The law of diminishing marginal utility states that.. price must be lowered to induce firms to supply more of a product.   beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer.   it will take larger and larger amounts of resources beyond some point to produce successive units of a product.   total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed.

Q: 4The principle-agent model can explain non-profit maximization in firms. Which of the following…

A: When a party  involved in contracts and  negotiations have  less information  than the other…

Q: A company with two different plants manufactures guitars and banjos. Its production costs for each…

A: The cost of production of a firm involves costs of labor, raw materials, and capital. Out of the…

Q: Which point represents a situation where Canada is producing the same amount it would in autarky,…

A: Trade refers to the concept of exchanging goods and services in the market. The trade patterns imply…

Q: When there is a technological advance in the cheese industry, consumer surplus in that market will…

A: The difference between the consumer's actual price for the good and the utmost price they would be…

Q: Find the break-even price, the price below which it is optimal for Giovanni in the long run to exit…

A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…

Q: Md/P) = 2×Yb(r + πe)-a where 0 < b < 1 and 0 < a < 1. a) Use the real money demand above to…

A: Q E4. The Quantity Theory of Money (QTM) states that the money supply is directly proportional to…

Q: A consumer visiting an amusement park has a budget of $3600 and preferences u(x,y) = xy^2 over rides…

A: A utility function describes the willingness of a consumer to consume a particular consumption…

Q: QUESTION 19 If a company increases production from 1000 to 2000 units and total cost increase from…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of…

Q: Japan can make 12 widgets or 16 gadgets in one hour. Britain can make 3 widgets or 9 gadgets in one…

A: Opportunity cost is the cost of producing one good in terms of other good.  Opportunity cost shows…

Q: n this aggregate demand model, which one of the following statements correctly describes the economy…

A: In the below Aggregate Demand &amp; Aggregate Expenditure model, the economy will be in…

Q: A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it…

A: "A subsidy is the opposite of tax" because it gives some incentive to the firm or individual in form…

Q: Draw a demand, marginal revenue and marginal cost curve for a monopoly firm. Be sure to label axes…

A: Monopoly usually refers to a market situation in which there is only a single seller/firm that deals…

Q: Some of the negative consequences associated with the government regulation of monopolies or…

A: * ANSWER :-  From the given information the answer is given as below

Q: Suppose that for a particular firm the only variable input into the production process is labor and…

A: Costs of production, which comprise expenses of many kinds, are incurred during the production of…

Q: find the utility-maximizing consumption function subject to the budget constraint

A: For the utility maximising consumption bundle the basic principle is that we equate the rate at…

Q: QUESTION 46 Ahypothetical economy has private savings of $6017, domestic investments of $1303, and…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: If px = 5 and py 40 65 96 79 = 4, and I = = 120, what is Gina's utility under optimal consumption?

A: The goods that can be replaced with each other is known as PS(perfect substitute).The rise in price…

Q: 2. Excess capacity Osato Chemicals Inc. had sales of $1,720,000 last year on fixed assets of…

A: Fixed asset turnover ratio is the ratio which calculate or measure the efficiency of the assets…

Q: . Free international trade stimulates economic growth by…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: A salesperson introduces a mobile-data plan to Michael, which allows him to pay HK$200 per month and…

A: In Behavioral economics, willingness to pay is the consumer's maximum ability or willingness to pay…

Q: QUESTION 7 "Suppose the parameters of the IS curve are a=0,b=3/4, and r= 2%. Suppose further that…

A: Part 7 Option D is correct. Since, the government launches a fiscal stimulus measure of either…

Q: O False QUESTION 20 he beneficiary of a you those financially

A: A 12b-1 fee is a fee charged as operational fees for covering the marketing and Advertising cost. It…

Q: A businessman is considering building a 25-unit apartment in a place near a progressive commercial…

A: Given,  A 25-unit apartment buildingBecause of the location it is assumed to be occupied 90%Desired…

Q: a. When the owner hires 4 workers, the average product of labor is b. The marginal product of the…

A: Total product is the total production of goods and services done by the workers.  Average product of…

Q: Housing is supplied by a competitive building industry. Builders construct housing at different…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…

A: There is a significant relationship between the marginal cost curve and average cost curve as the…

Q: A bank may also borrow reserves from its Federal Reserve District Bank at its “discount window.” The…

A: Federal funds rate - Federal Funds Rate is the rate at which the financial institutions lend reserve…

Q: Find Alonso's Marshallian demands and indirect utility function gc (Pc, Pp, I) gc (Pc, Pp, I) gc…

A: Marshallian demands and indirect utility  both are function of prices (pc, pc) and income (I).

