When is the law of diminishing marginal returns relevant? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an a when a firm can change all of its inputs b when a firm can only change one of its inputs U when a firm is advertising d when a firm is not using all of its inputs

Q: find the utility-maximizing consumption function subject to the budget constraint

A: For the utility maximising consumption bundle the basic principle is that we equate the rate at…

Q: Suppose for a single firm that P = 15 TC = 3Q + 2Q2 (a) What is the profit-maximizing quantity?…

A: Profit maximization in economics happens when the difference between total revenue (TR) and total…

Q: Consider perfect competition and monopolistic competition. In which market structure(s) will we see…

A: Perfectly competitive market is characterized by the presence of homogeneous product. while the…

Q: The government wishes for Alonso to buy fewer sport cars because they create too much pollution. The…

A: Utility function shows the level of satisfaction derived from the consumption of goods.  Budget…

Q: Consider a general two-stage game of complete but imperfect information. How do we denote the…

A: A multistage game is a game type that is played simultaneously one after the other. Imperfect…

Q: Draw a diagram for a perfectly competitive industry with firms earning normal profits in the long…

A: Perfectly competitive market is the one where there is homogeneous product prevailing in the market…

Q: A farmer can either invest in irrigation for their farm or not.  There's a 30% chance that they will…

A: The game in an extensive form refers to the specification of a game in the study of game that allows…

Q: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to…

A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…

Q: The benefits received principle of taxation asserts that Select one: a. Society at large should pay…

A: Tax refers is a compulsory financial charge levied by the government. It is used to fund government…

Q: What will happen if a monopoly raises its price?     a Quantity demanded will increase. b Quantity…

A: In a monopoly market, there is only one single firm that supplies output for a large number of…

Q: Adam buys luxury wristwatches in Greece for $70.00 and sells them in Germany for $120.00. This act…

A: Marketing is the use of ideas which are used for selling a product or making people aware of the…

Q: Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly…

A: Disclaimer- “Since you have asked multiple question, we will solve the three question for you as per…

Q: It is assumed that everything else stays constant.  The economy has Consumption $90, Investment…

A: Aggregate Demand has four components, namely,  Private consumption expenditure( C)  Private…

Q: Which of the following is least likely to be a cause of the fluctuation of exchange rates?…

A: Exchange rate represents the price of a currency in terms of another currency. The value of exchange…

Q: If a country has a floating exchange rate will a rise in exchange rate be bad or good for exporters?

A: Exchange rate refers to the rate at which the currency of a country is exchanged for the currency of…

Q: In this table, the average cost of producing 300 units of output is: a b IPCSB.13 с d Selected…

A: In economics, average cost or unit cost is equivalent to total cost (TC) divided by the quantity of…

Q: The following graph shows a monopoly. Which coordinate area represents the deadweight- loss…

A: A monopoly is a market structure where there is only one firm in the market for a good or service.…

Q: Calculate the sensitivity with respect to PW to +50% alters in (a) Initial investment (ii) Net…

A: Given information Initial investment=$95000 Annual benefit=$20000 Salvage value=$10000 MARR=12%…

Q: the beginning of the year, the economy has public debt (or national debt) of $470 million. This…

A: Public saving = tax revenue - government outlay Since, government outlays are the expenditure made…

Q: What is meant by "internalizing" an externality? How can a negative externality be internalized?

A: Internalising an externality means when there is a loss in welfare accompanied with externality then…

Q: How does health disparities affect the labor market and money market

A: Health disparities are the prevalence of inequities in the burden of disease, harm, abuse, as well…

Q: .In 2019, competition authorities threw out a merger of Asda and Sainsbury’s. What type of growth…

A: 8) Mergers could be of various types i.e. vertical or horizontal. It could be across industries or…

Q: Which of the following policies will shift the IS curve to the right a) An increase in the…

A: The IS curve depicts all income (Y) and real interest rate (r) pairings that result in an…

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A: The European union nations follow Euro as there single currency and have monetary policy…

Q: Suppose AD1 and SRAS1 indicate initial conditions in the goods and services market in Figure 14-1.…

A: Monetary Policy: Monetary policy refers to the policy instruments with the central bank of a country…

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Q: (1) (2) (3) (4) y = 1+C (expenditure), y = S+C (use of income). So in equilibrium I must equal S:…

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Q: Suppose households supply 500 billion hours of labor per year and have a tax elasticity of supply of…

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Q: What is the short-run shutdown price, the price below which the firm chooses to shut down…

A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…

Q: QUESTION 36 The severance pay for each of the first five years of service shall be calculated as:…

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Q: The above graph represents a market for bananas. What does area E represent? surplus transferred…

A: The price a person is willing to pay for a good and the market price for that good are separated by…

Q: The elasticity of demand for energy- ‘Electricity, and Gas’- is relatively price  inelastic in the…

A: Elasticity of demand refers to the responsiveness of consumers to the change in the market price of…

Q: Assume a firm has the following production function: q(L, K) = L¹1/2. K¹/2 Additionally, assume…

A: We have to satisfy first order condition for profit maximization

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Q: 3.2 Simple Utility Maximization Your preferences are represented by the utility function U =…

A: Utility maximization means that the consumer likes to attain maximum satisfaction from their…

Q: You used the wrong elacticity of labor supply.  It is .16 not 0.1

A: The labour supply elasticity is the percentage change in how much labour is supplied as a result of…

Q: In the given question What will be the Net indirect taxes if the subsidies are 610 and Indirect…

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A: The U.S. central bank implements its monetary policy through the Federal Open Market Committee…

Q: the price at which a 91-day Treasury Bill is sold falls, which of the following statements are true?…

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Q: Which of the following is NOT a potential harm of the Monopoly market structure? [Hint: Which is a…

A: Monopoly is a market arrangement when there is only one seller who has complete market control. The…

Q: 10. Which of the following statements is true? a. A decline in the general price level will result…

A: 10. In economics, LM curve refers to the curve that shows the condition of money market. LM curve is…

Q: An investment has the following structure: You are required to spend $2,327.41 today, and 20 years…

A: Internal rate of return IRR is the discount rate that makes the net present value of a cash flow…

Q: Consider the following dynamic game. There are two players (P1, P2). Player 2 tries to rob Player 1.…

A: In the given scenario, there are two players P-1 and P-2 where first P-1 decides whether to give the…

Q: Suppose there is a remote stretch of highway along which two restaurants, Last Chance Café and…

A: Nash Equilibrium The Nash equilibrium is a steady state in game theory where no player can earn from…

Q: Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs…

A: In the short run, a firm should shut down production if revenue is lower than variable costs. It…

Q: Assume that all participants in the following have an interest rate or discount rate of 10%. A firm…

A: The present value of the future cash flows that will result from investing equity is added up in…

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A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: Consider a Solow economy with a production function F (K, L) = Kª L¹-ª, where a = = 0.2. The labor…

A: Solow model is a growth model in which the major drivers of growth are savings and investment. It…

Q: Consider the above table. What is the marginal product of the 2nd worker? O 18 O 20 O 40 O 22

A: The total product of labour is the sum of the prices of all the commodities and services generated…