Q: if u.s. quotas on imported goods were eliminated: a) the supply of sugar in the U.S. would shift to…
A: We have show that Quotas are set so that the prices of imported goods increase for consumers. So…
Q: Annie runs a fitness center. On December 31, 2021, she bought an existing business with exercise…
A: Gross investment is defined as a company's total expenditure or investment in acquiring…
Q: (a) Draw the feasible (budget) set of the consumer who buys this bundle ticket and the budget set of…
A: Problem (3) A consumer maximizes individual utility subject to a budget constraint. A utility…
Q: After careful consideration of the single factor identified in the model above, the researchers were…
A: The regression model analyzes how the independent variable is explained by the independent variable.…
Q: A decrease in price will increase consumer welfare or consumer surplus due to O a Old consumers…
A: The difference between the consumer's actual price for the good and the utmost price they would be…
Q: QUESTION 27 Figure 2-10 Tashwashers 45 40 35 30 25 20 15 10 3 D 13 30 45 60 75 48 bash Refer to…
A: The production possibility frontier shows the maximum amount of goods and services that can be…
Q: QUESTION 8 Consider a firm operating in a competitive market. The firm is producing 50 units of…
A: The economic profits = P x Q - ATC x Q The economic profits = P x 50 - 7 x 50 now the economic…
Q: Economics is the study of scarcity. Public sector economics is the study of a. how to keep the…
A: In economics scarcity refers to the situation where the goods and services in the economy become…
Q: The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table…
A: Comparative Advantage: A country have comparative advantage in producing a good implies that the…
Q: Question 44 Under a fixed exchange rate, suppose that the economy initially stays at the long-run…
A: Since you have asked multiple questions, we are answering only the first question. To get solutions…
Q: Calculate Rian's marginal revenue and marginal cost for the first seven rompers they produce, and…
A: First of all, we want to know the term marginal revenue and marginal cost. Marginal revenue is…
Q: Consider an aggregate production function of the form Y= K⅓(AL)⅔ Assume that the labor force is a…
A: GDP per capita is calculated by dividing the total gross value added by all producers who are…
Q: Assume country Cortania starts to trade Blueberries for country Apton's Pears. What would be the…
A: Absolute advantage arises when the country can produce the good or service with lower resources or…
Q: Draw a demand, marginal revenue and marginal cost curve for a monopoly firm. Be sure to label axes…
A: A monopoly is a market structure where a single firm is selling the product in the market which does…
Q: Suppose there is some hypothetical closed economy in which households spend $0.75 of each additional…
A: Spending Multiplier: The spending multiplier estimates the rate at which total spending will change…
Q: Discounts and incentives are demand options. O True
A: Demand is the consumer's desire to buy a specific product or service. Market demand is the demand…
Q: A. The price of good 1 increased and the goods are complements B. The price of good 2 decreased and…
A: The utility function of a consumer describes the willingness of a consumer to consume a particular…
Q: 30 Suppose now that there is no sale tax and p How much money does Gina need to spend in order to…
A: Given Gina likes 3 T-Rex's as much as she likes 4 yaks and T-Rex's ad Yaks are the perfect…
Q: When the U.S government runs a Deficit, the savings curve in the market for loanable funds shifts to…
A: A budgetary deficit is implied as a situation in which the spending is greater than the income.…
Q: explain with example The unemployment rate is the number of persons who are unemployed divided by…
A: When a worker is unemployed, it means that they have tried to find job at the going rate of pay but…
Q: The table below shows cost data for producing different amounts of oil. The market for oil produces…
A: The output level mirrors every one of the costs and benefits related to a transaction for example…
Q: QUESTION 7 When salaries decrease, what does happen in the market? O a. Total surplus decreases. O…
A: In a market, when taking about salary of an individual,it can be said that it affects the supply and…
Q: Find the consumers' surplus and the producers' surplus at the equlibrium level for the given…
A: Equilibrium is where demand equals supply. Consumer surplus is the area below demand curve and above…
Q: O domestic absorption D D nominal exchange rates aggregate demand consumption real output
A: When two countries trade with each other, it is imperative that each country should aim to achieve…
Q: Refer to the following payoff table: Firm A's Advertising Budget Low Medium High A D G Low $900,…
A: Game theory is the study of interactive decision-making in which the outcome for each participant or…
Q: discuss the characteristics of monoply market and give examples
A: Monopoly refers to a market structure with only one seller that is responsible for the entire market…
Q: Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of…
A: Utility refers that the wants satisfying power of any commodity , diminishing marginal rate of…
Q: Should the government use monetary and fiscal policy in an effort to stabilize the economy? The…
A: Government policy is a declaration of the political initiatives, approaches, and objectives of the…
Q: a) After determining the total product cost of P100.00 per unit, Mr. Rick the owner, decided to set…
A: The method through which firms determine the cost of their products or services is known as their…
Q: 0. which of the following would most likely have a price elasticity coefficient less than 1 !
