Microeconomics
Question #2 Consumer Demand. How to answer questions from a-g iii. I belive the MRS is 2y/x for B. But not sure
When a firm’s total revenue potentially exceeds total variable cost for at least one output level, in that case economic losses are minimized or profit is maximized through producing where: (i) average total cos
When the world price for wheat is $10 per bushel; and Del, who one owns the biggest wheat farm into North Dakota, will: (w) face a demand curve that is perfectly price elastic at $10 per bushel. (x) realize $4 per bushel in long-run economic profits.
When you were in the ski boat business, your net revenues from selling given numbers of boats would be least influenced by: (i) Govt. increasing fees for boat licenses. (ii) Rises in prices for jet skis. (iii) Pay hikes for dock-workers. (iv) Vacation
“Wedges” in between demand and supply curves are generated by: (1) arbitragers and speculators. (2) intermediaries and transaction costs. (3) development in the level of national income. (4) politicians who enact laissez f
When the resource market shown in this illustrated figure is initially within equilibrium along with demand curve D0: (w) owners of these resources currently receive no economic rents. (x) economic rent is specified by area
Open market operation signifies to the sale and purchase of securities by the Central Bank in case of deficient demand whenever AD falling short of AS at full employment, the Central Bank purchases securities in open market and makes payment to the se
Financial institutions make possible economic efficiency primarily since: (w) laissez faire markets handle asymmetric information poorly. (x) corporate ownership must be stabilized. (y) they channel funds from agents along with surplu
A purely competitive firm will turn out where P = MC since this: (w) is good for society. (x) is all which is permitted through law. (y) maximizes profits. (z) permits price adjustment although not quantity adjustment. Q : Determine a price taker from firm Of Of the given firms, the probably to be a price taker would be a: (i) sheep herder in a remote part of New Zealand. (ii) local gas and electric company. (iii) sculptor’s agent who contacts potential buyers through the internet. (iv) small town&rs
Of the given firms, the probably to be a price taker would be a: (i) sheep herder in a remote part of New Zealand. (ii) local gas and electric company. (iii) sculptor’s agent who contacts potential buyers through the internet. (iv) small town&rs
Financial assets will create lower rates of return to prospective investors while: (w) they become more liquid. (x) their prices go up. (y) interest rates increase. (z) default risks decrease. Hey
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