(p. 191) ______________ theory is typically associated with greater profits. a. Signaling b. Compensating wage differentials C. Efficiency wage d. Human capital 4. (p. 193) Implications of _______________ theory are that pay level affects an employer's ability to recruit.
q1= (100-(10-3))/3=31 q2= 30 Q=31+30=61 Market Price=100-30-31=39 Firm’s one profit= 31*39-31*7=992 Firm’s two profit=30*39-30*10=870 c. Compare consumer surplus from parts a and b. Do consumers fare better with or without the subsidy? (Remember that consumer surplus is calculated from market quantity and market price.) The consumer surplus is bigger with subsidiary because they get more quantity with lower price while without subsidiary consumer’s surplus become smaller as they get less quantity with higher price. Chapter 11 6.
EGT-1 TASK 1 According to McConnell and Brue Marginal revenue constitutes the difference in total revenue incurred by the sale of one additional unit. So marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold, which is calculated as the change in TR/ the difference in Q (McConnell & Brue, 2008). The connection in marginal revenue and total revenue is based entirely on mathematics. The computation total revenue=price x quantity is the formula used to determine total revenue. Marginal cost as stated by McConnell and Brue is said to be the extra cost of producing 1 more unit of product; so the calculation for marginal cost MC is the change in total cost TC divided by the change in total
Week 1 Quiz (Chapters 1 & 2) Return to Assessment List Part 1 of 1 - | 100.0 Points | Question 1 of 10 | 10.0 Points | The branch of economics that examines the impact of choices on aggregates in the economy is: | | A.positive economics. | | | B.normative economics. | | | C.macroeconomics. | | | D.microeconomics. | | Answer Key: C | | | Question 2 of 10 | 10.0 Points | When we are forced to make choices we are facing the concept of: | | A.ceteris paribus.
c. Suppose government imposes a tax equal to the marginal external cost. What is the equilibrium price paid by consumers and the equilibrium quantity after implementation of the tax? d. At the output level in part (c), how much is the tax? e. How much tax revenue does government collect? f. What is the deadweight loss borne by society if the externality is left uncorrected?
The electricity cost was charged on a quarterly basis and charged back to each department on a quarterly basis also. The quarterly costs were September 2013 $13000, December $11000, March $10000 and June $11000. Retail Banking make payment of 100% of the cost up front as they are the controlling department. Retail Banking then process an adjusting entry to Commercial Banking’s cost centre for 30% of the expense and an adjusting entry to Financial Planning’s cost centre for 10% of the expense which together with its 60% obligation brings the total to 100%
Show on this diagram equilibrium relative price and gains from trade. Is it the total gain from trade between two countries? e. Use a diagram similar to Figure 4.8 in lecture notes to illustrate the e¤ect of trade on Foreign relative labor income, W=R. What does the StolperSamuelson theorem predicts about the e¤ect of trade on real income of capital and labor owners in Foreign? Verify that predictions of the StolperSamuelson theorem are satis…ed for Foreign country factors’market.
The relationship between marginal revenue and total revenue is the change in total revenue with respect to the variable change in quantity. Marginal revenue = demand MR = d(TR)/dQ, where Q is quantity. For each additional unit of output sold total revenue increases but only by the amount equal to the marginal price of the output unit. • As we increase the number of units sold which generate a positive marginal revenue, the total revenue increases (The total revenue increases when marginal revenue is positive) • When marginal revenue is zero the total revenue does not change and the total revenue is maximum (When MR = 0, TR Δ = 0) B. Define marginal cost Marginal cost is the total cost to produce an additional unit of goods sold.
Variable costs include raw materials, energy/ power and labour cost. Total revenue is represented by an upward sloping straight line curve. Average cost Marginal cost is the additional to total cost when output is increased by one or more units. The MC controls the average total cost curve and cuts this curve at its lowest point. Marginal cost The games console market is an example of an oligopoly.
B) The study of how consumers spend their income. C) The study of how producers decide what inputs to hire and what outputs to produce. D) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. E) The study of how consumers and producers meet each other at the market. Answer: D Diff: 1 Topic: Definition of Economics 3) Which of the following is a microeconomic topic?