Without the use of a graph, explain why the perfectly competitive outcome is consistent with welfare maximization in the long run but not necessarily in the short run.

Q: As the MPC rises, the multiplier     falls     does not change     increases     falls by .05…

A: MPC is the marginal propensity to consume which is the percentage change in income spent on…

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Profit is determined by deducting the costs from the income. While working out the monetary profit,…

Q: 2) Exchange rates and interest rates are connected through the parity conditions. Let the New…

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

Q: In dynamic pricing environment where prices change regularly the decision to open or close different…

A: Dynamic pricing:- Other names for dynamic pricing include price increase and time-based costing. By…

Q: Choose the correct statement: Select one: a.There is a negative relationship between the price level…

A: Aggregate demand refers to the ability of the people to pay for the consumption of goods and…

Q: Could you please answer this statement from the perspective of 'it depends': Production surpluses…

A: In a market, the problem of shortage or surplus of output occurs when there is a mismatch between…

Q: Q7. The production function is y=L¹/aK¹/B The price of the output is $100, w = $15, and r= $12. a.…

A: Optimal input extents are utilized when an extra dollar spent on any input yields a similar…

Q: relation to your selected corporate business/organisation, select the position of the purchasing and…

A: All the activities of the business depend upon the Supply function of the management. Rae material…

Q: Explanation of Solution The computation of the proportion of portfolio must be allocated towards the…

A: Perpetuity:- A perpetuity is a type of investment which yields forever. In the financial world,…

Q: Al's production function for deer is f(x1,x2) = (2x1 + x2)^1/2, where x1 is the amount of plastic…

A: Production function for deer is f(x1,x2) = (2x1 + x2)1/2 where; x1 = the amount of plastic used x2 =…

Q: Evaluate the following statement in no more than 300 words: “Infant-industry protection can be…

A: Alexander Hamilton introduced the idea of the infant industry in 1791 when he argued for…

Q: True or False: Suppose you are advising the Egg Farmers of Canada on changes in the egg market.…

A: Given information: The current price of eggs is $3 per dozen, and the quantity demanded is 2.5…

Q: A deadweight loss occurs because a tax on a good (A) increases the equilibrium price in the market.…

A: The value of trades that are not completed because of taxes is known as deadweight loss. The…

Q: 1. Other things equal, what is the likely impact of a U.S. trade deficit on 1. the current account?…

A: An import/export deficit is a sum by which the expense of a nation's imports surpasses its…

Q: Fill in the blank by typing 'increase', 'decrease', 'no change', or 'uncertain'. To sure to type the…

A: In the free market, the equilibrium price and quantity is dtermined by the forces of the demand and…

Q: In this question, you'll explore the effect of a plentiful crop in Pennsylvania on the price of…

A: The measure that depicts various quantities of goods being demanded at various price levels is known…

Q: Discuss the concept of stationarity. What is the difference between strong and weak stationarity?…

A: Stationarity is a process of Time series and is used in regression to analyze the stationarity of…

Q: The Boeing Commercial Airline Group (BCAG) recently recorded orders for more than 15,000 jetliners…

A: The marginal product of an info, say labor, is characterized as the additional result that outcomes…

Q: indicate whether you think the statement is true or false and explain why 1. Capital and energy are…

A: There is a greater effect for ecology on economics because natural resources are essential inputs…

Q: Explain the economic development of the GDP?

A: Economic growth, when accounting for inflation, is the increase or improvement in the market value…

Q: John got a deal to lend $60,000 today and in return, he will receive twenty-five annual payments of…

A: An ordinary annuity is a point at which an instalment is made toward the finish of a period. An…

Q: Given the following parameters: Perfect Competition in Labour Market Perfect Competition in Output…

A: Perfect competition happens when all organizations sell indistinguishable items, market share…

Q: In the model of the goods market presented in Chapter 3, which of the following variables is…

A: An exogeneous or external variable is one that exists independently of the economic model. Exogenous…

Q: In a perfectly competitive market, suppose that there are 1280 firms. Market demand is given by…

