Economics Question: Can you help with this?
Hi, I'm stumped on this question! Any help is appreciated: There are four consumers willing to pay the following: Consumer Willingness to Pay: R $8.00 O $7.00 J $5.00 M $2.00 And there are 4 salons with the following cost per cut: Business Haircut Price: A $3.00 B $6.00 C $4.00 D $2.00 Each business can produce no more than 1 haircut. 1. In the most efficient world, which companies should cut hair and which customers should get a haircut? (Note: It might be less than 4.) 2. How large is the maximum possible total surplus and what is the least possible surplus?
Economics Question, I appreciate any help?
Everything he does is labor so the government taxes his gross revenue rather than his net gross revenue. In other words, he has no cost of sales other than his labor which is all taxed. Maybe he has some costs like a welding generator, welding rods, etc. but all his profit or revenue is labor generated by him. He can't nor does he sell generators or welding rods at a profit.
Economics - Need Help With 3 Questions?
1. Under the unrealistic assumption that returns to variable inputs are constant the AVC would be horizontal. In reality productivity is limited by the amount of capital available. Using the classic simple example of a pizza kitchen (that's what my Intro prof. used I don't know about yours) a given pizza chef can make a set number of pizza in a set amount of time with a set amount of inputs (everything that goes into the pizza is a variable cost, including the labor). If the kitchen hired another chef it is safe to assume that they will have the same productivity (constant returns to variable inputs). In reality they are limited by the amount of counter space available and oven capacity (fixed inputs). 2. D. If a firm is realizing increasing returns to scale the price of their good should fall as they invest in more capital and increase production to take advantage of the economies of scale. 3. As oil becomes more and more scarce the price per barrel (ppb) will increase. As the ppb of oil increases the use of substitute inputs will become more economical. If substitute technologies for energy production have increasing returns to scale their increased use will eventually bring down their price and make the use of oil uneconomical as the prevailing market price for a given unit of energy from some other source will be lower. Thus, oil will fall out of favor as a source of energy before it is completely exhausted. The benefit of this is that a substitute for oil will presumably be cleaner to use and better for the environment. The obvious con is that energy will get expensive in the mean time.
Really stuck on these 3 economics questions, Help appreciated. THANKS?
Question 1. Which of the following statements is true regarding leakages and injections? A. Imports must equal exports since both are leakages. B. Saving must equal investment for the economy to be in equilibrium. C. Since leakages equal injections, aggregate income equals aggregate expenditure. D. Net taxes are an injection into the circular flow; net exports are a leakage. E.Government transfer payments must equal taxes because one is a leakage and one is an injection QUESTION 2. Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment. According to the circular flow model, the government's budget Answer A. must be in deficit B. must be in surplus C. must be balanced D. could be in a surplus or a deficit E. could be in balance or a surplus QUESTION 3 Which of the actions below will not increase GDP? A. Bears prowl suburban areas, overturning garbage cans so that the town must hire more sanitation workers to clean up. B. Vandals spray paint all over brick buildings, increasing business for paint removal services. C. An installer of automobile tires takes a knife to the tires of cars parked in his neighborhood. D. A homemaker spends $20 taking the family to lunch at Burger King instead of spending the $20 to buy food to prepare at home. E. A consumer has a tune-up done on his pick-up truck at the local garage. Just confused on my study guide.. THANKS!
I need help with this homework question in microeconomics...I would appreciate any help....?
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour. - Which country has the absolute advantage in the production of each good? Which country has the comparative advantage? - If England and Scotland decide to trade, which commodity will Scotland trade to England? - If a Scottish worker could produce only 1 sweater per hour, would Scotland will gain from trade? Would England still gain from trade?
Macroeconomics Help! 5 questions.?
I need a little help with some of these economics questions. Any help is appreciated. Thanks. 1. True or False: Macroeconomics shows that economies grow when their factors of production increase in quantity. 2.True or False: If during a year prices increase by 5% and your nominal salary increases by 4%, you can say that your real salary has decreased by about 1% 3.Improvements in technology have reduced the cost of producing personal computers. As a result, you accurately predict that in the market for personal computers, there will be a(n): a. increase in quantity supplied of personal computers, a reduction in the price, and an increase in quantity demand. b. increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded. c.increase in the supply of personal computers, a reduction in the price, and an increase in the demand. d. decrease in the supply of personal computers, an increase in the price, and a decrease in the demand. 4.An increase in the equilibrium price of a good could be the result of: a. an increase in supply b. a decrease in supply c. a decrease in demand d. a shortage 5. A change in the quantity demanded is caused by a change in: a. consumers' income b. consumers' tasks and preferences c. the price of the product d, the prices of other products
Economics Question. Help Please!?
When an economy is at potential output, it's going flat-out at the peak. This means that inflation is starting to creep up. As the economic advisor, you want to promote policies that will lower output Q and price P. The worst policy is that which tries to increase both P and Q. Check out investopedia.com and search for demand and supply shock. The graphs and description on how they shift due to different shocks will tell you the impact of each type of shock, and what it does to price and quantity.
Economics Question Please Help!?
Reducing competition is what incumbents -- be they corporate or union -- always try to get government to do for them. Economists, as you say, call it "rent-seeking". BTW, Microsoft is not a monopoly. You must not know much about that industry. I do. MSFT has lots of competition and it is getting more intense all the time.
Need Macroeconomics help!?
I need help with a difficult Econ question. Any help is appreciated! Suppose that Apple Pay becomes extremely common and easy to use, so that people need to hold even less money in order to carry out transactions. Depict the effect this will have on Liquidity Preference market for money in the short-run. If the Federal Reserve wants the interest rate to remain unchanged, what kind of open market operations should they carry out? Depict the effect of this open market operation on Liquidity Preference market for money in the short-run. And then, depict the effect the introduction of Apple Pay will have on Liquidity Preference market for money in the long-run without considering the Fed’s open market operation.
Help with an Economics problem?
I need help with an economics problem, any help would be appreciated! The money multiplier is an inverse of the reserve ratio. The Spending multiplier is an inverse of the marginal propensity to save. Describe in DETAIL how the two multipliers work and the role that the MPS plays that is similar to that of the role that the Reserve Ratio plays in their respective multiplier processes.