Economics Answers

Suppose a firm produces 15 units per month and it has a total variable cost of 15000 per month. If its average fixed costs are 350 per month, what are its total costs per month

Which of the following cost curves does not have a shape that is explained by the law of diminishing returns

Which statement is true about the law of diminishing returns

is this statement correct implicit costs are monetary payments for the factors of production and other inputs bought or hired by the firm

is this statement correct the short run is a time period of less than one year

A decrease in demand for USa dollar in the South-African foreign exchange market would be the result if there is 1) A decrease in the South-African export to the USA.2) A decrease in the gold price to South-Africa,3) A decrease in the South-African tourist to the USA.4) A decrease in the USA tourist to South-Africa.

To see what is going on, economists often “adjust” the data to reflect changes in the economy. For instance, in the text, we discussed the adjustments in dollar amounts made to correct for inflation. Another adjustment that is frequently made is to take into account the increase in population. What adjustments might you make in looking at education expenditures? At Social Security expenditures?

Given a production function q=AL0.5K0. What are the return to scale for such a production function

In these questions, let's assume that all the people involved have the same income.

a) What type of people are more likely to eat resturaunt meals? TV dinners? Why?

b) Why do some people tip? Eat too much? Smoke?

c) Why do some people give charity? Are you more likely to give charity to a down on her luck FIT graduate or a equally poor down on her luck Brooklyn College grad? Why?

Would increasing the equality of income in the country necessarily increase the total utility of the country? Explain.

Hints:

(a) consider what different people use their money for: food, medical care on the one hand and luxuries on the other. Which gives more total utility? marginal utility?

(b) Read the posted readings before you answer this discussion question