What is the law of diminishing returns and what does it imply about the shape of the firm’s average variable cost and marginal cost curves.

Q: 3. How much will you have in 40 years if you save $3,000 each year and your account earns 8% interes...

A: The information given to us is:- Saving per year = $3000 Tenure = 40 years  Interest rate per year =...

Q: Technological changes in telecommunications have: Select the correct option and explain why its corr...

A: An increase in efficiency of process or product that would result in an increase in the level of out...

Q: 5. Provide rationale for deductibles and copayments. What is the effect of deductibles and copayment...

A: For taking some service for example if an individual wanted to take some insurance then they need to...

Q: Q)Suppose you earned $80,000 in 2018 and the CPI value for the year was 244. Calculate your 2018 inc...

A: Consumer price index measures the change in the general price level for selected basket of goods and...

Q: Who is the 'father of economics'?

A: To find : Who is father of economics. 

Q: What is the current inflation rate as measured by the Consumer Price Index? You can use either the F...

A: The inflation rate is defined as the percentage change in Consumer Price Index for a particular time...

Q: If the federal government is running a surplus, Question 15 options: taxes must fall ...

A: Budget surplus It refers to a situation in which the expenditure of government is less than its reve...

Q: The aggregate production curve is a 45 degree line. [True or False] – Explain Why

A: Aggregate Production Curve : The Aggregate Production Curve or the Aggregate Production function is ...

Q: The marginal revenue for a perfectly competitive firm is equal to the market price. Why is this not ...

A: In a perfectly competitive market, there are a large number of buyers and a large number of sellers,...

Q: The following graph shows the labor market for research assistants in the fictional country of Acade...

A: Labour economics seeks to comprehend the operation and dynamics of wage labour markets. Labor is a c...

Q: Define the term microeconomics. Please explain in detail.

A: Microeconomics is the study of what is likely to happen when people make decisions as a result of ch...

Q: A social cost is applied to the monopolist market structure. Why does this occur? If the gains produ...

A: Social cost is defined as the sum total of both private costs and any form of external cost which ar...

Q: QUESTION 3: Refer to the graph below and answers the following questions. All Underling work must be...

A: C.  With an effective price celing at $2, total consumer surplus is -CS=[(6-2)(40-0)]+[12(8-6)(40-0)...

Q: A consumer has income of $3,000. Wine costs $3 per glass, and cheese costs $6. What is the slope of ...

A: Budget line: M = Px . X + Py . Y Slope : (-) Price ofwine Price of cheese

Q: Public Goods. Suppose a neighborhood in Segovia’s central business area is deciding how many founta...

A: Public goods are such goods that are non-rival and non-excludable in nature.

Q: Exercise 3 Consider the MPL is currently given by MPL=30/L. The supply of labor in the country is L=...

A:  Frictional unemployment: An individual is supposed to be frictional unemployed when a person m...

Q: a. Write a rule for the amount she would receive (revenue), R dollars, from selling s stockings and ...

A: Given  is the information : =>Cost of  making and delivering 3 stockings =$125 => Cost of maki...

Q: Q3: If you have the following data: price (8,4,5,6,7) and quantity (5,4,3,2,1) and the desired hypoc...

A: Here, the given data provides information about the price, quantity and desired hypocrisy of the peo...

Q: Explain an inverted yield curve using the pure expectations theory.

A: Inverted yelid curve As long-term yields go under short-term yields, resulting in an inverted curve....

Q: Supply & Demand $34 18 13 Price per unit

A: Consumer surplus is the area above the price line and under the demand curve.  The price is set at $...

Q: 39. At the point of satiety, marginal utility is

A: To find : What is marginal utility at point of satiety. 

Q: When the interest rate increases, the opportunity cost of holding money a. decreases, so the quantit...

A: In the mentioned question, we have been asked about the relationship between interest rate and the o...

Q: Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each c...

A: Tammy wants to maximize profit given by,   π(c)=100c-2c-c2F.O.C100-2-2c=0c*=49 The social optimum is...

Q: From your perspective explain Globalization and its impact on countries. Identify at least two pros ...

A: The exchange of capital, goods, and services across international borders or territories because goo...

Q: Which of the following bodies finalizes the Five Year Plan Proposals?

A: To find : Which finalize 5 year plan. 

Q: In less than 8 sentences, look at the economies of the rice market, you can provide a hypothetical p...

