The firm tries to maximize the production of P = 12MC. The company reserves a budget of Rp 500 to buy inputs M and C, where the price of M is Rp 40 and the price of C is Rp 5. What is the optimum production value (P)? elect one: O a. 3000
Q: 6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of…
A: Correct answer is option D
Q: tly is holding checkable deposits that equal $2,344, w alued at $2,022 and reserves worth $322. A…
A: The reserve ratio is certain part of deposit which is kept in liquid form by the bank. Rise in the…
Q: MP and MRP and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer…
A: Marginal Product refers to the additional output generated due to employment of an additional input…
Q: Dual Mandate: Suppose the central bank has a dual mandate. This implies the following IS-MP-AS…
A: The production and distribution of products and services in a society are impacted by the economy,…
Q: In the market for textbooks, when the price goes down, this will cause an increase in the: Group of…
A: The market will reach equilibrium when there is no shortage or no surplus. At this point, quantity…
Q: Can a firm earn an economic loss and an accounting profit at the same time?
A: The measure that depicts distribution of income to owner in a profitable process of production in…
Q: Of the following, which is a way that government can create a healthy climate for economic growth?…
A: Economic growth refers to sustainable increase in real GDP in the economy.
Q: When workers do not notice inflation has taken place they do not realize that their real wage has…
A: Misperception theory is based on idea that workers do not have right information about wage and…
Q: 2. Graphically show the impact of inflation on the money markets under following cases. (a) The…
A: An increase in the inflation rate increases the prices of goods and services in the economy. This…
Q: Which of the following statements are TRUE? (a) In a situation of a sovereign debt crisis…
A: The total of all obligations incurred by a nation's government is referred to as its national debt.…
Q: 3. EFC Corporation, which manufactures goods at three locations at D, E, F. The firm distributes the…
A: Transportation problems are a subset of Linear Programming Problems (LPPs) in which commodities are…
Q: Finance What happens to the value of the dollar if the bank of japan increase its money supply and…
A: When an open economy changes its money supply and interest rate, it will have a significant impact…
Q: What are the factors that will affect the total revenue?justify your answer
A: Total revenue is the total amount of money a company brings in from selling its goods and services.…
Q: kmarks Window Help 0 Using the graph below, if a price is set at $4, a upward pressure on the price.…
A: Equilibrium is achieved at a point where demand curve intersects supply curve. At this point,…
Q: In the model of the goods market presented in Chapter 3, which of the following variables is…
A: An exogeneous or external variable is one that exists independently of the economic model. Exogenous…
Q: 4. Qd=a-bP = 6-2P ..(1) (2) Qs = c+dP=2 + 4P ........ Qd = Qs = Q Calculate equilibrium price (P)…
A: Equilibrium in the market occurs at the intersection of demand and supply curves.
Q: explain how income tax affects (i) household savings (ii) business investment
A: A tax placed on people or organisations in relation to their income or profits is known as an income…
Q: The Boeing Commercial Airline Group (BCAG) recently recorded orders for more than 15,000 jetliners…
A: Production Function The connection between the amounts of productive inputs (such as labor and…
Q: Could you please answer this statement from the perspective of 'it depends': Production surpluses…
A: In a market, the problem of shortage or surplus of output occurs when there is a mismatch between…
Q: A price elasticity of demand equal to 5 means
A: The formula for elasticity is given by: ep = [dq/dp] x [p/q] If ep > 1 then elastic demand If…
Q: The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and…
A: The gross domestic product implicit price deflator, often known as the GDP deflator, is a metric…
Q: Why have intellectual property rights (IPRs) become a major issue in recent rounds of international…
A: The rights that people are granted over their creative works are known as intellectual property…
Q: Use the table to answer the questions: Country A $100 10% Country B $2000 Initial Demand Deposits…
A: Money supply is the stock of money in economy. it includes cash as well as non cash assets.…
Q: Discuss the concept of stationarity. What is the difference between strong and weak stationarity?…
A: Stationarity is a process of Time series and is used in regression to analyze the stationarity of…
Q: The table above shows the total cost function for a typical firm producing hats in a perfectly…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Mustapha maintains a monopoly in the holographic TV market because of its patent, but it is about to…
A: The monopoly refers to the market where only single seller exists in the market. The profit is…
Q: Explain cost and revenue synergy by taking an example of a recent M&A that happened across the…
A: Cost synergy is the anticipated reduction in operational expenses following the merging of two…
Q: The table below gives part of the supply schedule for personal computers in the United States.…
A: Price elasticity of supply is a proportion of the connection between an adjustment of the quantity…
Q: Which of the following is not a factor that could cause a shift in the demand curve for a certain…
A: Demand curve shows different levels of quantity demanded at different price levels.
