Effect on gold consumption and mining

Assignment Help Business Economics

Reference no: EM137786

Q. Suppose the consumption of gold offers people a marginal utility that diminishes as that person consumes more gold. Assume also that gold can be mined in unlimited amounts at the constant marginal cost, , units of the non-gold consumption good. a. Can the trading value of gold exceed in equilibrium? Explain. What is the effect on gold consumption and mining of an increased use of gold as money? b. Suppose instead that the marginal mining cost increases with the amount mined. What is now the effect on gold consumption and mining of an increased use of gold as money?

Reference no: EM137786

Questions Cloud

Demand curve expressions : Based on the information conveyed by the demand curve expressions, how would you explain the price difference between the two meals.

How many visible-light photons are emitted : If the average frequency emitted by a 200,-, rm W light bulb is 5.00 times 10^ {14}, {rm Hz}, and 10.0 percent of the input power is emitted as visible light, about how many visible-light photons are emitted per second.

Consumer surplus as well as industry profits : Analyze the equilibrium cost and quantity in this case and label it on your graph. Moreover calculate, deadweight loss, consumer surplus as well as industry profits.

What is the mass of the sculpture : A heavy piece of hanging sculpture is suspended by a 146.0 cm long, 8.03 gm wire. When the wind blows hard, wire hums at its fundamental frequency of 113.0 Hz. What is the mass of the sculpture (in kg) assume that the local acceleration due to gravit..

Effect on gold consumption and mining : What is now the effect on gold consumption and mining of an increased use of gold as money.

Find the appropriate null hypothesis for these data : Assuming the nurses surveyed were a simple random sample from the population of all nurses in the United States, find the appropriate null hypothesis for these data

Find out the wavelengths of the light : A 16 cm x 16 cm square loop of wire lies in the xy-plane with its bottom edge on x-axis. The resistance of the loop is 0.490 ohms. A magnetic field parallel to the z-axis is given by B= 0.830 y^2 t, where B is in tesla, y in meters, and t in seconds...

Benefit-cost analysis of a government policy : Explain the steps that would be used to conduct a Benefit-Cost Analysis of a government policy to alleviate the problem.

What is the heaviest weight : A 346-, uniform, 1.04- bar is suspended horizontally by two vertical cables at each end. Cable A can support a maximum tension of 506.0 without breaking, and cable B can support up to 436.0. You want to place a small weight on this bar. What is the h..

User Account

All Pages