A: The supply and demand of a product can be affected by the price, at a different level of prices, sup...

Q: %3D b. After trading with Home, P; = $1 and Py = $2. Calculate VMPL, using P = $2. Put your answers ...

A: Value of Marginal Product  = Marginal Product of labor* Price of the product.

Q: A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of...

A: Since you have posted a question with multiple sub parts, we will solve first three sub-parts for yo...

Q: Consider an economy with 2 goods and 30 agents. There are 10 agents y3 each with the indirect utilit...

A: U×PX,Yy,M= maxUx,yPxx+Pyy≤M=Ux*,y*=UDxPx,Py,M,DyPx,Py,M  

Q: Darnell and Janet are debating the use of coupons by grocery stores. Darnell says, "The use of coupo...

A: Coupons are indeed most effective to price discrimination. Companies set a high price of the product...

Q: Given that the revenue function, R (x) = 26x - 2x and the cost function, C(x) = 6x + 20. Find %3D (i...

A: R(x)= 26x-2x2 C(x)= 6x+20

Q: Shunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into...

A: Production Function is defined as the maximum output that can be produced with a given set of inputs...

Q: 2. Neneh rents a house for which she pays the landlord $25,000 per year. The house can be purchased ...

A: The information given is:- Rent paid by neneh = $25,000 Cost of the house = $250,000 Also the intere...

Q: Next week is Bob’s birthday and he will receive RM100.00 for his present. He saw a pair of jeans at ...

A: Here, it is given that Bob has RM100.00 from which he can either biy a pair of jeans or all other th...

Q: 13. Consider a model with four lags: Yt = a, + 8,zt + 8,2t-1 – 822t-2 + 832t-3 + 847t-4 + Uz Now, le...

A:

Q: 27. A firm earns economic profit when total profit exceeds

A: To find : When do firm earn profit. 

Q: Is giveln by . A) Mr. Lou's utility pints) to derive his general demand function as in class. That i...

A:

Q: Consider a competitive market, dispersed among hundreds of companies. The Total Cost Curve of these ...

A: Cost of a firm in a competitive market: TC= 5000+2q2-400q (differentiating the TC wrt q, we get the ...

Q: A monopoly, unlike a perfectly competitive firm, has some market power. Thus, it can raise its price...

A: There are certain factors that helps a firm to maintain its market power. It may include economies o...

Q: Please explain why the marginal cost decreases first and then increases in your own words. Please pr...

A: Marginal cost is the cost of producing an additional unit of goods. It is a U-shaped curve. Initiall...

Q: An airport is located next to a banana farm. The airport can fly X planes per day, but the burning f...

A: In question it is stated that the airline creates pollution and the banana industry is affected by p...

Q: Consider a set of 1000 companies operating in a competitive market. The supply curve for this market...

A: According to the question, There are 1000 companies in a market. The supply curve for this market i...

Q: Alice has preferences described by utility function u(x1, x2)3(x1+2*x2)^0.5. Suppose that p1=4, p2=5...

A: The utility function is: U(x1,x2)= (x1+2*x2)0.5 Calculating the MRS: MRS= MUx1/MUx2 MUx1= 0.5(x1+2*x...

Q: Consider a second-hand car market with two kinds of cars, type A which are completely reliable, and ...

A: In the second-hand car market, both buyers and sellers have different information regarding the cond...

Q: Describe the original rationale and purpose of the creation of a “minimum wage. When did this happen...

A: The original rationale and purpose of the creation of a “minimum wage The minimum wage was establish...

Q: Which nation has comparative advantage in producing good X? Why? Explain why these nations can benef...

A: Comparative advantage refers to the advantage of producing a good at a lower opportunity cost than t...

Q: 3. In cases below, answer questions below. 3.a. People’s preference for saving increased (so people ...

A: 3. a. For any given rate of interest now people will be saving more. Savings is also the supply for ...

Q: Is the perfectly competitive market model realistic? If not, why do we want to study the perfectly c...

A: Perfect competition is a market model that assumes a large number of firms produce identical goods t...

Q: Consider any market that has a demand curve given by: Qd = 125 - 0.4P. Being the total quantity dema...

A: Oligopoly refers to the situation in the market where only a few sellers exist in the market. The ma...

Q: Consider the money supply Ms=mxB , m=r+1 cr+rr Assume that the demand for real money is given by the...

A: Since the question you have posted consists of multiple parts, we will answer the first two parts fo...