Q: Credit reports: A. Only report credit history under your current name B. Only report payments that…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: The trust game is a two player game with three stages, often used in economics exper- iments to…
A: (a) The following is a diagram of the extensive form of this game:
Q: Task 2: At a price of $4, is there a shortage or surplus of bananas? How many pounds? Task 3: At a…
A: Given information: Q = 25 - 2P ---------> Demand function for bananas Q = 3P --------------->…
Q: what are the three institution of government that protect individuals right in a market economy,…
A: Market Economy Supply and demand, multiple economic forces, govern the creation of goods and…
Q: the demand curve for a monopolist is 2p=100-q find total revenue average avenue and marginal…
A: Given the demand curve for a monopolist, 2p=100-q First we find the Total revenue (TR), TR=p×q
Q: What happens in the graph when the price of bottled water rises?
A: The demand curve does not shift when there is a change in quantity demanded because of the change in…
Q: 09.
A: Given, time available per day = 500 minutes Daily demand = 157 parts per day Set up time = 6 minutes…
Q: Provide an explanation an economist might give showing why each statement is true: - “People must…
A: The social science that examines the way in which people tend to choose among the available…
Q: Assume there are two periods: today (0) and tomorrow (1) and that, after tomorrow the world comes to…
A: Total benefits in each period : B(qt) = 10 q - 0.5q2 Cost of extraction = 2q Discount rate = 10%…
Q: WHAT IS REAL GDP AND NOMINAL GDP?
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: What are the 3 basic economic problems? Briefly
A: An economic problem is one that arises as a consequence of a scarcity of resources and requires…
Q: The U.S. and Mexico both produce vehicles and tons of plastic, which are sold for the same price in…
A: The opportunity cost is time spent contemplating and that cash to spend on something different. A…
Q: How is division of labor defined? Select the correct answer below: The average cost of producing…
A: Division of labour is the partition of a work interaction into various errands, with each…
Q: 18. Which is NOT an assumption of Neoclassical view (quantity theorem of money)? a. there is close…
A: Qunatity theory of money assumes that money supply influence economic activity in economy like…
Q: In a two-good, two country world, if one country has a comparative advantage in the production of…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: Q1 A firm is facing the following cost function C(Q) = AQ5/4 where A is a positive constant and Q is…
A: Profit maximization is the condition which is pursued by all firms and producers of goods and…
Q: X4
A: In a market, decreasing cost industry refers to the one that has the ability o reduce its average…
Q: Is the market for computer chips concentrated (i.e, dominated by relatively few producers)? How can…
A: When smaller firms account for a large percentage of the total market, market concentration is used.…
Q: 2. Which of the following variables is independent of the choice of base year? a. Nominal GDP b.…
A: Gross domestic product estimates the money-related worth of labor and products created inside a…
Q: G3
A: It is a bunch of principles and ideas which explains the functioning of the economy or various…
Q: Economists charged with the responsibility for performing a benefit–cost analysis encounter many…
A: Since the question you have posted consists of multiple parts, we will answer the first three parts…
Q: hy is there so much unemployment and underemployment in the developing world, especially in the…
A: Unemployment: It refers to the people who do not have jobs to do. Increase in an unemployment shows…
Q: A small business can produce a maximum of 43 of its product per month and sell them for $7 each. The…
A: Given information: A small business can produce a maximum of 43 units of its product per month, and…
Q: Someone has the following utility function U = X^2Y^2. a. Calculate the elasticity of demand for…
A: Elasticity of Demand is defined as the change in quantity demanded due to change a change in price.…
Q: Refer to Table 3-2. At a price of $750, the quantity of bicycles demanded per week will be A greater…
A: The demand curve for a product is downward sloping. A downward-sloping demand curve states the…
Q: Table 11 shows the hypothetical trade-off between different combinations of Stealth Bombers and B-1…
A: The cost that depicts the cost of the best next alternative that is being foregone is known as…
Q: France produces agricultural products and manufactured products, using both labour and capital. When…
A: International Trade: The term international trade refers to the trade spectrum in which a country is…
