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4 years ago

2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?

Business

1 answer:

Novosadov [1.4K]4 years ago

4 0

Answer: The answer is D. The price of gasoline rises due to rising oil prices

Explanation: microeconomist study is based on the interaction of individuals or firms in an economy, rather than aggregate economic factors that affect a nation as a whole. Examples are inflation rate, unemployment rates, Per capital income, GDP etc

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What are natural resources referred to as an economics

AlekseyPX

The long-term viability of the food supply depends upon the sustainable use of natural resources. ... The field of Natural Resource Economics seeks to value natural resources to aid in the optimization of the production of goods and services from agricultural lands while protecting the environment.

7 0

3 years ago

A firm with market power faces the following estimated demand and average variable cost functions: Qd = 39,000 - 500 P + 0.4 M -

34kurt

Answer:

p = $62

Explanation:

the pictures herewith shows the whole explanation for the the work. Thank you and i hope the explanation works

7 0

3 years ago

In the short run, a firm in monopolistic competition ______. A. incurs an economic loss B. breaks even C. makes its output and

Dmitrij [34]

Answer:

D. always makes an economic profit

Explanation:

A monopolistically competitive markets consists of firms that sell differentiated products. In the market, there are free entry and free exist, but each firm enjoys a kind of monopoly its products which are the same to other products in the market but are different as a result of branding.

In the short run, the monopoly enjoys on the differentiated product enables the monopolistically competitive firm to make an economic profit. But due to free entry and exist in the market, the firm economic profit will be zero while it only make normal profit.

8 0

4 years ago

A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th

agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

6 0

3 years ago

There are several ways that central banks can increase or decrease the money supply. Match the descriptions below with the corre

kodGreya [7K]

Answer:

An increase in the percentage of deposits that bank must keep on hand- RESERVE REQUIREMENT

2. An increase in the interest rate that a central bank charges commercial banks for loans - DISCOUNT RATE

Open Market Operations - A central bank purchasing existing bonds.

1 and 4 are not instances of monetary policy

Explanation:

Monetary policy are policies taken by the central bank of a country to shift aggregate demand.

Tools of monetary policy

1. Open market operations : government can either sell bonds to the public, this is known as open market sales. this is an example of an contractionary policy or it can buy bonds from the public. this is known as open market purchase. it is an expansionary policy

2. Reserve Requirement : Reserves are the proportion of deposits required by the central bank that banks keep

If reserve requirement is increased, it is an example of a contractionary policy. If on the other hand, it is reduced, it is an example of an expansionary policy.

3. Discount rate : this is the rate at which the central bank lends to commercial banks. An increase in discount rate is a contractionary policy while an decrease in discount rate is an expansionary policy

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

Goals of monetary policy include

• financial market stability

• economic growth

• high employment

• price stability

3 0

3 years ago