If a firm quadruples(4x) in size and output triples (3x), what is the returns to scale? A O B O C Increasing returns to scale Constant returns to scale Decreasing returns to scale O D Cannot determine

Q: Two drivers-Yakov and Ana-each drive up to a gas station. Before looking at the price, each places…

A: Price Elasticity of Demand:Price elasticity of demand is a measure of how sensitive the quantity…

Q: Imagine you are a buyer in a double oral auction with a reservation value of $13 and there is a…

A: Total gain to the buyer = maximum willingness to pay to the buyer - the actual price which is pays…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's Bikes is a bicycle manufacturer. Currently it produces bikes using only one factory. But it…

Q: You want to invest in a firm whose profits show large fluctuations throughout the business cycle.…

A: Business cycles are periodic economic fluctuations characterized by periods of expansion, peak,…

Q: The rising demand for health-care industry workers is due to the following factors, except…

A: The healthcare industry includes a broad range of services that focus on people's and communities'…

Q: In 20 years, you expect to receive $41,005. What is the present value of this cash flow if the…

A:

Q: Why do some economists support some level of inflation over completely stable prices? Instructions:…

A: Deflation is a general decrease in prices and wages.Deflation can be harmful to the economy because…

Q: Use the graph below to answer the following question: Market for Apartments Price 2,000 1,800 1,600…

A: The equilibrium occurs when demand and supply are equal. Disequilibrium is corrected throught demand…

Q: Refer to Table 24-4. The inflation rate was a. 24.3 percent in 2013 and 22.5 percent in 2014. b.…

A: Inflation rate is the rate at which the price of the good increases over time.It results in the…

Q: 2nd attempt In a two-good market, a consumer starts with an initial endowment of (x1, x2) = (2.00,…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…

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A: The LRAS is vertical and it shows the maximum potential output that can be produced with available…

Q: In the long run, profit-maximizing monopolists facing a downward-sloping demand curve a. may earn…

A: Marginal cost  is the exchange in total production cost that comes from making or producing one…

Q: After answering a summons and complaint, Luke received a set of written questions from the…

A: Interrogatories are written questions that one party sends to another party in a lawsuit. The…

Q: If a government is using fiscal policy, this means that it is using. economy. spending; interbank…

A: Fiscal policy is a macroeconomic tool used by governments to regulate their spending and taxation…

Q: At 76 units of labor, a firm finds that average product of labor equals 39.6 and marginal product of…

A: Average product is the product per unit of labour. The marginal product is the change in the total…

Q: What uniform annual amount should be deposited each year in order to accumulate P100,000 at the end…

A: The interest rate is the sum charged on top of the main by a lender to a borrower for the…

Q: factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce.…

A: A factory is currently producing 800 boats per year.Each boat costs $5000 to produce. Variable cost…

Q: of benefits and costs Parliament, the legislature of the fictional country of Verben, is considering…

A: Any project's predicted benefits and costs can be evaluated using the cost-benefit analysis…

Q: Suppose Dariya is a sports fan and buys only football tickets. Dariya deposits $2,000 into a savings…

A: This can be defined as a concept that shows a given nominal amount refers to how many units of…

Q: The Urban Utility Curve shows us worker utility as a function of the number of workers in a city.…

A: There are utility curves provided which represent the utility level of workers in two cities which…

Q: FIGURE 2-10 Wheat (bushels) Apples (bushels) 0 Refer to Figure 2-10. What movement along the…

A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…

Q: Which of the following statements are true about price controls used by some local governments? A)…

A: Price Control alludes to the guideline by the government or a legal power of the prices charged for…

Q: If firms producing the profit maximizing level of output experience total revenue less than total…

A: If firms producing the profit maximizing level of output it is the situation where firms should make…

Q: QUESTION 1 For the utility function U = Qx0.43Qy(1-0.43) and the budget 102 = 13Qx + 11Qy find the…

A: Utility maximization problem: With the given prices and the income, a consumer chooses his…

Q: For each of the proposals, use the previous graph to determine the new number of laboratory aides…

A: Demand-supply equilibrium:The demand function reflects an individual’s willingness to pay for each…

Q: Marginal Cost and Marginal Benefit Quantity (millions of megawatts) 0.5 1.0 1.5 2.0 2.5 3.0 MB…

