The profit maximizing condition for a purely competitive firm is when... Price < average total costs Price = average total costs Price > average total costs Price elasticity of demand is positive. X ↑

Q: A consumer has preferences over 3 goods represented by the utility function u(x1, x2,…

A: u = (x1x2 )0.5 - 2-x3  MUx1 = 0.5 (x2 / x1 )0.5  MUx2 = 0.5 (x1 / x2 )0.5  MUx3 = Ln2 It is given…

Q: Market demand is given as Qd = 190-2P. Market supply is given as Qs = P + 10. What would result if…

A: Surplus is also referred to as excess supply. The quantity supplied in this case exceeds the…

Q: The net interest margin of a bank is a function of A What they pay for wages and the revenue B Their…

A: The net earning margin refers to the difference between the interest which is paid and interest…

Q: Which of the following items would have a low price elasticity?   A Yacht   Gasoline   Dinner at an…

A: Elasticity refers to the responsiveness of quantity demanded to changes in price level.

Q: carefully explain whats happening to the market for a regular cup of coffee. indicate the impact if…

A: The demand and supply curves also depend on the prices of related goods. Price of related implies…

Q: Question!: (XP ((₁-x)p₁ in = hilp₁u) h₂(pin) = ((1-4) p.) ² u и apz V[p₁w) = α² (1-α)²- a w Pia…

A: Equivalent variation is the concept used to adjust the consumer's income in such a way that he…

Q: Where do monopsonists maximize profit Select one: None of the options are correct By hiring large…

A: When there is just one buyer and many sellers, it is called monopsony. There is only one employer…

Q: Unanticipated inflation erodes the purchasing power of money. ___________ is hurt least by…

A: Unanticipated inflation erodes the purchasing power of money. ___________ is hurt least by…

Q: Which is a feature of the Classical theory? Select one: Oa. Government intervention is necessary, to…

A: Classical theory of unemployment argues that government should not make intervention in the economic…

Q: 10. Dependent & independent variables; positive & inverse relationships: Consider the curve labelled…

A: Equilibrium refers to the point where demand curve intersect supply Curve

Q: When a radiologist quits her job at a hospital and starts looking for a better job in another…

A: When a person is unemployed, it means that they are capable of working, actively looking for job,…

Q: Another term for deflation is Select the correct answer below: inverse inflation O negative…

A: Deflation refers to the general decrease in prices of goods and services.

Q: ou need P 4,000 per year for four years to go to college. Your father invested P5,000 in 7%  account…

A: investment is the process in which money is spent in the present to receive a greater sum of money…

Q: Jordan usually pays a price between $14 and $20 per kilogram of sugar. His monthly total expenditure…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: financed, and it faces a 40% tax rate. Assume that the firm has no amortization expense. The…

A: earnings before interest and taxes is a measure of a firm's profit that includes all incomes and…

Q: a. If the price of pencil is $3, how many pencils does the person buy? How much consumer surplus…

A: Consumer surplus is defined as the difference between the maximum price the consumer is willing to…

Q: 2. True or False? When we measure GDP, it's always better to measure aggregate expenditure rather…

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

Q: A stock you are evaluating is expected to experience supernormal growth in dividends of 12 percent…

A: A stock's fair value can be calculated by regressing all expected dividends to the present value at…

Q: A consumer has Marshallian demand w +V/PIPZ) \P1+√√P1P2 P2 + √P1P2 Find the income and substitution…

A: Given  x1p1,p2w=wp1+p1p2      .....(1) And x2p1,p2w=wp2+p1p2       ...(2) Slutsky equation is given…

Q: Mention and explain three social consequences produced by economic crises. What is the…

A: People who migrate for economic reasons do so in order to benefit from the more favourable economic…

Q: reland and Belgium have very similar trading patterns. Both trades considerably more with the United…

A: The Gravity model of international trade states that trade is proportional to the product of GDP of…

Q: Ricardo's theory of trade is based on_ ratio). (A: productivity of labor; B: opportunity cost; C:…

A: David Ricardo theory of international trade is landmark and it has refined the theory of Adam Smith.…

Q: The price of gas increased during the past months. a) Explain how the substitution effect influences…

A: The substitution arises when the consumer responds to an increase in the price of one item by…

Q: Russia trades chocolate with France, where it is a staple. The government of Russia places a price…

A: Price floor is the price set by the government which is the minimum price that should be charged…

