How would you sell me a computer? What would you say

Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolisticall

blondinia [14]

Answer:

The total number of firms in this industry will decrease in the long run because increased competition will mean lower profit margins which will lead to some firms earning sub normal profits which will force them to leave the industry.

Explanation:

3 0

3 years ago

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

Katen [24]

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1: Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products Quantity Price

Shoes 40 $60

DVDs 100 $18

Tomatoes 2,000 $1

Ketchup 300 $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

Answer to the First Question

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

Answer to the Second Question:

Nominal GDP represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households) + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

= $6,400

5 0

3 years ago

Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He

Yuliya22 [10]

Answer:

The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.

Explanation:

The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.

Congress can enact laws that regulate interstate commerce, and this law is an example of one of them. It doesn't matter if Milton's action only affect commerce in a very small way, the law is still constitutional.

6 0

4 years ago

Allison will graduate from high school next June. She has ranked her three possible post-graduation plans in the following order

Dmitrij [34]

Answer:

tutoring opportunity cost: 20,000 consulting job

consulting job opportunity cost: 5,000 + travel from tutoring

collegue: 20,000 consulting job

Explanation:

opportunity cost: cost of the best rejected project, proposal or income

income from work as a consulting job: 20,000

income from tutoring: 5,000 ( externality of travel around the world)

collegue cost of 5,000

The tutorng has an externality of travel around the world. We can measure how much Allison values that chances but it is something she will consider when picking her plan.

6 0

4 years ago

The process of exchange of goods or services from sellers to buyers is referred to as:

aliina [53]

Answer:

Marketing

Explanation:

Hope this helps!

3 0

2 years ago