A: In perfect competition, there are many firms producing identical goods. The firms are price takers

Q: Assume that you are a rational person and that you visit a grocery store to buy bananas. Use the…

A: The rational consumer refers to the consumer who wants to maximize utility out of money spent on the…

Q: E3

A: Producers surplus is the difference between the actual price of the good and the minimum price for…

Q: A multiproduct monopolist that sells two goods sells one of them at a price below its marginal cost.…

A: A monopoly is a market where a single seller sells the product and the product does not have any…

Q: The total depreciation of an equipment after its 16 years of useful life is P448,475. Using the…

A: Given  The total depreciation of equipment after 16 years  is P448,475 Useful one of equipment =16…

Q: Question 7 State five criticisms of a monopoly.

A: A monopoly is such a market structure in which there is only one seller and many buyers.

Q: Which economic school relies most heavily on "sticky prices" to explain the effects of Aggregate…

A: The father of contemporary macroeconomics is the British economist John Maynard Keynes, who founded…

Q: 3. In the upcoming year, the income from your current job will be $50,000. There is a 0.5 chance…

A: Under several scenarios, the lottery winner would receive an erratic income. The person would make…

Q: 4. (If P = 2 and Y= 1000, then which of the following pairs of values are possible? A. M = $500, V =…

A: From the quantity theory of money  The equation of exchange is MV= PY  Where M is money supply, V is…

Q: Fill in the blank with the corresponding options. Be sure to type them exactly as they are written…

A: In a free market, equilibrim price and quantity is determined by the forces of the demand and supply…

Q: explain how income tax affects (i) household savings (ii) business investment

A: A tax placed on people or organisations in relation to their income or profits is known as an income…

Q: A two-firm cartel producing industrial diamonds faces the following demand function: Q=120-10P The…

A: Cartel refers to the mutual agreement of the firm of the Oliugopoly market. In which firm fixes…

Q: Question 12 Under which of the following two scenarios would demand be more elastic? Explain. (a)…

A: Demand elasticity is the degree to which demand changes in response to changes in other economic…

Q: Gringotts Wizarding Bank has the following deposits and assets: Checkable deposits held by…

A: According to the question, it is given : Bank's deposits and assets.  Total Deposits refers to all…

Q: Answer questions 5-7 based on the following information: Suppose that the production function for…

A: Given:F(L,K)=L14K12w=2r=4 FC= $100

Q: 8. Difference in Differences Question: In the context of a Difference-in-Differences estimation,…

A: 8. Estimating the impacts of a rapid shift in the economic climate, a policy, or general treatment…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Describe the effect of the business cycle on the inflation rate and the unemployment rate.

A: Inflation is the rate at which the worth of a currency is falling and, subsequently, the general…

Q: 2 Environmental Kuznets Curves (EKC) Using cross-sectional data across all countries in 2022,…

A:

Q: Variable demand is a challenge to service providers since services are perishable. With the…

A: Demand: It refers to the goods and services that have been demanded by the people. The increase in…

Q: Initial Investment Estimated Life Salvage Value Annual Income Annual Expense $50,000 15 $15,000…

A: Given value: Initial Investment for model 334 A = $80000 Estimated life = 30 years Salvage value =…

Q: 1. Measuring employment, unemployment, and labor force participation Consider a small economy…

A: People who are working or has a job are considered employed. People who are actively looking for a…

Q: Why have intellectual property rights (IPRs) become a major issue in recent rounds of international…

A: The rights that people are granted over their creative works are known as intellectual property…

Q: MP and MRP and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer…

A: Given information Selling price=$2.50 W=$12.50 Given table

Q: Are carbon prices working? Economists say that raising the cost of burning coal, oil, and gas is a…

A: The cost of missed opportunities is the benefit that might have been obtained from an alternative…

Q: magine that the United States produces only three goods: apples, bananas, and carrots. The…

A: GDP is production of the goods and services during an accounting year. Real GDP makes adjustments…

Q: Which of the following is not a factor that could cause a shift in the demand curve for a certain…

A: Demand curve shows different levels of quantity demanded at different price levels.