In your own words, why isn't the cost of producing a product sufficient to predict its market price?

Q: Consider an exchange economy with 2 agents and 2 goods. In an Edgeworth-Bowley diagram, show and…

A: Disclaimer: Answer to the first three subparts provided.

Q: The sole proprietor of the FM2 Financial Services, Bondo, receives all accounting profits earned by…

A: The Accounting profits of the firm are calculated as Total Revenues - Total Expenses. But if we…

Q: Discuss in brief the various techniques of demand forecasting.

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: QUESTION 4 According to the IS curve, when interest rate i increases, equilibrium output Y will…

A: IS curve shows the relationship between interest rate and income in the goods market. It is a…

Q: LEASE ANSWER AND SHOW SOLUTION A dam will have a first cost of P250,000,000, an annual maintenance…

A: First cost = $25000000 Annual maintenance cost = $1250000   Reconstruction cost = $5000000

Q: Electronics is revising its strategic HR plan and comparing employment needs to the level of sales.…

A: HR is the arrangement of individuals who make up the labor force of an association, business area,…

Q: X is a factor of production. When Marginal Revenue = $25, Price of X = $200, and the Marginal…

A: The factors of production are sources which can be the constructing blocks of the economy; they're…

Q: How important are services in the U.S. economy?

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Suppose that a particular industry has a four firm concentration ratio of 45 and a Herfindahi inder…

A: Here, it is given that the market has four-firm concentration as 45 and HHI as 1540.

Q: An asphalt pavement costing PHP 100,000 which would last for 5 years with negligible repairs. At the…

A: Given that; An asphalt pavement costing PHP 100,000 which would last for 5 years with negligible…

Q: Thomas is a lawyer who is tarting his ewn private practice. To do this, he qt his jos junion parter…

A: explicit costs are the cost which are incurred by the producer in order to run the bussiness. In…

Q: Y 12 SA initial MRTS AK 10 8 diminishing MRTS 6 4 2 IQ = 100 1 2 3 4 5 6 7 Labor (L) A) Assume a…

A:

Q: Answer the following questions. 2.1 One good: barley. The economy has enough labor, capital, and…

A: 2.1  Y=800 Ms= $2000 P= $10/bushel

Q: Which of the following is true with respect the distribution of income in Ukraine, based on the…

A: Lorenz curve and Ginni coefficient are the tools used to measure the inequality in an economy.  With…

Q: $300, G-$200, NX -$100, and that the money supply is equal to $300. Based upon these assumptions,…

A: velocity  of money supply refers the number of times a currency changes for the purchasing of goods…

Q: QUESTION 16 2 policies are applied. The overall outcome is a lower interest rate and no change in…

A: Central bank efforts aimed at affecting the amount of money and credit in an economy are referred to…

Q: Economics Part 1 O See Hint A firm produces output (y) using two inputs, labor (L) and capital (K),…

A: Given; Production function; Y=L0.25K0.75 where; L= 120 K= 60

Q: QUESTION 10 A boost in consumer sentiment will shifts IS curve to the right. O True O False

A: A boost in consumer confidence means that people are wanting to spend more either on investment or…

Q: A negative marginal utility implies that the consumer has reached a point of satiation.

A: Total utility, in economics, is defined as the total amount of satisfaction which a consumer…

Q: This worksheet provides information for the MARKET FOR CELL PHONES. For each of these unrelated…

A: 4. The price of call made from landline increases The law of demand is affected when the price of…

Q: In what ways are Latin jazz and salsa similar to and different from each other? Describe specific…

A: Jazz, unlike salsa, does not use calve beat. Jazz rhythms may range from simple to complicated.…

Q: what kind of relationship is between GDP and unemployment

A: GDP from expenditure approach includes consumption expenditure, investment expenditure, net exports…

Q: 3. Draw and describe analytically the set of feasible consumption choices. What is the marginal rate…

A: Answer: Feasible consumption choices: the set of feasible consumption choices are all the choices…

Q: _10. Assuming a player is not part of a union, the player is better off if the goods et is A)…

A: Competitive Market: A competitive market is a market where a large number of firms exist and each…

Q: AE AE2 AE B 2,000 700 200 450 2,000 A efer to the above figurę, Along the AD Y

A: Marginal propensity to consume (MPC) measures the change in consumption due to a change in income.…

Q: 22. Assume the US is operating in a closed economy and GDP is $20 trillion, consumption is $8…

A: a) "A balanced budget in this economy imply that government spending equates the tax revenue which…

Q: Use the information the table below to answer the following bwo questions

A: M1 = cash or coins held by public + demand or checkable deposits M2 = M1 + saving deposits +…

Q: Question 3?

