and the marginal cost is 2R. If the committee wants to maximize the net benefit from reducing acid rain‚ what is marginal cost at the optimal level of reduction? Answer Selected Answer: d. $400 Correct Answer: d. $400 • Question 4 1 out of 1 points Which of the following will cause an increase in consumer surplus? Answer Selected Answer: b. a technological improvement in the production of the good Correct Answer: b. a technological improvement in the production
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$30‚000 $1‚000‚000 $124‚000 Capitalize the lesser of avoidable interest; therefore‚ capitalize the avoidable interest of $30‚250. The journal entries would be as follows: 1/1 Cash 200‚000 NP 200‚000 Building 100‚000 Cash 100‚000 4/30 Building 150‚000 Cash 150‚000 11/1 Building 300‚000 Cash 300‚000 12/31 Building 100‚000 Cash 100‚000
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Labour Output VC TC AFC AVC ATC MC 0 0 $ 0 25 ---- ---- ---- ---- 1 4 25 50 6.25 6.25 12.50 25 2 10 50 75 2.50 5.00 7.50 25 3 13 75 100 1.92 5.77 7.69 25 4 15 100 125 1.67 6.67 8.33 25 5 16 125 150 1.56 7.81 9.38 25 a. Calculate the TC‚ AFC‚ AVC‚ ATC‚ and MC‚ and complete the table with your calculations. (5 marks) b. Compared to other markets‚ why do economists consider perfect competition to be the most efficient market structure? (4 marks) In a perfect competition market price always equals the
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The Power of Markets: Who feeds Paris? Two basic assumptions that economists make about individual and firms are that all individuals act in a way to make themselves as well- off as possible. For example‚ individuals make the best use of their utility and skill‚ so they can earn more money. The second assumption is that firms always try to maximize the money they earn. For example‚ if an entrepreneur had two business choices that he could make‚ he would pick the business choice that he thinks
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Everyone’s Gasoline Problem: As we all know that the price of gasoline is definitely driven by the concept of supply and demand. Never the less prices fall‚ quantity demand will rise‚ when price rises‚ quantity demanded will fall. Usually this is a true statement in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest
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about a month ( ) 2 – 3 months ( ) 4 – 5 months ( ) 2) How often do you visit Tutti Frutti? Every day ( ) At least once a week ( ) Every two weeks ( ) Once a month ( ) 3) What days do you visit Tutti Frutti the most? (You may tick more than one) Mondays ( ) Tuesdays ( ) Fridays ( ) Sundays ( ) Wednesdays ( ) Thursdays ( ) Saturdays ( ) 4) What time of the day do you visit the most? Between 8am – 11am
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investment d. security • 3. A contract that makes the owner of a security a part owner of the company that issued the security is known as a(n) ________ security. a. debt b. equity c. bond d. economic • 4. A payment (or series of payments) made by the borrower to the investor in a debt security in addition to repayment of the principal is called: a. maturity. b. interest. c. dividend. d. bonus. • 5. A dividend is the periodic
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Chapter I 2. To mitigate agency problems between senior executives and shareholders‚ the compensation committee of the board should devote more to long term incentives; the idea is to align the pocketbook interests of managers directly with those of stockholders‚ and the reason is to motive a manager and make him or her to act in the interests of the firm’s stockholders depends on the structure of his or her compensation package‚ the threat of dismissal‚ and the threat of takeover by a new group
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CHAPTER 1 INTRODUCTION “Mangroves live life on the edge” (Warne‚ 2007). Some parts of the mangrove roots are submerged on the water and the other parts are on the land. The mangroves serve as a support system to biodiversity. However‚ according to World Wild Fund or WWF (n.d.)‚ the world already lost more than 35% of its mangrove forest. Mangroves are also responsible for carbon sequestration. According to United States Environment and Protection Agency (n.d.)‚ carbon sequestration is capturing
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1. From the definition of GDP we arrive at the following expression: c + i + g + x-m = y = c + s + t Discuss the three important economic relationships that can be derived from this expression related to the definition of GDP and explain each carefully. The expression above depicts two different ways to come up with real GDP for a country. The left side of the expression explains expenditure side of computing real GDP which can be rewritten as: y = c + i + g +x – m In real terms‚ it could
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