Diminishing marginal returns

Diminishing marginal returns occur because: A) increasing amounts of a factor are added to fixed amounts of other factors of production. B) the marginal product of labor just equals the marginal utility of leisure. C) more workers employed in a plant will talk more and produce less. D) total product must eventually f ...continues

Housing market

Why is the government concerned about the level of home ownership in the community? Suggest some economic and social factors?

Housing market intervention

Q1)Should the government intervene directly in the market for housing and to promote home ownership? Justify your answer. Consider some of the options available for intervention and explain their strengths and weakness. [SEE ATTACHED FILE 1 (OVERVIEW)TO SEE REPORT THIS QUESTION IS REFERRING TO]

Costs of regulation

Market demand and cost revenue relations: P=$5000 -$0.25Q MR=$5000 - $0.5Q^2(squared) TC=$6,000,000 + $500Q +$0.5Q^2(squared) MC+$500+$1Q Marginal cost: $150 per unit, OSHA mandated safety feature A. Calculate profit-maximizing price/output combination and economic profit level before installation of the OSHA mandated shie ...continues

Monopoly regulation

Cable co: Demand curve for monthly service: P=$37.50 -$0.0005Q.This implies annual demand and marginal revenue curves of: P=$450 -$0.006Q MR=$450-$0.012Q where P is service in dollars and Q is no. of customers served.Total and marginal costs per year(before investment return) are described by the function: TC=$4,275,000+$ ...continues

Concentration Ratio

Concentration ratios: A. overstate the relative importance of firms in local markets B. ignore potential entrants C. measure the degree of buyer concentration D. understate the relative importance of domestic firms when import competition is important Which answer makes the most sense and why?

Relative employment levels

When Px=$60, MPx=5 and MPy=2, relative employment levels are optimal provided: A.Py=16.7cents; B.Py=$24; C.Py=$60; D.Py=$150 Could you please explain how to do this calculation?

Productivity

If the productivity of variable factors is decreasing in the short-run: a. marginal cost must increase as output increases b. average cost must decrease as output increases c. average cost must increase as output increases d. marginal cost must decrease as output increases

Income Elasticity

During the past year,MP sold 150,000pairs of brake shoes at an average wholesale price of $13per pair. This year, GNP per capita is expected to fall from $21,000 to 19000 as nation enters a steep recession. Without any price change, MP expects current year sales to fall to 100,000. a. Calculate the implied arc income elastici ...continues

Costs of regulation

Holding supply conditions constant, the costs of regulation fall wholly on producers when: a. Ep= infinity b. Ep_>(greater than or equal to)1 c. Ep=1 d. Ep=0