Q: Part IV: Study the supply schedule below and answer the questions that follow: Quantity Supplied 25…
A: Supply schedule shows the relationship between the price and quantity supplied of goods. There is…
Q: Perform the follow tasks and calculations as they pertain to the graph. a. Show points A and B on…
A: Law of demand states that other things being constant, with the increase in price of a commodity,…
Q: Question 7. Provide general formulations of the First and Second Welfare Theorems for an ex- change…
A: NOTE: “As per Bartleby policy, in case of multiple questions, the Seventh Question has been…
Q: Explain the law of diminishing returns.asap
A: In economics, various laws and theory are used to explains specific market activity. These laws arr…
Q: In the Neoclassical firms maximize profits when a. marginal efficiency of capital = interest rate b.…
A: The price of a factor of production is often explained by the marginal productivity theory of…
Q: Preliminary plans are under way for the construction of a new stadium for a major league baseball…
A: The break-even point is the point at which total cost and total revenue are equal. It shows the…
Q: With regards to economic growth, can Foreign Direct Investment (FDI) affect poverty? and how?
A: FDI straightforwardly advances economic development without anyone else as well as by implication…
Q: ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio…
A: NOTE: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: What is economic justice and should there be a Hippocratic Oath for economists?
A: GIVEN DATA Views on economic justice and whether should be there Hippocratic oath for economists
Q: Historically, which of the following was correct about banks in America ? A. most banks were small…
A: In America, the first bank was established in 1791. Even though it was a small bank, it was willing…
Q: c) Explain the dynamics underlying the differential equation dP dt where c and are constants. What…
A: In the given equation dPdt=cP(1-λP)where c and λ are constants The dynamics underlying it are as…
Q: Which of the following is not true of "models" in the study of economics? Select the correct answer…
A:
Q: f an increase in income leads to an increase in the demand for sushi, then sushi is a normal good. a…
A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…
Q: Explain the Prisoner’s Dilemma. Give some examples.
A: In economics, game theory refers to the concept to analyze the behavior of an imperfectly…
Q: Benefit–cost analysis requires the monetization of all relevant benefits and costs of a proposed…
A: Value of environmental good is done through various methods to learn the value of these goods from…
Q: The Norway spruce trees that are grown in Christmas tree farms are considered? A. Land B. Capital C.…
A: The measure that depicts resources or inputs that are being used in process of production for…
Q: LIST 1 LIST 2 1) Inventory Approach I) 1911 2) Restatement of quantity theory II) 1936 3) Classical…
A: Inventory approach was given in the year 1950 by Baumol and Tobin. 1) - III) The restatement of…
Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…
A: Interest rates affect the profitability of financial institutions. The financial institutions…
Q: SUBJECT: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the…
A: To find the annual worth we the compounding factors , (A/F , i , n ) And to make the calculations…
Q: ware developers. The benefits of this program 5, but also the goodwill generated by an increa d…
A: *Answer: . Given, Total benefit: B (Q) = 100Q -2Q^2 Total cost: C (Q) = 10Q Marginal benefit = dB…
Q: Who are the participants in the globalisation of the economy? 1 Transnational Financial and…
A: Economics is the study of how to distribute limited resources among people with limitless wants. Raw…
Q: 8
A: We know that Expansionary policy is employed with the aim of boosting aggregate demand when private…
Q: (Figure 1.7) This economy will be operating inefficiently at 6 Multiple Choice O O Point H only.…
A: The curve that depicts various combinations of two goods or services that could be produced using…
Step by step
Solved in 3 steps
- A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, however, faces an upward-sloped labor supply curve ofE = 20w - 120where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the firm faces an upward-sloped marginal cost of labor curve ofMCE = 6 + 0.1EEach hour of labor produces five units of output. How many workers should the firm hire each hour to maximize profits? What wage will the firm pay? What are the firm’s hourly profits?Suppose that the govern-ment imposes a producer tax. That is, the firm pays t units of consumption goods to thegovernment for each unit of output it produces. Determine the effect of this tax on the firm’sdemand for labour. (use calculus)A firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?
