Draw a long run average cost curve that, at different quantities, exhibits economies of scale, diseconomies of scale and constant returns to scale.  Indicate the quantities associated with each regime.

Q: the required reserve ratio is 1/3, currency in circulation is $300 billion, checkable deposists are…

A: Money supply can be measured in ways like M1, M2, M3, M4. M1 has most of the liquid parts which are…

Q: What are the advantages and disadvantages of special interest groups within the democratic system of…

A: The various measures taken by the government to control and regulate the private sector in order to…

Q: Which of the following policies should the government NOT adopt if its goal is to enhance economic…

A: When talking about economic growth, it can be said that it is explained by an increase in the…

Q: Explain the cross-price elasticity of demand of I0GO yoghurt when the price of Yop yoghurt reduces?

A: Complementary goods are the ones which are used together such as bread and jam. Substitute goods are…

Q: Suppose that at the end of December 2009, Federal Reserve notes were $600 billion, the quantity of…

A: The monetary base includes the entire amount of a currency that is either in the form of commercial…

Q: As usual, goods 1 and 2 are perfectly divisible, meaning that ₁ and 2 can take on any nonnegative…

A: U = (x1x2)0.5 - 2-x3

Q: A constant depreciation based on the assumption that the lost in value is proportional to the age of…

A: The sum-of-year digit method of depreciation is the accelerated depreciation method in which the…

Q: 1. What does it mean for preferences to be "complete"

A: Preference means the desire to get one thing more than another.

Q: Marginal Cost A division of Ditton Industries manufactures the Futura model microwave oven. The…

A: The sum of payment paid to the factors of production for producing the final output is known as the…

Q: Vater Lilies, one of many flower farming companies, decides to grow an extra acre of tulips. Le…

A: The quantity of sellers indicates how many units of a particular good are available on the market.…

Q: Along an indifference curve Multiple Choice O the MRS is constant. O O O the price ratio is…

A: The definition of the indifference curve is the curve that depicts various pairings of two…

Q: How should the situation be rectified to return to full employment

A: When discussing short-term changes in aggregate demand or supply, it can be claimed that these…

Q: 19. What are the two sources of economic growth and what percentage of growth is each responsible…

A: Growth matters because Faster growth in GDP expands the overall size of the country's economy and…

Q: What distinguishes the real value of a statistic from the nominal value of a statistic? Group of…

A: The nominal value of any economic measurement/statistic implies the measurement/statistic is…

Q: National Income $7,500 Consumption $5,400 Saving

A: National income (Y) is the total of earning of factors of production ( land, labour, capital and…

Q: Longer retirements. People are living longer than ever before. However, the retirement age in most…

A: Utility function : ln C1 + Bln C2 + B2ln C3  Budget Constraints - Period 1  : C1 + S1 = A1w1  Period…

Q: US Treasury yield curve is plotted in the following graph: INTEREST RATE (%) 6 5 0 5 10 15 20 25…

A: A yield curve is a line that depicts the rate of interest on debt. It displays the interest rates of…

Q: In the nonlinear function Y = ax ZC, the parameter c measures Multiple Choice O O O the percent…

A: The graph is not a straight line if it is non-linear. A non-linear function has a curved line as its…

Q: Imagine a consumer - worker who has a total time endowment of 100 hours per week. He/She can use…

A: The worker divides his times between the leisure and work. The wage rate encourages more supply…

Q: The following is a report from a BLS survey taker: There were 90 people in the houses I visited. 20…

A: unemployment rate, percentage of unemployed individuals in an economy among individuals currently in…

Q: a. Referring to the above data, discuss whether gasoline cars and electricity are substitutes or…

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

Q: ate the const mer's max zation problem and express this in words. ow let Px = 10, Py=20 and income M…

A:

Q: The rate at which a consumer is able to substitute one good for another is determined by the…

A: The Marginal utility refers to the change in the total utility when one additional unit of good is…

Q: A good economic theory …

A: An economic theory is a collection of ideas and principles that explains how different economies…

Q: he cost of ingredients for a turkey sandwich at The Pit Room is $5, and the daily demand function…

A:

Q: For mutually exclusive projects are being considered for a 2 mile jog in track. The life of the…

