Answer: B) $16
Explanation:
First lets take down the data given to us;
access from a certain leading provider can be represented as p = 5 minusone half q i.e 5 - 0.5q
Using the concept of two-part terrific which is a monopolistic market system, it is type of price discrimination where the price of goods and services are of two section namely; a lump-sum fee (expensive) as well as a per-unit charge
.
Entry fees are set to be equal to the consumer surplus in the competitive equilibrium.
So we calculate our price and quantity in the competitive equilibrium first, marginal cost is equal to price
5 - 0.5q = 1
4 / 0.5 = q
q = 8
Now the intercept of the demand curve at the vertical axis is 5,
so the consumer surplus in the competitive equilibrium is:
M = (5 - 1) * 8 / 2
M = 4 * 4
M = 16
the monthly access fee will be equal to $16.
Answer:
b. countries can become better off by specializing in what they do best.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.
In this case, reluctant for taking changes when making investment best describes risk aversion from an economics stand point. If someone isn't sure the return on investment they would get from investing or the risks associated with investing in something, they are more hesitant to do that.
Answer:
productivity level per hour= 27 boxes per hour per shift.
Explanation:
Giving the following information:
company productivity per hour:
500 boxes in 20 hours= 25 boxes per hour
The new shift will increase 8 hours a day and 150 boxes. Therefore the new productivity per hour is:
productivity level per hour= 650/24 hours= 27 boxes per hour per shift.
A decline in interest rates is expected to put the economy in recession. This is because with less interest comes less money earned and less spending as a result.