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Alonso has preferences for sport cars (C) and paella (P) given by the utility function U(C, P) =…
A: Hicksian demands are function of prices (pc,pp) the utility level (U)
Q: What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports…
A: Net exports show the demand for foreign products, as well as foreign demand for domestic goods. It…
Q: 6. Three oligopolists operate in a market with inverse demand given by P(Q) = a - Q, where Q = 9₁…
A: An oligopoly is a market formation in which a market or industry is controlled by a small number of…
Q: 5. Problems and Applications Q5 1. Initial Demand and Equilibrium Q = 120L-L² 120-2Z 2. New Output…
A: Labour market : labour market is a market where the firms and households interacts. The firms…
Q: Which 2 of the following are true: O If private provision of a public good is x units and the…
A: Public goods refer to goods that are non-excludable and non-rival in nature.
Q: What is the relative importance of investment spending (I) in aggreagte demand and some factors that…
A: Investment is a part of aggregate demand. Changes in Investment shift the total aggregate demand…
Q: Which of the following is a reason for using independently pooled cross sections? O a. To increase…
A: Pooled data is a mixture of cross-sectional and time series data. For example, the collection of…
Q: Question 6 Assume that everything is the same in Country A and Country B, except that Country A has…
A: The Solow Growth Model is an exogenous model of economic growth which looks at how an economy's…
Q: please computation for the following production function
A: The Law of Diminishing Marginal returns states that in the short run, as more and more variable…
Q: Suppose that a firm has the following production function. Also suppose that the only costs the firm…
A: Producer earns maximum profit in the situation of economies of scale. The wage rate of labor…
Q: Question 16.8. "Employers set wage rates equal to marginal value products," True or False? Explain.
A: Marginal revenue product refers to the marginal revenue earned by each additional factor. For labor,…
Q: Many economists argue that rivalry in goods is not a real difference, but just a pricing problem.…
A: A rival good is something that only one user may acquire or consume. On the other hand, a product is…
Q: When the Fed controls the rate of growth of the money supply to foster macroeconomic stability, this…
A: The United States of America's central bank is referred to as FED or the Federal Reserve System. The…
Q: In the aggregate demand and aggregate supply model, when does the aggregate quantity of goods…
A: In AD/AS model, the aggregate demand curve will increase or shift to the right when any of the…
Q: QUESTION 11 In a perfect competitive market, companies will make zero profits in the long run…
A: The correct answer is OPTION A In a perfectly competitive market there are a large number of firms…
Q: The data are for a firm operating in perfect competition. Marginal Costs 70 Average Variable Costs…
A: Given price of the product = 80 $ Under perfect competitive market structure, the firm will produce…
Q: firm is trying to decide whether to keep an item of construction equipment for another year. The…
A: The double declining balance (DDB) depreciation method is an approach to accounting that includes…
Q: Explain whether or not each industry fits the definition of an oligopoly. What are the dominant…
A: Oligopoly markets will be markets overwhelmed by few providers/suppliers. They can be tracked down…
Q: Define the concept of scarcity. Explain the significance of this concept in relation to the concept…
A: Scarcity: The scarcity occurs where demand tends to be larger than available resources. Thus,…
Q: y-axis A 2- Zone 4 Zone 1 Zone 3 B Zone 2 n this graph, zone 3 is characterized by x-axis…
A: Underemployment refers to the employment below the full employment level. When economy is in…
IMPORTANT: The owner chooses to adopt a new technology that changes the cost function to C(q)=4q^2+2q+64. All the competitors follow her lead and choose to adopt the same technology and have the same cost function. They are all
Step by step
Solved in 2 steps
