Give an example of a positive externality and an example of a negative externality.

Q: Demand function is given by P = 50 + 6Q and supply function is given by  P =  100 + Q Calculate equi...

A: Under equilibrium  Demand = Supply 

Q: Macroeconomics Question No.2 Suppose the consumption function is given by C = 100 + 0.8YD and that I...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: The following events occur one at a time: (i) The price of crude oil rises. (ii) The price of a car ...

A: The demand changes when there is change in factors other than its own price. The quantity demanded c...

Q: In what ways could the Ritz-Carlton monitor its success in achieving quality?

A: The Ritz-Carlton can monitor quality in the short run by utilizing customer feedback. It can use que...

Q: You are the chief economic adviser in a small open economy with a fixed exchange-rate system. The go...

A: Exchange rate refers to the amount of domestic currency that required to purchase one unit of foreig...

Q: a. On a graph with the probability of injury on the x-axis and the wage level on the y-axis plot two...

A: (a) In the above-mentioned graph, we can clearly see that from the point of intersection of both the...

Q: Question attached

A: The unemployment rate is the number of unemployed people in the country being divided by the total n...

Q: An online commercial directory service must decidebetween composing the ads for its clients inhouseo...

A: Given values:        Total cost = $42000 Salvage value = $2000              Wages = $55000 per year ...

Q: In the classical model, an increase in aggregate demand will cause: OPTIONS: a decrease in price lev...

A: In the classical model, it is assumed that the economy is always at the full employment level and an...

Q: With the aid of illustration (s) explain in detail why countries push for specialization in internat...

A: Countries gain benefit when they specialize in producing goods where they have a comparative advanta...

Q: What role does weak financial regulation and supervision play in causing financial crises?

A: A financial crisis is a situation where some financial assets of a nation suddenly lose a huge part ...

Q: Assume that aggregate output is below the natural ratelevel. What would an activist policy recommend...

A: The activist policies are based on the idea that the government should take action, and adopt such p...

Q: What is exclusive dealing? How might it reduce competition and when might it be acceptable?

A: Exclusive dealing means that when producer gives authority to only one dealer to sell their goods. I...

Q: If Demand function is P = 150 - 2Qd and supply function is P = 10 + Qs Calculate equilibrium price a...

A: Demand function P = 150 - 2Qd Supply function P = 10 + Qs  Equilibrium occurs when Demand = Supply 

Q: A firm has a production function of ?(?,?) = ??.???.? a) Explain the concept of returns to scale. Do...

A: The production function reflects the positive relationship between inputs (land and labor) and outpu...

Q: 1. Using demand and supply analysis, illustrate how each of the following scenarios would affect the...

A: Equilibrium Price and quantity in the market is determined by the intersection of market demand curv...

Q: A can of soda costs $1.25 in the United States and25 pesos in Mexico. What is the peso–dollar exchan...

A: The central bank has a tool of Monetary Policy (MP) through which it regulates the money supply, inf...

Q: The economy is in a recession and the government wants to increase output. If the multiplier equals ...

A: Recession is the slowdown in the economy where there is a slowdown in the output of the economy, inc...

Q: Approximately, what is the value of (F) if A=300, n=5 years, and i= 5.5% per year?

A: F = A x F/A(i%, n) F = 300 x F/A(5.5%, 5) F = 300 x 5.5811** F = 1674.33 **F/A(5.5%, 5) = [(1.055)5 ...

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in ...

A: Incremental cost of production is the increase in total cost due to increase in the production level...

Q: Hello, can you help by giving me an example to illustrate each of the following: (a) constant opport...

A: Opportunity cost is the foregone benefit that can be bought by choosing another alternative. In simp...

Q: In the labor market, what causes a movement along the demand curve? What causes a shift in the deman...

A: Answer: Introduction: Labour demand curve: Labour is demanded by firms to produce goods and services...

Q: What is the difference between trade deficits and balance of trade?

A: Trade refers to transferring services and goods from one person/entity/country to another in exchang...

Q: Draw a demand curve and describe theexternal factors that determine demand.

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at ...

Q: Define the law of supply and the law of demand. Discuss how market supply differs from individual su...

A: Law of demand and law of supply are the two most basic and fundamental laws in economics.