- The nation of Ectenia has 20 competitive appleorchards, all of which sell apples at the world priceof $2 per apple. The following equations describethe production function and the marginal product oflabor in each orchard:100100 2 ,2 5 25 2Q L LMPL Lwhere Q is the number of apples produced in a day,L is the number of workers, and MPL is the marginalproduct of labor.a. What is each orchard’s labor demand as a functionof the daily wage W? What is the market’s labordemand?b. Ectenia has 200 workers who supply their laborinelastically. Solve for the wage W. How manyworkers does each orchard hire? How much profitdoes each orchard owner make?c. Calculate what happens to the income of workersand orchard owners if the world price doubles to$4 per apple.d. Now suppose that the price is back at $2 perapple but a hurricane destroys half the orchards.Calculate how the hurricane affects the income ofeach worker and of each remaining orchard owner.What happens to the income of Ectenia as a whole?According to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuringplan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Priorto restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). Tohire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishidetermine that its marginal productivity of capital is 0.5 small cars per hour at its new targetedlevel of output and that capital is procured in a highly competitive market. The same studyindicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine therate at which Mitsubishi can rent capital and marginal productivity of labour at its new targetedlevel of output. To minimize costs…Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?
- The marginal and average total cost curves for barbers in an area are cosntant at $12.00/haircut. The daily demand curve for haircuts in the area is given by: P = 22 - 0.001Qd where P is the price in dollars per haircut and Qd is the daily quantity demanded in number of haircuts. Haircuts are provided in a perfectly competitive market and each barber can provide exactly 25 haircuts daily. Suppose that the government decides to limit the number of barbers to 320. Each year, barbers must obtain a government-issued license to cut hair. Based upon the previous information: a. What will be the long-run equilibrium price for a haircut given there are only 320 licensed barbers?b. How much economic profit will each licensed barber earn daily?Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
- The car manufacturing market consists of100 identical factories, each with a marginalcost curve represented by MC =120 + 20where Q represents the amount of carsoffered.a) Derive the industry supply curve for cars.b) If the demand for cars is represented byP=250- 4Q, how many cars are bought atequilibrium?c) Calculate the aggregate consumer andproducer surplus at market equilibrium.Consider a firm that is perfectly competitive in the market for inputs and outputs. Thefirm hires two types of workers: low-skill (high school graduates and high school dropouts) andhigh-skill (undergraduate and postgraduate degree) workers. The firm compensates high-skilledworkers at the rate wH and low-skill workers at the rate wL. It produces the output subject to aCobb-Douglas production technologyF(L,H) = (AH)α(L)β,where H - is the amount of high-skill hours, L - the amount of low-skill hours, and A - thetechnology parameter that augments the productivity of the high-skill labour. 4. In the short run, the firm cannot increase the amount of high-skill labour . Derive the1short-run demand for low-skill labour.5. What is the substitution effect of the wage increase in the short-run?6. Derive the long-run cost-minimizing demands for high- and low-skilled labour. Show thesolution to the cost-minimization problem on the graphTo maximize profits, a firm uses a fixed amount of capital and varying amounts of labour inits production processes to produce commodity Y. The output fetches Kshs 3 in the market andthe firm’s production is as summarized.Number of workers Output per hour0 01 92 173 244 305 356 397 428 44 Required;i.Calculate the marginal product of labour for this firm and the value of the marginal productof labour and the Marginal Revenueii.Suppose that the competitive wage for workers who can make Product Y is Ksh16 perhour. How many workers should this firm hire and why?