What are economies of scale? Give an example. What are the diseconomies of scale? Give an example.

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A: Percentage change = [[New value - Initial value] / Initial value] * 100

Q: Market failures Multiple Choice O O O о are only a concern when they result in prices that are too…

A: Market failure is a situation when the market is fail to allocate resources efficiently.  There are…

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A: Demand for a country's currency is derived in following cases: When there is a demand for the export…

Q: Suppose that the probability of low demand is 0.75.   (a) What is the maximum Expected Monetary…

A: The law of demand is a basic rule of economics that states that at a higher price consumers will…

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A: Utility function: u(x1, x2) = x1 + x2 Marginal Rate of substitution = dudx1dudx2= 12x11 Price of…

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A: Consumer surplus is the price that a consumer pays for a product or service less than the price that…

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A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

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A: A financial asset is a liquid asset with value derived from a legal claim to ownership or a…

Q: F7

A: We know that Final goods are goods that do not need any further processing. Final goods are produced…

Q: How does an increase in wealth effect the price level and real GDP?

A: The wealth impact is the change in expenditure that occurs as one's perceived wealth changes. The…

Q: In 2012 the nominal value for household spending on food and beverages was equal to $17593m and in…

A: Here since we have data only for the household consumption for food and beverages. Hence it would be…

Q: is meant by the current account multiplier in relation to a fiscal propriate equation

A: *Answer:  Economists and politicians have long been fascinated by the link among both fiscal policy…

Q: Required: c) True or False: In consistency between monetary and fiscal policies causes the…

A: Currency crisis causes fall in the economic activities significantly. The currency crisis is…

Q: 4. Using the Production Possibilities Curve below answer questions a, b and c 50 48 40 Consumption…

A: With the same resource we can produce a lot of different goods. This is because the resources are…

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A: GIVEN DATA  The maximum amount of high quality car is 10000.  The maximum amount of low quality car…

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: H9

A: It is a bunch of principles and ideas which explains the functioning of the economy or various…

Q: 5. The price of trade Suppose that France and Switzerland both produce jeans and olives. France's…

A: The traditional trade principle still holds true today: each country should specialise in what it…

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: Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000…

A: since you have asked multiple questions and according to policy we can solve only 1 question and for…

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A: We have given the short-run production and output schedule of a competitive firm that produces…

Q: Suppose a firm uses two inputs: capital, K, and labour, L. The profit function is π(K, L, p, w, r)…

A: To find the rate of change in the maximum profit we differentiate the maximum profit function with…

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A: Given  Sales Y, measured in $1000 per month Advertising X, measured in $1000 per month Equation…

Q: TIMBER CRUNCH The demand and the supply of timber for construction in Australia are given by QD…

A: We are given:  Demand function: Qd = 120 - 20 P  Supply function: Qs = 40 P

Q: What can you infer from the 2018 Global Cities Index and the 2018 Global Cities Outlook?

A: 2018 Global Cities Index  The Global Cities Index assesses cities' global engagement in five areas:…

Q: (1) Use the graph to answer the question. The graph illustrates that A-the firm's fixed costs are…

A: Question 1:  Answer :  B-the firm is producing fewer units at every cost level  Explanation:…

Q: 4. Inflation and interest rates The following table shows the average nominal interest rates on…

A: Nominal interest rate alludes to the interest rate prior to considering expansion. Nominal can…

Q: You have the following annual figures for the New Zealand economy.             Investment…

A: Increase of investment is includes the increment of plants in equipment's in the economy and…

Q: For the next four questions, assume the economy can be described by the following set of equations:…

A: Gross Domestic Product is the total output that an economy produces or the total income that the…

Q: 13

A: Predatory Pricing is a strategy in which the prices are deliberately reduced on temporary basis, so…

Q: PRICE (Dollars per hat) 100 90 80 70 60 50 40 30 20 10 0 0 Supply Demand 50 100 150 200 250 300 350…

A: The equilibrium price and equilibrium quantity is determined by the market Demand and Supply. Using…

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A: Economic problems arise due to presence of scarcity or in other words, the resources are limited but…

Q: Problem 1 View Help Mario consumes only cheese and crackers. a. Could cheese and crackers both be…

A: 1. When a person's income rises, their consumption of an inferior good decreases. In spite of having…

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A: Given information: There are two countries, i.e., Bellissima and Felicidad. And both produces two…

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: What are two things that meet the criteria of the functions of mc ot necessarily be what you would…

A: *Answer:  *2 Double Coincidence of Wants   This is a scenario where a buyer wants to purchase a…

Q: Post-Quiz Q: Assume that the demand curve D(p) given below is the market demand for widgets: Q =…

A: Consumer surplus is that area which are lies below the demand curve and above the market equilibrium…

Q: ) True or False: Speculators have got substantial influence on second-generation

A: Excessive borrowing of government or consistent deficit in the balance of payments leads to the…

Q: (ii) Explain the difference between a closed economy fiscal multiplier and an open economy fiscal…

A: Open economy refers to the type of economy that keeps interactions with the outside economies in the…

Q: The reserve requirement ratio is nowadays less used as a monetary tool O True O False

A: Monetary policy: It refers to the policy which is used by the government to correct the various…

Q: The table below presents the production possibilities schedules for the cities of Venice and…

A: Opportunity cost is the cost that is given in order to obtain more of a desired good. When a choice…

Q: 8

A: Microeconomics is that branch of economics where we study the economic problem and issue at small…

Q: Benefit–cost analysis requires the monetization of all relevant benefits and costs of a proposed…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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Q: Apply your understanding of the previous key terms by completing the following scenario with the…

A: Economics is the study of allocating the scarce resources in the most efficient way. The main tools…

Q: 5. Correcting for negative externalities - Regulation versus tradable permits Imagine the government…

A: Government-issued permits known as "tradable pollution permits" allow businesses to produce up to a…

Q: 2. The following table gives information about the quantity of glasses of lemonade sold on sunny and…

A:

Q: asks the question "Consumer Lifetime Value (CLV) does it affect the value we put on consumption ?"

A: Customer lifetime value (CLV) is the sum of a customer's value to a company over the course of their…

Q: You have the following annual figures for the New Zealand economy. Investment…

A: The Saving  = Private Saving +Public Saving. The current accounts of BOP includes the net export,…

Q: Which of the following is NOT an example of scarcity? Select the correct answer below: Due to a lack…

A: The term "scarcity" is being used when there is a limit to the amount of resources (natural, labour,…