The explicit cost of production equals: a. economic cost minus opportunity cost. b. opportunity cost minus sunk cost. c. implicit cost minus sunk cost. d. opportunity cost minus implicit cost.
Q: Jarod has $26. The following table lists sets of items and their prices that Jarod is considering…
A: Hi there , as you have posted multiple questions following our guidelines we can only solve 1 at a…
Q: How does one calculate the break-even point in units?
A: For producing the goods and services, costs of production has to be incurred. It involves fixed and…
Q: What effect will the following changes have on the DEMAND for coffee? (a) An increase in people's…
A: Introduction Demand is the quantity of a good which a consumer is willing and able to buy at various…
Q: Children in poor neighborhoods have bleak outlooks on life and do not see much gain to studying. A…
A: Poverty in the household plays a major role in the education of the children. A family who is…
Q: Ana and Dina are roommates. They spend most of their time studying (of course), but they leave some…
A: Opportunity cost is a financial matters term that alludes to the worth of what you need to provide…
Q: A tobacco company is interested in hiring a salesperson to promote smoking cigarettes in nightclubs.…
A: An individual will consider the expected value of events when faced with uncertainty. They will also…
Q: .Saving and investment in the national income accounts The following table contains data for a…
A: Gross Domestic Product (GDP): Gross Domestic Product is described as the total value of goods and…
Q: A gas station owner sees a report on TV which states that the number of gallons of gasoline sold in…
A: Demand elasticity evaluates how variables like price and income impact consumer demand for a…
Q: Drinking coffee & Tea has been linked to numerous health benefits, including a reduced risk of type…
A: It is given that: Drinking coffee & Tea has been linked to numerous health benefits, including a…
Q: If there is inelastic demand for your labor, how does that influence individual (or union)…
A: The elasticity of demand for labour measures the responsiveness of labour demand to a change in the…
Q: 2. Assume a monopolist sells a product with a total cost function equal to TC = 400 + Q². The market…
A: Ans. 2. Uner the monopoly market The profit maximization level is where MR = MC…
Q: PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 0 MC 50 100 150 ATC MR 200 250…
A: A scenario called monopoly happens once there's only 1 marketer within the market. The monopoly case…
Q: A dry cleaner in California encountered controversy for charging more to dry clean women’s shirts…
A: Price discrimination refers to the discrimination done by the owner or the producer while charging…
Q: Wine Bread The diagram above depicts society's choices according to the resources available to…
A: Production Possibility Curve (PPC) represents graphically all possible combinations of output that…
Q: A. A survey of 200 retail grocery shops revealed the following monthly income pattern: Monthly…
A: A measure which calculates the likelihood of an event to occur is known as probability. Formula:…
Q: In what economic system does tradition dictate how economic activity is organized? O market-oriented…
A: There are different types of economic systems based on different economic characteristics.
Q: . P 20 15 10 5 D 10 20 30 40 Q In the market shown in the graph, the equilibrium price is: Multiple…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: Demand is highest for watermelon in the summer, yet that is also when prices are lowest. Draw a…
A: We know that the demand for a product depends on the taste and preferences of a consumer. For…
Q: There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere…
A: In the United States, there are more single proprietorships, partnerships, and small businesses.…
Q: Why do firms operating in a monopolistically competitive industry have the power to raise the prices…
A: "In economics, there are mainly four types of market structures and each have their own features…
Q: Table 4-5 shows the demand and supply schedules for the low-skilled labor market in the city of…
A: Supply and demand The connection between both the quantity of a good or service that producers want…
Q: Farah has $100 to spend each month on bread and chicken. Suppose the price of bread is $4 a loaf and…
A:
Q: Task 3: The population of the Republic of Butters is 165. Of these 165 individuals, 130 are in the…
A: The labor force is the sum of unemployed and employed people i.e., Labor force = Unemployed +…
Q: Suppose that an ISP leases a new server in order to increase the speed of Internet service by…
A: The term cost describes any expense a business has when producing its goods or rendering its…
Q: If Andres and David decide to specialize and cooperate, then Andres will produce sandwiches and…
A: Suppose there are two people, A and B. And they are producing two goods, i.e., X and Y If A's…
Q: is the ability of persons, groups, or institutions to influence political developments. O Apathy…
A: Self-Government refers to the principle that the people are the main source of governing authority…
Q: The table below contains the price indexes for the macro economy for several years. Price Index…
A: The inflation rate implies the rate at which inflation is rising over a particular period. This rate…
Q: For a certain Utility function, which is a simple sifted parabolic equation, the maximum utility is…
A:
Q: The president of the United States issues a quota on the amount of steel that can be imported from…
A: A quota is a trade limitation put in place by the government that restricts how many or how much…
Q: 14. Cournot Oligopoly Problem 2 - heterogeneous costs duopoly Suppose the following: • Inverse…
A: Given information P=24-4Q Two firms are available in the market. MC1=C1 fixed cost=F1 MC2=C2 and…
Q: Assume that a firm buys all the parts that it puts into a computer for $1,200, pays its workers…
A: Value added is the income created by producing the good. It measures the value of real GDP.
Q: How can technology increase inequality with the GDP growth?
A: Technology can increase inequality if it leads to increased automation and job loss in sectors that…
Q: The US government pays $10 million to Iran for crude oil to add to US government-owned oil reserves.…
A: GDP means the value of all final goods and services produced within the domestic territory of a…
Q: How many years will P50,000.00 earned a compound interest of P10,000.00 if the interest rate is 10%…
A: Compound Interest refers to the interest paid on both the principal amount and also on any…
Q: Explain the circumstances where the law of supply may not hold.
