Reference no: EM1374469
1. Using the ideas of marginal costs and marginal revenues, describe why economic profits are maximized where marginal revenue equals marginal cost and why profits decline if the price is above or below the profit maximizing price.
2. Using the concepts of demand, supply, equilibrium, and price ceilings, explain why a shortage occurs when the price is too low (below equilibrium).
3. Using the concepts of supply, demand, equilibrium, shortages, surpluses, and price, explain why "price gouging" is not possible in economic theory.
4. Explain the difference between economic profits and accounting profits.
5. Using the concepts of relative elasticity and relative inelasticity, explain price elasticity of demand.
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Deficit in the current account balance
: The United States dollar exchange rate can be affected by changes in the current account, capital account and official reserve transactions.
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Expansionary monetary policy in the usa
: A South America nation with fixed exchange rate system has close economic ties with USA symbolized through extensive trade and unrestricted flow of capital between two nations.
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Concepts of opportunity cost and substitution effect
: Assume that the following table describes prices, incomes, and per person lobster consumption in three United States cities.
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Find the demand curve
: Yearly demand and supply for the Entronics corporation is given by: Qd= 5,000 +0.5I+0.2A-100P and Qs=-5000=100P where Q is the quantity per year,
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Concepts of marginal costs and marginal revenues
: Using the ideas of marginal costs and marginal revenues, describe why economic profits are maximized where marginal revenue equals marginal cost and why profits decline if price is above or below the profit maximizing price.
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Determine the maximum level of net benefits
: Assume total benefits and total costs are given through B(Y) = 100Y-8Y(squared) and C(Y)=10Y(squared). Determine the maximum level of net benefits?
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Shift of the aggregate demand and supply curve
: Estimate whether each of the following would cause a shift of the aggregate demand curve, the aggregate supply curve, neither, or both.
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Comparing the size of economies to the gdp of the us
: What specific standard is applied to a firm whose only contact with a forum state is through its Internet site? If you had an eBusiness, what could you do in order to limit your liability to suit in multiple jurisdictions?
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Demand and supply to determine surplus
: Demand and Supply curves. The following relations explain demand and supply conditions in the wheat industry:
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