Use one new firm diagram with ATC, MC, and AVC to show when a decrease in demand will not lead a firm to shut down. Be sure to clearly label the diagram, relevant points and areas. In the long run, what is the effect of the decrease in demand on the equilibrium price and quantity? Use new market and firm diagrams to defend your answer.
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- Changes in macroeconomic indicators can often be of relevance to business decision-making. For instance, changes in macroeconomic performance reflected in indicators can impact things such as firms profit forecasts, expected sales growth, expansion plans, etc.Assume you are employed as a business analyst with the large Australian based mining company. Identify and discuss how each of thefollowing macroeconomic issues may be relevant to the firm:a) A world-wide economic slow-down.b) Appreciation of the Australian dollar relative to other major currencies.c) The government abolishes subsidies to the mining industry.1-1 Consider the following model. AD : Y = 620 + 10 M/P AS :Y = Y' + (P – P^e ) where Y' = 750, P^e= 38, and M = 600 (a) Explain why an increase in the money supply (M) increases output. (b) Graph AD and AS curves. (c) Compute the equilibrium level of price. (d) Suppose that the money supply increases to 750. What is the short-run equilibrium level of output and the price level? (e) What is the long-run price level with M = 900? 1-2. Suppose that the government increases expenditures by $100×(1 + 0.02) billion while increasing taxes by $100x(1– 0.02) billion. Suppose that the MPC is 0.7 × (1 + 0.02) and that there is no crowding out effect. What is the combined effects of these changes? Why is the combined change not zero?11 Suppose that a researcher, by using a sample of transactions of residential houses, wants to estimate how the price of the houses is affected by the presence of an elevator in the building. To this end, he regresses the price of the house in thousands euro, price, on the dummy elevator indicating the presence of the elevator (dummy equal to 1) or not (dummy equal to 0): on ta price; = a0 +a1 elevator; + u; o max.: The OLS estimates are (standard errors in round brackets below the corresponding coefficient): rassegna = 53.802 + 73.068 elevator; (19.256) price; R2 = 0.036 (10.735) A 95% confidence interval for the coefficient of elevator, assuming the 3 OLS assumptions hold, would be: O (a) [52.03; 94.11] O (b) [49.34; 96.79] O (c) [55.46; 90.67] O (d) [55.46; 96.79] Precedente Successivo
- Please please help me asnswer it correctly and fastly The global oil market has been affected in the recent years by many factors that induces the global price to fall. This consequence is vital for the budget of the oil dependent countries. After the huge decrease on oil price in 2016, many traders and analysts believe that oil markets are still not immune to many problems and the oil price will tend to fall again. The main factor and problems toward a fall of the oil price started in 2015 but considering that people and oil companies do not tend to react immediately to the change of oil price, the total consumption and production of oil did not get any surprised changes in the short- run. The main factor that caused the drop on the oil price is the OPEC failure. The member countries of OPEC did not agree to stabilize the oil markets, since the organization decided against cutting production at a 2014 meeting in Vienna. It is estimated that if OPEC does not cut production, the…Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for unleaded gasoline from sales during the past eight months. Month Gasoline Demanded (gallons) Mar 900 Given that the forecast for March is 920. Apr 755 May 650 Jun 550 Jul 625 Aug 730 Sept 820 Oct 1 100 a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25. b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45. c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them. d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)A Supply Manager controls Inventories by answering two critical questions "How much to order" and "When to order".? In this context, with the help of Graphs describe briefly the two methods(namely Q & P systems) under the Replenishment System of Inventory control. ?