Q: Fannie Mae, Freddie Mac, and similar government-sponsored enterprises obtain their funds from Group…

A: Fannie Mae, Freddie Mac, and similar government-sponsored enterprises main purpose is to support the…

Q: A U.S. Congressperson wants to reduce the U.S. trade deficit by imposing tariffs on imports. Use a…

A: The IS-LM model is the Keynesian macroeconomic model which states the relationship between market…

Q: TRUE OR FALSE.  A commodity “x” which has a price elasticity coefficient of - 1.5 is more price…

A: When talking about the coefficient of price elasticity of demand, it can be said that the value of…

Q: Amir is a risk averse decision-maker with von Neumann-Morgenstern utility u(x) that is strictly…

A: As per the given information  A utility function is strictly increasing and continuous. That means…

Q: Of the influences on expenditure plans, which ones remain constant along the aggregate demand curve?…

A: Aggregate demand curve refers to the curve that depicts the relationship between sum of all the…

Q: Give four (4) economic activities that generate both positive and negative externalities?

A: We know that An externality is a positive or negative side effect of production or consumption in…

Q: 10. Dependent & independent variables; positive & inverse relationships: Consider the curve labelled…

A: We know that Variable means anything that can be measured. An Independent variable is also known as…

Q: Carefully explain what is happening in the following market. Indicate the impact if any on demand,…

A: 1. Here, it is given that the University mandates the purchase of principles of economics by all the…

Q: given goods A and B and a budget, if the relative price of A were to increase, the budget line…

A:

Q: For an open economy, the equation Y=C+I+G+ NX is an identity. If we define national saving, S, as…

A: For an economy,  The GDP is measured by the equation:- Y = C + I + G + NX.    Where Y = Income  C =…

Q: Lw 830 $20 $10 e poby . $10 D $15 990 316 Refer to the above diagram wherein the numerical data show…

A: Game theory is concerned with the choice of an optimal strategy in conflict situations.

Q: A fully anticipated increase in the inflation rate can lead to Group of answer choices higher market…

A: A situation of an increase in the prices of different goods and services in a particular region is…

Q: The table below gives the number of labour needed to produce one unit of Cloth and Machine in…

A: Absolute advantage refers to the the ability of the country to produce more output than the other…

Q: A consumer has utility u(x₁, x₂) = x₁ + x1x2. Suppose that, because of a shortage of good 1, the…

A: Utility function  : u(x1 , x2 ) = x1 + x1x2  Price of good 1 : P1  , Price of good 2 : P2  Income =…

Q: 4. Opportunity cost refers to the value of an alternative given up to acquire another.

A: Dear Student, as you have posted multiple questions but as per the guidelines and policies of…

Q: Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the…

A: a) Two factors occur when the price of haggis rises that will influence how many (units) of haggis…

Q: 1. What makes economic globalization distinct from internalization? Justify. 2. What are the 2 most…

A: "Since you have asked multiple question,we will solve first question for you.If you want  specific…

Q: The inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q.…

A: Here, inverted demand function and cost function of a monopolist are given as: P=130-Q C(Q)=10+5Q

Q: Refer to the information provided in Table 1 below. What is the unemployment rate?

A: What is unemployment rate?

Q: hand written plzz asap

A: When all resources are effectively utilised, an economy produces at its natural level. It is…

Q: Most markets for energy have particularities due to physical, geological, geographical, and…

A: Energy economics as a distinct subject of economics wouldn't be necessary if the idealized model of…

Q: 2. Given a Q = 100-2P and Qs = 6P-20 a. Compute the equilibrium price, p*, and equilibrium quantity,…

A: Given  Demand function QD=100-2P              ......(1) Supply function QS=6P-20…

Q: Consider the figure to the right. What change in the position of the aggregate demand curve could…

A: Aggregate demand refers to total demand for all the goods and services in an economy during the…

Q: Which of the following is NOT an example of a firm benefiting from economies of scope? Kleenex…

A: Economies of Scale: Economies of scale refer to the business situation when a firm produces huge…

Q: Why should the owner of the crude oil resource be willing to supply it in exactly the right amount?…

A: The link between the price level and overall economic production is aggregate supply. The aggregate…

Q: A consumer has utility u(x₁, x₂) = x₁ + x1x2. Suppose that, because of a shortage of good 1, the…

A: Utility function  : u(x1 , x2 ) = x1 + x1x2  Price of good 1 : P1  , Price of good 2 : P2  Income =…