Suppose Globe practices first-degree price discrimination and is faced with the following demand and  marginal cost functions: Q = 6000-100P P = 65 – 0.01Q MC = 6.68 + 0.0068Q   (a) Compute for Globe’s consumer surplus and producer surplus.    (b) Does the social welfare improve because of Globe’s strategy of first-degree price discriminating?  Explain intuitively and show graphically.

Q: What happens to hours of work when wage rate decrease

A: Wage rate refers to the pay that the workers get for working per hour. The number of hours worked by…

Q: Uver is a new car ride service in town. The market demand function for Uver rides is estimated to be…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: How did the ECONOMIC factor of the PESTELE model lead Trump when assessing TikTok as a threat to…

A: The abbreviation PESTEL refers for political, economic, social, technical, legal, and environmental…

Q: A farmer finds that if she plants 70 trees per acre, each tree will yield 40 bushels of fruit. She…

A: A farmer grows crops to get a fair return. The produce of a farmer, however, depends on the yield of…

Q: A firm employs two workers. Together, these workers produce 30 oranges. The firm hires a third…

A: Total product of labor refers to the total value of all the goods and  services produced by all the…

Q: Consider the demand curve for hair cuts is given by Q=100−2P and the market equilibrium price equals…

A: The consumer surplus refers to the difference between what a consumer is willing to pay and what…

Q: Question 6 Which of the following is NOT an operating instrument? O nonborrowed reserves federal…

A: Operating Instrument is also known as policy instrument. It is a variable that signifies what a…

Q: You have data on the average productivity of workers for firms across Australia. You also observe…

A: A sequence (or a vector) of random variables will be considered to be homoscedastic in statistics…

Q: Suppose Congress decides to reduce the budget deficit by cutting government spending. a. Use the…

A: The Keynesian Cross Model was developed by J.M. Keynes in the 1930s. According to Keynes, "Demand…

Q: Annual expenses for two alternatives have been estimated on different bases as follows. End of Year…

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

Q: Question 10 Fiscal policy involves the manipulation of O federal government spending and tax…

A: Fiscal Policy makes use of adjusting government spending and taxation in order to achieve the…

Q: 36 Recent technology has made possible a computerized vending machine that can grind coffee beans…

A: The internal rate of return or IRR is a metric utilized in financial and economic analysis to…

Q: What is generally the case for a monopolist's average revenue? Select one: O a. It is equal to…

A: In case of Monopoly there is a single seller who controls the entire market. The firm is the Price…

Q: No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $4.7 million in…

A: A compensating balance is the bare minimum that a specific borrower must maintain in their bank…

Q: Provide the two benefits to the U.S. government of granting income tax credits.

A: A direct tax deducted from a person's earnings. It is a tax charged by the Government of India on…

Q: Suppose you choose to plant flowers that attract pollenating animals, such as bees and humming…

A: Uncompensated harm is similar to a negative externality as it results in social cost to a third…

Q: Calculate the benefit/cost ratio at i-5% for a highway project. The first cost is $150,000 and O&M…

A: B-C ratio is the benefit to cost ratio.  B-C ratio is calculated by dividing the  net cost from net…

Q: Suppose that there are three goods, good X, good Y, and good Z, and suppose that the consumer has…

A: Consumer Equilibrium is a point where a rational consumer is been able to choose a different set of…

Q: Consider three inputs of production: labour, physical capital and natural resources, and an economy…

A: Decreasing return to scale is when the increase in input will increase the output but the increase…

Q: Consider a variant of the benchmark model of adverse selection. The types of workers (θ) are…

A: Adverse selection refers to the situation where some participants in the market have less…

Q: Suppose you want to estimate the following model s Bat Biệt By 4 th where z is likely to be…

A: In the case of cross-sectional data, various parameters are observed at a particular point in time.…

Q: A Monopoly: Select one: O a. faces a downward sloping demand curve O b. None of the provided answers…

A: Monopoly is the market structure where there is only a single seller of the good in the market. This…

Q: the following  demand and cost functions  P is selling  andQ is quantity  in thousands P=30-2Q…

A: Given  Demand function: P=30-2Q        ....(1) Total cost function: TC=Q+5Q-30 ⇒ TC=6Q-30…