- A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/² L¹/4 The amount of capital used for production is determined at the beginning of the year. The prices of K and L are v and w respectively.A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4.a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. (Enter your responses rounded to three decimal places)(Part of A): What is the average product of labor when the firm uses 256 units of labor?Answer:b. Find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 81 units. (The second response is the exponent on L in the expression. Enter your responses rounded to two decimal places).MPL = × L ^ Then, illustrate that the marginal product of labor depends on the amount of labor hired by calculating the marginal product of labor for 16 and 81 units of labor. (Enter your responses rounded to three decimal places).MPL when L = 16: MPL when L = 81: c. Suppose capital is fixed at 81 units. If the firm can sell its output at a price of $200 per unit of output and can hire labor at…Consider the following production function: q = (KL)“, where a > 0. Answer the following questions: (a) Under what conditions (i.e. values of a) will the production function exhibit decreasing returns to scale? Under what conditions will it exhibit constant returns to scale? Under what circumstances will it exhibit increasing returns to scale? (b) Confirm that the marginal physical product of capital is homogenous of degree zero in the case in which the production function exhibits constant returns to scale. (c) Derive an expression for the cost function of a firm using the production function to produce output of a good. (d) Find the first and second partial derivatives of the cost function with respect to q. Interpret the second partial derivative and relate the sign of the derivative to the returns to scale.
- Consider the following production function:q = (KL)^α, where α > 0.Answer the following questions:(a) Under what conditions (i.e. values of α) will the production function exhibit decreasing returns to scale? Under what conditions will it exhibit constant returns to scale? Under what circumstances will it exhibit increasing returns to scale? (b) Confirm that the marginal physical product of capital is homogenous of degree zero in the case in which the production function exhibits constant returns to scale. (c) Derive an expression for the cost function of a firm using the productionfunction to produce output of a good. (d) Find the first and second partial derivatives of the cost function with respect to q. Interpret the second partial derivative and relate the sign of the derivative to the returns to scale.Consider the production function f(x1, X2) = 4x1x2, where x1 and x2 are the quantities of inputs 1 and 2, respectively. One of the following statements is true. %3D Which statement is true? The production function exhibits: А Constant returns to scale. Increasing returns to scale. C Decreasing returns to scale.A firm has a production function of ?(?,?) = ??.???.? a) Explain the concept of returns to scale. Does the function provide increasing, decreasing, or constant returns to scale? b) Provide an example of a typical sector with increasing returns to scale. c) Explain the concept of MRTS and argue whether the MRTS for this production function is diminishing. Please also provide a graphical illustration using numbers.
- Q = A Lx Ky (Quantity, A, Labor, Capital) If A; X; Y are all positive numbers, does the production function exhibit Increasing return to scale, Constant return to scale or Decreasing return to scale?A firm has the following production function f (K;) = AK 1. Derive an expression for the future marginal product of capital (the marginal product of capital at time t+1) MPK considering that A is not expected to change.Consider the following production function: Y = F(K, L) A(2K + 3L) Does this production function exhibit constant returns to scale? =
- A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is this a long run or short run production function? Explain. If this is a short run production function, write down an example of a long run production function. If this is a long run production function, write down an example of a short run production function. b) What are the conditions that m must satisfy so that the production function exhibit increasing, constant or decreasing returns to scale? Explain. c) Calculate the marginal rate of technical substitution. d) Use the isoquant-isocost analysis and draw a graph to illustrate how firms decide the efficient method of production. You do not need label the axis with specific numbers.Firm ABC has estimated that it has the following production function: Q = 1.5LK – 0.3L2 – 0.15K2 Labor (L) has a price of €60 and capital (K) has a price of €75. ABC wants to maximize the production with a total cost of €2025. (a) Determine the quantities of labor and capital the firm should use. (round results to 2 decimal places) (b) What quantity of output will be produced at the optimal combination of factors of production?For the following production function: Y(K,L)= 25(KL)^(1/2) a) Compute the MRTS b) Define if it exhibits increasing, constant, or decreasing returns to scale c) Is the MRTS decreasing, increasing or constant as we increase the labor input? Provide numerical evidences and an economic interpretation of your answer d) Compute again the MRTS for this new production function: Y(K,L)= 2K+5L e) Compare now the MRTS of the two production functions and explain why the second case is a special case of the general result obtained at point a).