A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…

Q: Given a demand curve of P = 169-3Qd and supply of P = 26 + 2Qs, find the total cost to society of a…

A: Demand Curve:  P = 169 - 3QdSupply Curve:    P = 26 + 2QsLump sum tax = $18The government is as…

Q: 27. A fall in the price of milk, used in the production of ice cream, will: A. Decrease the supply…

A: A supply curve depicts the positive relationship between the price of a product and the quantity…

Q: 5. (Table: Cakes) Use Table: Cakes. Pat is opening a bakery to make and sell special birthday cakes.…

A: The costs for buying mixers is provided below:Number of mixersFixed CostAverage Variable…

Q: If the MPC in the economy is 0.75, the government could shift the aggregate demand curve rightward…

A: The tax multiplier measures the change in real GDP as a result of a change in taxes. It will be…

Q: The demand curve facing a perfectly competitive firm is Group of answer choices perfectly inelastic.…

A: This can be defined as a concept that helps in the exchanging the currency from one nation’s…

Q: Using Demand and Supply Analysis. Use the line drawing tool to show the effects of an increase in…

A: An exchange rate is the rate at which one currency can be exchanged for another, showing the…

Q: Question 2 According to the following Figure, please answer a, b and c: Price C b a e 2. bede. 3.…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…

Q: The accompanying graph contains the supply for knee braces. a. At $8 a brace, how many will be…

A: The price and quantity of products and services in the marketplace are largely computer by consumer…

Q: Which of the following are true of natural resources as a determinant of economic growth? Check all…

A: The increase in a country's production of goods and services over time, typically measured by the…

Q: Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: 13+ 12 11+ 10…

A: In perfect competition, There exists a large number of buyers and sellers. The firm produces…

Q: Price Level 0 AS, AS, AD Q₂ Q₁ Q₂ Real Domestic Output Refer to the graph. If aggregate supply…

A: Aggregate supply, also known as total output, is the total supply of goods and services produced…

Q: Tom is considering purchasing a £20,500 car. After five years, he will be able to sell the vehicle…

A: The cost structure of a car is given in the table below:Purchasing cost (initial cost)20,500The…

Q: At higher prices, the price elasticity of demand is likely to be A. perfectly elastic; perfectly…

A: Demand elasticity measures how sensitive a good's quantity desired is to variations in its price. It…

Q: Pizza 8 0 Pizza $1.25 0 5 (A) (C) $2.00 O graph A O graph D O graph B O graph C Beer Beer Pizza 5 0…

A: The opportunity cost is an alternative cost that is forgone by choosing other goods. It is an…

Q: Explain what stability means in the context of the econ/stats class.

A: Economic stability refers to a state of an economy where key economic variables, such as prices,…

Q: The figure to the right shows a country in pretrade equilibrium at point X. Suppose this country is…

A: Equilibrium is the situation in the market when quantity demanded by consumers equals to the…

Q: Suppose the government doesn't want to discourage employers from hiring laboratory aides and,…

A: This can be defined as a concept that reflects an individual’s willingness to pay for each unit of…

Q: If Burundi allows international trade in the market for maize, it will import answer, accounting for…

A: "As per our policy, we can provide solution to the first three subparts. Kindly raise the question…

Q: Suppose your classmate Cho offers you a wager: She will choose a playing card at random from a deck…

A: Risk aversion shows the characteristic of a person which represents his preference regarding a…

Q: • Which of the following is likely to have the most price elastic demand? a. eggs Ob. Demand for gas…

A: The price elasticity of demand is a measure used in economics to determine the responsiveness of the…

Q: 5. Find the MIRR (Modified Internal Rate of Return) of the following cash flows with an external…

A: The Modified Internal Rate of Return (MIRR) is a financial metric that takes into account both the…

Q: You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down,…

A: The indifference curve is the locus of points of two goods that give the same level of satisfaction…

Q: A movie monopolist sells to students and adults. The demand function for students is Qds = 600 -…

A: Price discrimination is a sales practise when customers are charged different prices for the same…

Q: Consider each scenario independently. In each of the following cases tell me, using written and…

A: Demand and supply are fundamental concepts in economics that describe the relationship between the…

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.