A: Formula used to calculate the B-C ratio is given below:  B-C ratio = PW of benefits / PW of costs…

Q: Item Imports of goods and services Foreign investment in the United States Exports of goods and…

A: In international economics, the balance of payments of a country is the difference between all money…

Q: 1. Using benefit-cost ratio analysis, determine which one of the three mutually exclusive…

A: Cost-benefit analysis is a method for contrasting the expenses and advantages of an intervention,…

Q: Which of the following explains why the supply curve is upward sloping? At a lower price, consumers…

A: A supply curve determines the relationship between the price of a good and its quantity supplied.…

Q: Draw the short run marginal cost curve for a firm with eventually diminishing marginal product.…

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: Among the sources of increase of productivity are Group of answer choices All of the above advances…

A: By comparing the quantity of goods and services produced (output) with the quantity of inputs…

Q: Using the properties of variance, what is the variance of Y=4X−5 where Var(X)=1?

A: Given information: X is a random variable, and the variance of X is 1 i.e., Var(X) = 1 We need to…

Q: (F1, F2, F3)=√12-2³ As usual, goods 1 and 2 are perfectly divisible, meaning that ₁ and ₂ can take…

A: This is 3 goods utility maximization problem. And we are given the utility function of the consumer.…

Q: Consider the average annual growth rate 3.51% of 2000-2005, forecast the nationals population in Abu…

A: Year Abu Dabi       Nationals Non-nationals Total 1980 90792 361056 451848 1985 135982 430054…

Q: Dollars D D CQ5 b 0 F Multiple Choice Refer to the diagram. Equilibrium output is O O MR g hj Output…

A:

Q: Adwoa purchases only pasta and salad with her income of ghc 160 a month. Assume the price of pasta…

A: Here we are given consumer's budget which includes price of both the goods and the income. And hence…

Q: Economic growth is the process of Group of answer choices All of the above producing more…

A: In an economy, people make economic activities by exchanging products, services and other assets…

Q: First Welfare Theorem says that the competitive equilibrium allocation is Pareto Efficient under a…

A: A discipline of economics known as welfare economics uses methodologies from the study of…

Q: The determinants of nominal interest rates are:  Inflaiton  Real Risk-Free rates Defual or credit…

A: the analysis of tradeable financial instruments called securities. it deals with finding the proper…

Q: As observed in a certain appliance store when the price of electric fan increased from 1000 to 1200…

A: Cross-price elasticity measures the responsiveness of change in demand of one good to change in the…

Q: A O The total surplus (sum of producer and consumer surplus) would increase

A:

Q: Imagine a consumer - worker who has a total time endowment of T=100 hours per week. He/She can use…

A: Utility Maximization depends on the distribution of available hours between the work and leisure.…

Q: Show that if in R2 are continuous, highly monotonic preferences then indifference curves (i.e.…

A: 1.) Normative announcement expresses a value judgment about whether a scenario is ideal or…

Q: A sales position is offered at a pharmaceutical company with two salary options. Option A would pay…

A: Both options give us the total income earned. Hence, we equate both the Y's given to us and find the…

Q: COMPUTE THE EQUIVALENT RATE OF 6% INTEREST COMPOUNDED SEMI- ANNUALLY TO A RATE COMPOUNDED QUARTERLY?

A: Here we will use the future value formula in the case of compound interest rate:  F = P(1 +R/m)tm P…

Q: The ________ function is the mathematical representation of the technological relationship between…

A: Net export is the difference between Export and import.  Saving is the remaining amount from the…

Q: Given Table 12-6 below, fill in the values for saving. Assume taxes = $800. Table 12-6 National…

A: Saving is the difference between the disposable income and consumption.   Disposable income =…

Q: Armando consumes two goods: grapes and wine. He can purchase both at the market and also possesses a…

A: The Alfred Marshall-named Marshallian demand function defines how much a consumer needs of a certain…

Q: Discuss the actions a purchasing manager can take to reduce uncertainty associated with supplier…

A: Introduction  Any business or other organization must make the best purchasing decisions to enhance…

Q: Spring is here, and Shen and his brother would like to go. fishing for the weekend in New Hampshire.…

A: Private goods are rival in consumption and excludable whereas public goods are non rival as well as…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.