Q: The Odessa Independent Phone Company (OIPC) is currently engaged in a rate case that will set rates ...

A: (a) Rate of return on assets: The demand function   P=3514-0.08Q Substituting the value of price giv...

Q: What are the advantages of internal economies of scale ? Explain thembriefly.

A: Both internal economies of scale and external economies of scale help to reduce the production cost ...

Q: Which statement is not true with respect to estimating the economic impacts of proposed engineering ...

A: The production is the process of transforming the raw materials into the final goods and services in...

Q: A man is buying a new eco-friendly electric riding mower. There will be no maintenance cost during t...

A: (a) The present value: Present value = maintanance cost ×present value factor =∑MC×1(1+r)nFor the fi...

Q: Given the cost information in the previous question and an industry demand function of Q = 2400 - 5p...

A:  Demand function of Q = 2400 - 5p  

Q: A company is considering building a bridge across ariver. The bridge would cost $2 million to build ...

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

Q: Define market value. How do you differentiate it fromintrinsic value?

A: Market value is the value of a good which is determined by market forces ie demand and supply. It is...

Q: а 1. The marginal revenue function for a manufacturer's product is of the form where e9+b a and b ar...

A: The change in total revenue (TR) with more unit of output in termed as marginal revenue (MR).

Q: Goat meat producers are struggling to keep up with demand as consumers turn to alternative meats, an...

A: When there is a change in any non-price determinant of demand/supply, it causes the demand/supply to...

Q: Why do oligopolies exist? List five or six oligopolists whose products you own or regularly purchase...

A: Oligopoly means few sellers. Oligopoly is a market situation in which a few firms produce homogenous...

Q: If the price of rubber falls, how will that affect the demand for rubber tires?  a) demand will not ...

A: Solution: If the price of rubber falls, how will that affect the demand for rubber tires?  a) demand...

Q: Assume that you want to decide whether Country A or Country B to live You have only information abou...

A: People's perspective to live in one country depends on social and economic conditions. If we take in...

Q: Suppose the U.S. government simultaneously legalized drugs and launched a highly successful antidrug...

A: As per ‘law of demand’ other factors remain constant(cetris peribus) with the increase(↑) in price(P...

Q: Your parents make 20 equal annual deposits of $2,000 each into a bank account earning 3% interest pe...

A: Interest compounding occurs within one time frame, and can also be measured on a yearly basis. Futur...

Q: You are the chief economic adviser in a small open economy with a fixed exchange-rate system. The go...

A: If the economy is an open economy with a system of the fixed exchange rate and government want to in...

Q: Judy likes brussels sprouts(x1)and ketchup(x2).Her utility function is given by  U(x1,x2) = 2logx1+l...

A: The utility function is given as follows: U(X1, X2)=2 log(X1) + log(X2)=log(X12) + log(X2)= log(X12 ...

Q: Deliberate on the transmission of monetary policy?

A: The monetary policy of the economy is the policy of the central bank regarding the money supply of t...

Q: Tick the correct cause of the shift in demand, then draw either an inward shift or an outward shift ...

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

Q: What are demographics? Why are they important tointernational marketers?

A: Population in the economy can be a boon or a bane for the economic system and its operations. The po...

Q: Explain the central banking function " management of gold and foreign exchange reserves"?

A: Central banks hold gold included in the foreign exchange reserves. They are highly liquid and have l...

Q: Find total revenue if the price function is  P=70Q-500

A: Price function is: P=70Q−500 Where, P is the price of a good Q is quantity of a good

Q: Colombia and Brazil are two of the major suppliers of coffee globally, each accounting for the produ...

A: Demand Function  P = 720 - 20Q Marginal Revenue Function MR = 720 - 40Q Columbia  Marginal Cost  MC ...

Q: According to the quantity theory of money, money growth and inflation are a. positively correlated...

A: Quantity theory states that M x V = P x Y So, % change in M + % change in V = % change in P (Inflati...

Q: H negative demand shoek will lead to a depnieiation of the domestie carreney (Hint : diraw'a pietwa)

A: A negative demand shock refers to the variables or outside factors that reduces the demand. Such eve...

Q: Carrot Computers and its competitors purchase touch screens for their tablet computers from several ...

A: Part (a)The Herfindahl index is a measure of the size of firms in relation to the industry and an in...

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.