Discuss the claim that the main developments in microeconomic theory in the 1920s and 1930s involved moving on from the theories developed by Alfred Marshall.

Q: How does fixed cost affect marginal cost? Why is this relationship important?

A: Fixed cost is the cost which does not change with the change in the output.Marginal cost is the…

Q: which of the following is an assumption of the monetary approach to the exchange rates? A - PPP…

A: The market for foreign exchange is an internationally, decentralized marketplace that allows both…

Q: Consider the following scenarios and briefly explain how each scenario would affect short-run…

A: Short-Run Aggregate Supply (SAS): SAS represents the total supply of goods and services that firms…

Q: The diagram above shows two PPF curves. Answer the following questions. Which of the two points on…

A: Consumer goods are goods directly consumed by individuals to meet their requirements, while capital…

Q: The following table shows the daily cost data and demand schedule for a typical firm producing board…

A: In a monopolistically competitive market, there are many firms that offer differentiated products,…

Q: Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table…

A: Equilibrium refers to a state of balance or stability in an economic system where the quantity…

Q: b. Calculate the profits (or losses) for this typical firm. per month c. At this market price, will…

A: Firm produces at the point where P=MC since, in perfect competition price is constant and equal to…

Q: ational income (NI) equals $ 11800 billion. (Enter your response as an integer.) ersonal income (PI)…

A: It can be described as the amount of income available for an individual after paying all the taxes…

Q: The figure given below shows the demand and supply curves of steel. 5, is the private supply curve,…

A: A negative externality refers to a cost or consequence that is imposed on a third party or society…

Q: Local coffee Demand can be characterized by two types of people: Low demanders with QDL = 12 - 2PX,…

A: The consumer surplus occurs when the amount that the consumers are willing to pay is higher in…

Q: Consider a simple economy that produces two goods: stickers and enamel pins. The following table…

A: Nominal GDP and real GDP are two indicators used to measure a nation's economic production. Nominal…

Q: What will be the break-even quantity, if the shop sold all the quantities what will be the profit or…

A: Break-even quantity is the quantity at which total costs and total revenue are equal.

Q: Exporting from the US Pros: transportation costs would be low. Since it would be produced locally,…

A: Analyzing the possible expenses and advantages associated with various solutions is known as C-B…

Q: At the end of their useful lives alternatives A and C will be replaced with identical replacements…

A: The internal rate of return (IRR) is a financial metric used to evaluate the profitability and…

Q: The Gulf Cartel and Sinaloa Cartel are the two major cartels in illegal drug trade in Mexico.…

A: Cartel is the group of firms that make decision of pricing and production collectively. They form…

Q: Derive the relationship between the quantity of X demanded and the price of X if the consumer’s…

A: The utility function refers to all those commodity bundles that derive the same amount of utility…

Q: Consider the economic model D₂ = a-BP (a,B> 0) St = 0+8Pt-1+Et (0,8>0) Dt = St where P is price, D…

A:

Q: gasoline was $3.25 a gallon last week and this week it is $3.95 a gallon, what is the percentage…

A: Percentage change is a measure of how much a quantity has changed over time, relative to its…

Q: Watch the 2012 OpenLearn from The Open University video The Phillips Curve - 60 second adventures in…

A: The Phillips curve is a graphical representation of the relationship between inflation and…

Q: a. Income elasticity for meals at restaurants is b. Income elasticity for cups of coffee is c.…

A: Income elasticity of demand measures the responsiveness of the demand for a good or service to the…

Q: Problem 03-07 (algo) Suppose that the demand and supply schedules for rental apartments in the city…

A: Trade happens when consumers have a need for certain goods and producers are willing to provide that…

Q: the computer, which will reduce the result of the property being an infringement. A con from…

A: It can be defined as the rules and restrictions imposed by the government to hinder the flow of…

Q: Suppose that total factor productivity, A,, fluctuates in the Solow model. In particular: A₁ = A=1…

A:

Q: How to draw AD and AS curve for this? AD= Y= 700+20 x (600/P) -- 600 is the Money supply (M) AS=…

A: It can be described as an economic term that shows the willingness of all the producers in the…

Q: Inputs K, L, R and M cost £10, £6, £15 and £3 respectively per unit. What is the cheapest way of…

A: Since you have asked multiple questions, we will be solving only the first one. Please repost and…