Q: Problem II Q1. If adopting a single price strategy (same price to all buyers), what price will be…

A: Monopoly is a type of market when there is just one manufacturer of the good and lots of customers.…

Q: Consider a 2-good, 2-agent pure exchange economy with complete markets (no externalities) and let…

A: A Walrasian equilibrium consists of a vector of prices and a consumption bundle for each agent,…

Q: If a country has a floating exchange rate will a rise in exchange rate be bad or good for exporters?

A: Exchange rate refers to the rate at which the currency of a country is exchanged for the currency of…

Q: QUESTION 26 Not all entrepreneurs have responsibilities toward their employees. True False QUESTION…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Why did bank failures increase, with a lag, after deposit insurance became available to banks? What…

A: When a bank is unable to meet its financial obligations to creditors and depositors, it fails. This…

Q: Economics is the study of scarcity. Public sector economics is the study of a. how to keep the…

A: In economics scarcity refers to the situation where the goods and services in the economy become…

Q: QUESTION 8 Consider a firm operating in a competitive market. The firm is producing 50 units of…

A: The economic profits = P x Q - ATC x Q The economic profits = P x 50 - 7 x 50  now the economic…

Q: Consider an economy where in the long run, the velocity of money is V = 74, real output is Y = 16,…

A: "Since you have posted a multiple questions, we will solve first question for you. If you want…

Q: se Graph B) A move from point H to point E could be caused by Graph B E G 3) F 4 1) a decrease in…

A: Demand curve is the graphical representation of demand schedule.  Supply curve is the graphical…

Q: Highlight any two key dangers of bid rigging for a national economy

A: Firms practices many things to raise their revenue. Merging, and bid rigging are some ways in which…

Q: Consider a pure exchange economy with complete markets so that the Welfare Theorems apply. Which 2…

A: Local non-satiation represents consumer preference which shows that there is always an alternative…

Q: Which of the following is NOT a potential harm of the Monopoly market structure? [Hint: Which is a…

A: Monopoly is a market arrangement when there is only one seller who has complete market control. The…

Q: Question 14 The diagram below shows the marginal cost of abatement for each of two firms, A and B.…

A: An E(externality )is a cost that is not borne by the person who generated it. The externality can be…

Q: The countries of Aptonville and Boxtown each produce two goods: Trucks and Motorbikes. The table…

A: In economics, the opportunity cost is the worth of what you have to give up in order to choose…

Q: Explain and Compare the following terms: Absolute advantage and standard of living.

A: Absolute advantage is the capacity of a person, business, area, or nation to create more of an item…

Q: Consider the cashflow (n = 10 years, MARR = e = 14%) Cash Flow A Investment Revenues P 180,000 P…

A: Particular Amount Investment 180000 Revenue 350000 Expenses 400000/year for 3 years and then…

Q: D Question 13 When price is below average variable cost, a firm in a competitive market will…

A: For a competitive firm, price on which it has to sell its output is given.

Q: PROBLEM (4) You have the Cobb-Douglas utility function u(x, y) = xy over apples (x) and plums (y)…

A: To construct a set of feasible set of bundle we need to keep both the budget income and weight…

Q: QUESTION 24 A definite term employment contract can only be terminated by mutual agreement if the…

A: Part 24 The statement is true. An employment contract of definite nature can only be terminated when…

Q: please use the DDB method  A firm is trying to decide whether to keep an item of construction…

A:

Q: Assuming no transaction costs, which legal rule best harnesses private information to deal with…

A: Externalities occur when the production or consumption of products and services enforces costs or…

Q: Table 4-18 Product Camera Legal services Books Quantity Price Quantity $28,885 2013 $11,790 $11,200…

A: Real GDP is the product of base year price and current year quantity.  So,  Real GDP = Current year…