A: The Law of supply shows the positive relationship between price and quantity supplied, other things…
Q: Large budget deficits __________. a.) reduce the value of domestic currency b.) help alleviate the…
A: When government expenditures are greater than its receipts, we can say that the government is…
Q: A small countertop installing company hires you to estimate their customers weekly demand function…
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…
Q: The data below represent a demand schedule. Product Price Quantity Demanded $ 6 0 5 1 4 2 3 3 2…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: A university spent $1.6 million to install solar panels atop a parking garage. These panels will…
A: given that, Solar panels capacity = 700 KW The electricity purchase price per kWh = $ 0.30
Q: Answer the following under the assumption that the firm has increasing marginal costs: The long-run…
A: We are given the assumption that the firm has increasing marginal cost. Based upon this assumption…
Q: Question 20 Which alternative correctly shows the general form of Sarah's budget line? Note: BR =…
A: Budget line shows different combinations of two goods that can be bought with the given prices and…
Q: Table 4-2 A country club usually only allows members to purchase tickets for its celebrity golf…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: What type of cost is the tuition paid for college credit after the census date when a refund is no…
A: There are different types of cost, fixed cost, variable cost, opportunity cost.
Q: The following graph shows the market for cereal in Detroit, where there are over 1,000 stores that…
A: Market for Cereal is given More than 1000 stores are selling the cereal Government increases local…
Q: 6. Why is economics central to an understanding of the problems of development?.
A: We know that The development of an economy is based on the development of the infrastructure, the…
Q: 5. Economic growth and public policy Suppose an American buys stock issued by an Argentinian…
A: Since the American bought the share issued by the Argentina's company. Hence he can sell the share…
Q: Why do businesses and governments often use utilitarian thinking to determine the proper course of…
A: Utilitarian approach The utilitarian philosophy has significant ramifications for how we ought to…
Q: When the actual price in a market is above the equilibrium price we would expect:
A: A situation when the actual price is above the equilibrium price is the same as the price floor.…
Q: Explain the difference between a shift along the supply curve and a shift in the supply curve itself
A: There is shift along the curve when the curve is impacted by a change in pricing. The curve itself…
Q: 8. What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year?
A: Future value (FV) is the value of an present asset at a future date in view of an assumed rate of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. The cost of fuel used in its planes. The rent on its Piarco headquarters. The lease payments on its current inventory of jets. The cost of peanuts it serves to passengers. The salary paid to the Chief Executive Officer. i. ii. iii. iv. V. c. How is the difference between average total cost and average variable cost impacted by an increase in output?Which of the following is always downward-sloping? a. The marginal cost curve when it is below the average total cost curve.b. The marginal cost curve when it is above the average total cost curve.c. The average total cost curve when it is below the marginal cost curve.d. The average total cost curve when it is above the marginal cost curve.Amjad takes twenty minutes to travel from his home to his work using his car; however, he chose to take a bus, for which he consumed thirty minutes to reach his office. What type of cost is presented in the scenario? a. Nominal cost b. Alternative cost c. Social cost d. Implicit cost
- If there are diseconomies of scale within a given range of output, which of following is(are) TRUE? A.Long-run average cost must equal short-run average cost. B.The long-run average cost curve must be upward sloping within that range of output. C.The short-run average cost curve must be upward sloping within that range of output. D. All of the above.Which of the following is true? a. When the average cost is decreasing, the total cost must also be decreasing. b. When the average cost is decreasing, the average product of labor must be decreasing. c. When the average cost is decreasing, marginal cost must be less than average cost. d. When average cost is decreasing, output must be decreasing.When thinking about cost analysis in Microeconomics, what are the real-world problems that occur when applying theories of scale? Describe and give an example of each.
- If average total cost is increasing as output increase, then marginal cost must be average total cost. Select one: a. equal to b. less than c. greater than d. not enough information to make a decision. One important concept we learned this semester is the relationship between productivity and cost. We learned that average variable cost and the average product of labor have a relationship, ceteris paribus. Select one: a. fixed or constant b. all of the above c. inverse O d. positiveHow does the impact of fixed costs change production decisions in the short run and in the long run? Use the average-total-cost (ATC) model to demonstrate this impact.Question 2 a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. i. The cost of fuel used in its planes. ii. The rent on its Piarco headquarters. iii. The lease payments on its current inventory of jets. iv. The cost of peanuts it serves to passengers. v. The salary paid to the Chief Executive Officer. c. How is the difference between average total cost and average variable cost impacted by an increase in output?
- Question 2 a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b.List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. i.The cost of fuel used in its planes. ii. The rent on its Piarco headquarters. iii. The lease payments on its current inventory of jets. iv. The cost of peanuts it serves to passengers. v. The salary paid to the Chief Executive Officer. c. How is the difference between average total cost and average variable cost impacted by an increase in output?Define total cost, average total cost, and marginal cost. How are they related?Which of the following statements is false? a. The long-run average-total-cost curve does not connect the minimum points of each of the short-run average-total-cost curves. b. The long-run average-total-cost curve shows the minimum cost of producing each level of output when all resources are variable. c. The short-run average-total-cost curve shows the minimum costs of producing each level of output when at least one input is fixed. d. If short-run average-total-costs are declining, then economies of scale exist. e. None of the above.