Q: The revenue from the sale of a product is, in dollars, R= 1500x + 3000(5x + 3)-1 - 1000 where x is…

A: Marginal revenue is the additional revenue generated from the sale of one additional unit of a…

Q: IMF loan condition and challenges in Bangladesh. Please write this in 1500 word. Also include the…

A: This paper explores the International Monetary Fund (IMF) loan conditions imposed on Bangladesh and…

Q: The following figure shows the revenue curves of a monopolist Figure 11.6 5000- 4000 Pnce ($) 2500-…

A: In a monopoly market structure, There exists a single seller. The monopolist produce where the MR is…

Q: This assignment is designed to develop skills in collecting and assessing market information and…

A: Market Power:Market Power refers to the ability of a firm or a group of firms to influence the…

Q: Figure 8-5 1. Refer to Figure 8-5 above. What happens to consumer surplus when a tax is imposed in…

A: Since you have posted multiple MCQs from different topics, we will be solving only the first one. If…

Q: What is consumer surplus? Explain in words and by drawing supply and demand curves. What is producer…

A: It can be described as a number of products or any type of commodity that are supplied more than the…

Q: where i and Yi, " 14. a) Let there be two consumers 1 and 2, and two goods X and Y. The utility…

A: Public economics is the study of how governments spend funds and make choices in order to improve…

Q: Find the maximum profit that can be made and the corresponding number of suits and gowns that yield…

A: We have to find the maximum profit that can be made and the corresponding number of suits and gowns…

Q: 3. A local contractor is considering the production of the fireworks. The variable cost per unit is…

A: In economics, production is the most common way of making goods and services. It is the…

Q: A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) =…

A: "As per policy I am providing answer for the first three subparts. Kindly repost this question again…

Q: 25. Based on the information given in the diagram below draw the Offer Curve for the nation. You…

A: Offer curve describes the quantity of a particular good that a particular country wants to offer in…

Q: In the above figure a consumer is initially at equilibrium at point C. The consumer’s income is…

A: At the optimal level of consumption, the utility derived from consuming a good is maximum given the…

Q: Classify each of the following as a supply shock or a demand shock. Use a graph to show the effects…

A: A demand shock refers to an event or factor that causes a sudden change in aggregate demand within…

Q: Consider the following utility function for Xavier: U(X, Y)=x2y where the prices of each good are…

A: A utility function is a mathematical representation used in economics and decision theory to express…

Q: Consider a simple economy with just two industries: farming and manufacturing. Farming consumes 1/2…

A: The relative outputs of farming and manufacturing industries.

Q: What is the variance of portfolio returns?

A:

Q: Price L P M 0 Q* 1. Consumer surplus is represented by the area & OLD LPN b. MPN PNQ"O Price L p M 0…

A: Consumer surplus is a concept used in economics to measure the benefit or value that consumers…

Q: Questions 1-6 refer to Table 1 below. Table 1 Apples Burritos Chewing Gum 2012 Quantity 50 80 60…

A: Nominal GDP is the product of current year price and current year quantity. Nominal GDP includes…

Q: What is the Book value of an equepment purchased four years apo for$100,000, a sakage valuo…

A: The book value of equipment purchased four years ago for , with a salvage value of and an expected…

Q: Amount (in dollars) Celto Money Public Cash Holdings $20,000 Checking Accounts Savings Accounts…

A: Money supply refers to the total amount of money available within an economy at a specific point in…

Q: If you were studying the following relationship, which variable would be exogenous and which would…

A: Endogenous variables are those variables whose values are determined in the model. It is also called…

Q: Q4. (a) Explain how reducing output below the competitive equilibrium reduces total welfare.

A: Total welfare, also known as social welfare or societal welfare, refers to the overall well-being or…

Q: You are the primary engineer overseeing your company's best-selling product line. Even though the…

A: The cost of buying parts from 3rd party is $3.75 per part.Annual production or sale =1 million or…

Q: D D Question 1: Jerusha, a woodworker, builds coffee tables using both labor (L) and tools (capital,…

A: A short-run production function is a function that demonstrates the connection between the quantity…

Q: In 2017, Hurricane Irma had a significant, negative impact on the orange harvest in the state of…

A: The price elasticity of demand for oranges is -1.5There is a 21% decrease in the quantity of…

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral.  This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.