic demand will be higher tha...

Q: Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125...

A: A futures contract is an agreement between buyer and seller in order to buy/sell a particular commod...

Q: Consider a two-period small open endowment economy with free capital mobility. Households live for o...

A: PLEASE FIND THE ANSWER BELOW.

Q: The following graph depicts the daily labour supply curve for Jake, a worker in the construction ind...

A: Upward sloping labor supply curve for jake shows that there is a positive relationship between the w...

Q: 6. Calculate the profits for firm 1 for the situation described in question 15 before, where the inv...

A: Given :  P = 131 - q1 +q25 MC1= MC2= 50 In case of cournot equilibrium firm choses simultaneous outp...

Q: Assets 1. A $10 bill 2. The funds in a money market account 3. A share in a publicly traded company ...

A: Liquidity is the degree of quick  convertibility of any assets into the cash . The asset is said to ...

Q: A higher reserve requirement is associated with a money supply. Suppose the Federal Reserve wants to...

A: Money Supply" refer to the total volume of money held by the public at a particulars point in time i...

Q: Describe Weber’s Protestant ethic. Explain why Marxcould not have endorsed the relationship between ...

A: Weber’s Protestant ethic Weber claims in the book (The Protestant Ethic and the Spirit of Capitalism...

Q: Two drivers-Kevin and Maria-each drive up to a gas station. Before looking at the price, each places...

A: Elasticity gives the relationship between the responsiveness of price and quantity demanded. 

Q: Briefly explain the short run fixed costs and the variable cost in modern economics?

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Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace it...

A: Given  Initial cost or first cost of the equipment P=$750,000 Operating cost =$240,000 per year Salv...

Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the v...

A: In economics, supply and demand refers to the relationship between the quantity of a commodity that ...

Q: 2000 2007 200n 2000 2010 YEAR e the following table by indicating the exchange rate path for each gr...

A: All answers given below,

Q: I can't find anything to back up that a decrease in aggregate demand causes cost push inflation. My ...

A: Answer: Cost-push inflation: cost-push inflation is caused by an increase in the cost of wages and r...

Q: calculate the expenditure multiplier, if the marginal propensity to consume = .80, the tax rate = .2...

A:

Q: 1.Discuss how the factors of production lead to economic growth. Be sure to provide an example that ...

A: Economic growth is defined as the process by which the economy's final goods and services rise. An i...

Q: When a factory is operating at the level of output where its short-run average total cost is at its ...

A: The marginal cost curve cuts the short-run average total cost curve at its minimum point from below....

Q: Consider the following information on aggregate income, consumption expenditure, and planned investm...

A: Formulas: 1. Saving (S) = Income (Y) - Consumption(C) 2. MPC = ∆C/∆Y 3. MPC + MPS = 1

Q: Explain two strategies a firm in an oligopoly market pursue to increase customer loyalty.

A: Companies that collaborate or work together to reduce competition and control a separate market or s...

Q: There are two firms in a homogenous product market described by the demand function P(q1,q2)=131-(1/...

A:

Q: HW/ Ехample: Determine the probable cost per hour for owning and operating a truck with rubber tires...

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Q: Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess r...

A: Given: Required reserve ratio=5% Amount deposited=$200,000

Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government ...

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Q: Applicant should be evaluated on the basis of their qualification and work experience, this will avo...

A: A code of ethics and professional conduct explains the ethical standards that guide a company's or o...

Q: 2. Consider the four-player game in Figure 2 Figure 2 b, b. as as b, 4 3. 1. 2 4 2. d, d, 1. 5 4 Fin...

A: Given game

Q: What determines the slope of the Market Supply Curve over the long run? Discuss some reasons why it ...

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Q: Which of the following are characteristics of "good" money? Instructions: You may select more than o...

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Q: Assume there is a certain population of fish in a pond whose growth is described by the logistic equ...

A: Percentage change in a particular variable over a specific period is called growth rate. The compoun...

Q: Anecdotal evidence suggests that some insurance companies in Germany advertise specifically to certa...

A: In the insurance market, it can be seen that there is high risk or more probability to have market f...

Q: Answer the following questions about country A. a)   What was GDP equal? b)   What was the value o...

A: Calculation is as follows:  

Q: O False QUESTION 18 Buyer-seller relationships are typically more import O True O False QUESTION 19 ...

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

Q: In situations of exces demand, sellers might lower quality when they are unable to raise prices beca...

A: In a market, excess demand refers to the situation when there is more demand for goods and services ...

Q: What things do people do now which they couldn't do before globalization?

A: Globalization is described as the spread of technology, products, jobs, and information across count...

Q: The IS relation implies that the taxes increase leads to output decrease. Explain

A: It's difficult to quantify the economic effects of tax changes on economic growth, as measured by ch...