Q: Asim True increase production from 4 to 5 fire engines because the True or False: If alternatively…

A: There is an inverse relationship between the quantity demanded and its own price. A fall in price…

Q: Does it make sense that accounting for the negative externality results in a higher price? Explain…

A: Externalities are described as costs or advantages incurred by a producer but not covered by the…

Q: When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as…

A: In a monopoly market ,  The profit maximizing quantity is where MR = MC.  MR is the marginal revenue…

Q: 5.4 - Industry Adjustments to Increases in Demand 1. In a/an, industry, an increase in demand will…

A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…

Q: 8. Consider another Ricardian example, using standard Ricardian assumptions: Labor Hours per Bottle…

A: "Since you have posted a  question with multiple subparts, we will provide the solution to the first…

Q: Profit from perfect price discrimination (x) is $88200. (Enter your response as a whole number.)…

A: In case of perfect price discrimination, profit maximizing output occurs where price equals the…

Q: How does the globalized economy affect U.S. isolationism?

A: Isolationism is a policy that a country adopts in order to separate it from various…

Q: b. What other factors, beyond the incidence of the tax, might be relevant in assessing whether an…

A: A corporate tax is a profit-based tax on businesses. Taxes are due on a firms' income, calculated as…

Q: The production of plastic creates pollution, which, in sufficient quantities, can harm people's…

A: Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…

Q: The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a…

A: In a monopoly ,  The single price monopoly will produce where MR = MC.  And A price discriminating…

Q: To get a bank charter you need to demonstrate: (select all that apply)   A. That your community…

A: Bank charter is a charter that authorise the operation of a bank.

Q: Consider a hypothetical open economy. The following table presents data on the relationship between…

A: The amount of money a nation makes and spends as a result of its exports and imports is known as net…

Q: Discuss the circular flow of income in four sector economy.

A: An economic model that illustrates how money moves across the economy is the circular flow of…

Q: Demand curve that faces a monopolist: Select one: O a. Vertical O b. is identical to the marginal…

A: Demand curve is the downward sloping curve.  Demand curve is the graphical representation of demand…

Q: Instructions: Use the tools provided 'AD2' and 'AS2' to plot AD and AS after the increase in…

A: In the new classical economics, there is self correcting tendency in the economy. The equilibrium…

Q: a) How many pupils do Molly and Kathleen need to enroll in their class to break even? b) If Molly…

A: A market operates at its minimum cost point where the seller earns maximum profits. The cost can be…

Q: Suppose that the expected value of weekly profits for an ice cream shop, before paying the manager,…

A: Let we have a function f(x)The first order condition to find x value at which f(x) gets maximised…

Q: Consider the following problem: Demand: q = 100-p Retailer: marginal cost of selling r = 10 per…

A: Vertical integration is a term that describes the arrangement in which the supply chain of a…

Q: Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he…

A: Annuity payment is defined as the amount that is fixed in the amount of money that should be…

Q: The marginal expenditure of a monopsony buyer is as follows:   ME = P + (dP/dQ)Q   P = factor's…

A: A monopsony is a market structure, where only one buyer operates in the market. The buyer has the…

Q: 1A.2 In the isoquant/isocost diagram (Figure 1), suppose the firm is producing 1,000 units of output…

A: Isocost line provides different cost combinations of inputs during the production process. Isoquant…

Q: Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a…

A: Production Function shows the relationship between quantities of output produced and quantities of…

Q: Type out the correct answer and give proper explanation of each n every option step by step within…

A: Fixed exchange rate regime refers to the ties of a nation's currency to another currency’s exchange…

Q: Assume that Aruba and Iceland can switch between producing coolers and producing radios at a…

A: Production functions shows the relationship between the inputs used and output derived.  The…

Q: 3. Answer all parts (a)-(e) of this question. Consider the following production function: Q = 3K3…

A: MPL(Marginal product of labor) is the extra/additional output that the firm receives from employing…

Q: Question 13 Asset-price bubbles are unlikely to occur when credit is readily available are easily…

A: 13) Asset-price bubbles happen in specific markets of stock or real estate when the asset prices of…

Q: a) Choose a value for parameter "a" by yourself. Graphically illustrate the budget line of the…

A: a) To be able to show the budget line, we must identify its equation first. Budget line can be…