Answer: The answers are given below
Explanation:
a. What is its percentage rate of return?
From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:
= $5.50/$50 × 100%
= 0.11 × 100%
= 11%
b. Is the firm earning an economic profit? If so, how large?
The economic profit will be the difference that exists between the percentage of return which is 11% and the normal rate of profit which is 5%. This will be:
= 11% - 5%
= 6%
The firm is earning economic profit of 6%.
c. Will this industry see entry or exit?
There will be entry into the industry. This is because the percentage of return which is 11% is greater than the normal rate of profit which is 5%.
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.
Answer:
False
The diamond-water paradox is illustrated by stating that the marginal benefit of the services provided by doctors and nurses is relatively lower than the marginal benefit of the services provided by major film stars. This implies that the supply of doctors and nurses is larger than the demand while the demand for major film stars is larger than the supply.
Explanation:
The marginal utility derived by film consumers from major film stars is higher than the marginal utility derived by patients from doctors and nurses. This is because consumers of the services of major film stars are willing to pay more for the services than consumers of the services of doctors and nurses. Though health is more crucial to life than films, but consumers place more utility value on films than they do on their health, especially after attaining the basic sound health. This actually explains the diamond water paradox, where consumers value diamond and are willing to pay more for diamond than they are willing to pay for life-sustaining water. In a layman's language, people are more willing to value the satisfaction they derive from one more additional film than they are to value the satisfaction they derive from additional healthcare. That means that people only care for the basic in healthcare. But, they can stake more to acquire more diamond.
Three basic economic questions are -
- What to produce?
- How to produce?
- Whom to produce for?
Economists study how households and businesses interact to produce the goods and services people need. They look at the factors of production, such as land, labor, and capital, and how they are combined to produce goods and services. Essentially, economists try to answer three sets of questions:
- What goods and services should be produced to satisfy consumer needs?
- How much of this product do you need?
- When should you produce a report?
- What is the best way to produce goods and services?
- How should these products be produced, and what resources should be used to do so?
- Who should be the recipients of goods and services?
- How should the product be allocated among consumers?
To learn more about Economics Questions from the given link
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What is the difference between federal purchases and federal expenditures? F<span>ederal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments. In this case, another way to remember the two are that federal purchase requires a purchase to be made for a good or service. A federal expenditure requires no purchase to be made but a transfer of payments to happen. </span>
Which security method involves coding your readable emails into a format that is illegible? Cryptography. Businesses and individuals will use cryptography to keep information secret. This makes it hard for people who want to crack information and decode information that they do not have access to.