Q: Explain concisely whether the statement is true or false: The GDP of a country does provide an…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: As the MPC rises, the multiplier falls does not change increases falls by .05…
A: MPC is the marginal propensity to consume which is the percentage change in income spent on…
Q: An airline is selling tickets for a flight from London to Frankfurt. The price of an economy class…
A: An airline comes under the oligopoly market structure where tough competition exists in the market.…
Q: Question 7 State five criticisms of a monopoly.
A: A monopoly is such a market structure in which there is only one seller and many buyers.
Q: (Problems 27 to 29) Use the benefit-cost method to determine which of the alternative bridges below…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: A small print shop is investing in new printing equipment that will cost $42,000. They estimate that…
A: Given information Initial investment=42000 Annual revenue=14000 Salvage value=3000 Tax rate=27%…
Q: what is demand in economics
A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…
Q: True or False: Suppose you are advising the Egg Farmers of Canada on changes in the egg market.…
A: Given information: The current price of eggs is $3 per dozen, and the quantity demanded is 2.5…
Q: Three firms are producing a good and are competing in prices: consumers buy from the firm that has…
A: The question is based on the Bertrand model of Oligopoly.
Q: Vidhi is investing in some rental property in Collegeville and is investigating her income from the…
A: Future value is the sum that a current investment will reach after some time if it is put in an…
Q: E3
A: Producers surplus is the difference between the actual price of the good and the minimum price for…
Q: An engineer who is about to retire has accumulated $50,000 in a savings account that pays 6% per…
A: Lets note down the information given to us as follows:- P = 50,000 i = 6% n = 10
Q: suppose a firm has the following demand and cost functions A. Calculate the profit function B. Find…
A: Profit is the difference between total revenue and total cost
Q: Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, identify…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: At its meeting ending on 2 February 2022, The Bank of England (BOE) Monetary Policy Committee (MPC)…
A: Monetary policy Monetary policy refers to the policy of the central bank of the nation, by which…
Q: Initial Investment Estimated Life Salvage Value Annual Income Annual Expense $50,000 15 $15,000…
A: Given value: Initial Investment for model 334 A = $80000 Estimated life = 30 years Salvage value =…
Q: The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price…
A: Sticky price theory: This theory states that price adjusts slowly or remains unchanged in response…
Q: True or false? The GDP deflator measures prices of a group of products called the "market basket"…
A: Nations desire to understand the degree to which prices of various commodities rise and fall within…
Q: Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that…
A: Monopoly is the seller which is the only seller in the market where there are many buyers and due to…
Q: Desired national saving: s= $20 billion+ ($400 billion) Desired investment: /"$40 billion ($400…
A: The measure that depicts final value of goods and services within an economy during given time span…
Q: of each year. If the interest rate is 5 percent, determine the present value of the stream of:…
A: Accounting profit does not account for implicit cost while the economic profit account for the…
Step by step
Solved in 2 steps
- A firm face the production function:Q=120L+200K-L2-2K2It can buy L at N5 a unit and K at N8 a unit with a budget of N70. Use any method ofyour choice to find the maximum output the firm can produce.Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of shoes is $15 and the cost for can of beer is $25. 1. Construct Andre’s budget constraint (place) beers on the y-axis 2. Suppose Andre’s salary rises by 25%. Also suppose that the price of shoes and beers each rise by 40%. Construct Andre’s new budget constraint. What is the difference between the new and old budget constraints?Consider a firm for which production depends on two normal inputs, labor and capital, with prices w and r, respectively. Initially the firm faces market prices of w = 6 and r = 4. These prices then shift to w = 4 and r = 2.a. In which direction will the substitution effect change the firm’s employment and capital s tock?b. In which direction will the scale effect change the firm’s employment and capital stock?c. Can we say conclusively whether the firm will use more or less labor? More or less c apital?
- Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of shoes is $15 and the cost for can of beer is $25. i. Construct Andre’s budget constraint (place) beers on the y-axis.Penelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of applesconsumed and b is the amount of bananas consumed. He has $100 income. Theprice of apple is $0.5 per lb. Price of banana’s though increases with its purchase.Specifically, buying, b pounds of bananas will cost Pedro b2.a. What is Penelope optimal consumption?b. Now, he suddenly acquires an extra $100 income. How this will changehis allocation?Set all variables to their baseline values.9) At what level of output is average cost a minimum?10) What is average cost (AC) at that output?11) What is marginal cost (MC) at that output? BASELINE COSTS TC (BASE) $175,113 AC (BASE) $43.78 MC (BASE) $64.12 NEW COSTS TC (NEW) $175,113 AC (NEW) $43.78 MC (NEW) $64.12 POLICY VARIABLES Output 4,000 Fixed cost 25,000 Tax per unit $0.00 AC(NEW)-MC(NEW) -$20.34
- Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L - 20L2 + 600K – 10K2 The cost of labor is $20 and the cost of capital is $30. You have a budget of $550. How many units of capital(K) should you rent/buy? Enter as a value.Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining16 hours, for each hour he chooses to work he gets paid 2 pizzas. Garfield must pay 6 pizzas intaxes but receives dividends equivalent to 6 pizzas.1. Draw Garfield’s budget constraint (put consumption on the vertical axis and leisure of thehorizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.b. Now suppose that Garfield chooses to work 10 hours per day. Find how many hoursof leisure and how many pizzas he will consume.c. Using your answer from b, show Garfield’s optimal point on the budget line and drawthe indifference curve passing from that point.4. Suppose that Garfield’s wage falls to 1 pizza per hour. Draw Garfield’s new budgetconstraint. Make sure to show the value of any intercept that has changed.5. Suppose that in response, Garfield decides to work for 6 hours per day. How much leisurewill he take, and how much pizza will he consume?6. Use an…
- Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining16 hours, for each hour he chooses to work he gets paid 2 pizzas. Garfield must pay 6 pizzas intaxes but receives dividends equivalent to 6 pizzas.1. Draw Garfield’s budget constraint (put consumption on the vertical axis and leisure of thehorizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.b. Now suppose that Garfield chooses to work 10 hours per day. Find how many hoursof leisure and how many pizzas he will consume.c. Using your answer from b, show Garfield’s optimal point on the budget line and drawthe indifference curve passing from that point.4. Suppose that Garfield’s wage falls to 1 pizza per hour. Draw Garfield’s new budgetconstraint. Make sure to show the value of any intercept that has changed.5. Suppose that in response, Garfield decides to work for 6 hours per day. How much leisurewill he take, and how much pizza will he consume?6. Use an…Suppose that aKC = 5, capital used to produce one yard of cloth. aLC = 8, labor used to produce one yard of cloth aKF = 4. capital used to produce one calorie of food aLF = 6. labor used to produce one calorie of food. Which of the following is True? a. Cloth is labor intensive. b. Food is labor intensive. c. Both food and cloth are labor intensive. d. Both food and cloth are capital intensive.Suppose a student’s entire weekly pocket money (income) is spent on cafeteria’s fast food and hut’s meal. Draw his (weakly) budget line if he has total amount of Rs. 1500 per week, the price of fast food is Rs. 150 per unit and the price of meal is Rs. 100 per unit. Draw the new budget lines: a) if his pocket money/income falls to Rs. 1000 per week