A: A dominant strategy is one that a player chooses irrespective of what the other player is choosing.…

Q: Which of the following statements are true? In theory and practice government bonds are equivalent…

A: In an economy, government bonds refers to the monetary instrument that is used by the government to…

Q: Explain why supply shocks create more of a challenge for the Federal Reserve.

A: A supply shock occurs when an unexpected incident alters the supply of a product or commodity,…

Q: A firm produces output (y) using two inputs, labor (L) and capital (K), according to the following…

A: We have cobb Douglas production function  y = f(L, K) = L0.25 K0.75 And L =120 and K=60

Q: What is the maximum amount of new loans that this bank can make?

A: A bank can give loans to the public only after keeping some reserves out out total demand deposits.…

Q: Suppose the Social Welfare Function is given by U = X0.25Y0.75 and the PPF is given by: X2+Y2 = 100,…

A: We have social welfare maximization problem where we have to maximize U = X0.25Y0.75 Subject  to PPF…

Q: A CDO divides securities into different risk classes, called tranches. O True O False

A: Introduction :  Tranches are bits of a pooled assortment of protections, typically obligation…

Q: If a person moves $1,000 from a small-denomination time deposit to a demand deposit account, Select…

A: M1 definition of money supply: M1 money supply includes cash (i.e., coins and currency), checkable…

Q: The price of coke is $1.50 (y axis); the price of burger is $4.50 (x axis). Suppose that Ahmed does…

A:

Q: Which of the following is FALSE related to the Bank Run game ? A. Player 1 has 4 strategies in the…

A: A Bank Run Game is defined as a game in Game theory where all depositors deposit $1000 at an…

Q: Derive the output elasticity of labour for the following further alternative production function:…

A: Output elasticity measures a percentage change in output due to percentage change in inputs. Whereas…

Q: Hecksher-Ohlin Model Mexico and Brazil each make t-shirts and televisions. The two countries have…

A: Hecksher-Ohlin Model The model states that the country will export that good which comparatively…

Q: Which of the following transactions should or should not be counted in GDP? Answer Yes or No  and…

A: Consumer spending, investment spending, government spending, and net exports are all components of a…

Q: When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to…

A: Inflation can be defined as a rise in the overall price of all products and services in an economy…

Q: a. Why might a firm not wish to see a worker stay on until they are 75 years old?

A: A firm's output and profit maximization decision very much rely on the factor of its labor hiring…

Q: Economics 33. Is the following statement true or false? Explain. In a duopoly, ceteris paribus,…

A: Collusion is when two or more companies make an unlawful agreement to limit competition.Collusion in…

Q: e asked to decide between two projects based on annual equivalent worth. A - $10,000 $6,000 $5,000…

A: Present value expresses that a measure of cash today is worth more than a similar sum from here on…

Q: Consider a competitive market with aggregate demand function QD = 100 2p and aggregate supply…

A: Consumer surplus is the surplus which is earned by the consumers due to the difference between the…

Q: All of the following are likely results of a positive demand shock EXCEPT   Select one: higher…

A: Positive demand shock increases the aggregate demand.

Q: With the aid of graphs, explain: (a) demand-pull inflation (b) cost-push inflation.

A: The inflation refers to the rise in the prices of the goods and services over a period of time. It…

Q: 1.Discuss the main drivers of the performance of emerging market currencies since March 2020

A: Various countries' economies have suffered as a result of pandemics, with the virus being the…

Q: For points 1 to 4– Identify the tem and relevance of each point represented. 1 = 2 = 3 = 4 =

A: Total product is the sum of total output produced by the firm by using the given level of inputs. On…

Q: discuss the situation during pandemic in Canada, and discuss how monetary policy was used to correct…

A: LM curve shows the direct relationship between the interest rate and output. The LM curve is upward…