Use the equal marginal principle in production to explain the effects of these government policies: a. reduce wages of its workers b. subsidize the cost of capital used by the firm on the firm’s choice of input combinatio
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Use the equal marginal principle in production to explain the effects of these government policies:
a. reduce wages of its workers
b. subsidize the cost of capital used by the firm
on the firm’s choice of input combination.
Step by step
Solved in 3 steps with 2 images
- True or false in most short, run production processes, producers, have an economic incentiveto substitute, less productive inputs in place of more productive inputs, in order to increaseefficiency.What is supply? Decision making behavior of sellers and shows the quantity that sellers are willing and able to sell at different prices. All of the above production possibility curve Decision making behavior of consumers and shows the quantity that consumers are willing and able to buy at different prices.In terms of Adam Smith’s concept of the invisible hand, an efficient overallallocation of resources is likely to result from:(2)(1) The behaviour of public-spirited people, who consider the benefits theiractions will have on others;(2) The behaviour of self-interested individuals striving to maximise their ownwell-being;(3) The regulation of markets by economic planners;(4) The operation of command rather than market economies.
- Factors of production are A) the mathematical calculations firms make in determining their optimal production levels. B) social and political conditions that affect production. C) the physical relationships between economic inputs and outputs. D) inputs into the production process.a point inside a societys production possibilties curve represents? a. an output combination that satisfies the needs of the population b. an unattainable combination of outputs c. an underutilization of productive resources d. a technically superior output combinationa. Compute the Pareto efficient provision of effort. b. Derive the decentralized provision of effort.
- Which is not a factor of production? Money Land Labor Capital 2 A point outside the production possibilities curve is attainable, but there is not full employment attainable, but there is not optimal allocation unattainable because the economy is inefficient unattainable because of limited resources 3. A basic characteristic of a command system is that wages paid to labor are higher government owns most economic resources free markets are never permitted in a command economy government planners play a limited role in deciding what goods will be producedShow all work and EVER STEP for solving the problem. DO NOT SKIP ANY STEPS. That is the only way I can know how you solved the problem. Directions: Given the consumption matrix C and the demand matrix d, find the production vector x that meets the consumption matrix C. Hint: Recall Leontief Input Output Models.The table below is an illustration of Pareto efficiency criterion after the implementation of a state income policy in some selected Ministries . Before policy. After policy Ministry A. 400 800 Ministry B. 200 200 Ministry C . 300 300 Total. 900 1300 There is a trade-off between equity and efficiency in a perfectly competitive market system. Analyse with the aid of a diagram how efficiency will not be compromised in government’s welfare program
- The law if diminishing marginal returns is the rate at which one input maybe substituted for another input in the production process? True FalseThe table below is an illustration of Pareto efficiency criterion after the implementation of a state income policy in some selected Ministries . Before policy. After policy Ministry A. 400 800 Ministry B. 200 200 Ministry C . 300 300 Total. 900 1300 Requiredi) a) Is there a Pareto improvement? Why? b) With reference to the table, explain Pareto optimality.c) Analyse the welfare condition of the Ministries after the income policy. ii) There is a trade-off between equity and efficiency in a perfectly competitive market system.Analyse with the aid of a diagram how efficiency will not be compromised in government’s welfare program.What does the research and experimentation tax credit do? It offers a tax benefit to individuals who work in research and development. It offers firms a tax reduction depending on how much research and development they do. Generates significant tax revenue for the federal government. It offers firms a tax reduction depending on hiring of scientific and technical personnel.