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How does negative externalities lead to market failure in sugar market?
Need a diagram to support the answer
10 marks
Need a diagram to support the answer
10 marks
An open macroeconomic model for a hypothetical economy is represented as follows
Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd, T=tY and Yd=Y-T
a. Show that equal change in tax and government expenditure are expansionary to the economy
b. Government Expenditure = Multiplier
c. Derive the equilibrium level of savings in the economy above
Y= C0 +Io+Go+X0-M, M=mo+m1yd,C=co+c1yd, T=tY and Yd=Y-T
a. Show that equal change in tax and government expenditure are expansionary to the economy
b. Government Expenditure = Multiplier
c. Derive the equilibrium level of savings in the economy above
Economics
Swagat Manufacturing Sdn. Bhd. needed to determine if it would be cheaper to make 10,000 units of a component in-house or to purchase them from an outside supplier for $4.75 each.
Cost information on internal production includes the following:
Total Cost Unit Cost
$ $
Direct materials 10,000 1.00
Direct labour 20,000 2.00
Variable overheads 8,000 0.80
Fixed overheads 44,000 4.40
Total 82,000 8.20
Fixed overhead will continue whether the component is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price.
Required:
a) List the relevant cost of internal production and external purchase.
Cost information on internal production includes the following:
Total Cost Unit Cost
$ $
Direct materials 10,000 1.00
Direct labour 20,000 2.00
Variable overheads 8,000 0.80
Fixed overheads 44,000 4.40
Total 82,000 8.20
Fixed overhead will continue whether the component is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price.
Required:
a) List the relevant cost of internal production and external purchase.
Most of the cost of a flat screen TV involves the LCD panel. Globally, 220 million flat screen TVs were sold in 2011 for $115 billion. Although scale economies in massive factories and volume discounts on electronic input components have driven the cost of LCDs down from $2,400 to $500 the last decade, the price has fallen even faster. In 2001, the average selling price of a large LCD panel was over $4,000. By 2011, this price had fallen below $600. Sony Corporation finds its flat screen TVs now fail to cover the full cost of the LCD panels and instead impose a $126 ($500 - $374) loss per TV sold. Nevertheless, the indirect fixed costs of the LCD factories including Korean Samsung, Japanese Sharp, Panasonic, and Sony constructed are partially covered by operating (continue production). Losses would be greater in the short run if they shut down.
What would you advise SC in light of the competition from the other manufacturers?
What would you advise SC in light of the competition from the other manufacturers?
Most of the cost of a flat screen TV involves the LCD panel. Globally, 220 million flat screen TVs were sold in 2011 for $115 billion. Although scale economies in massive factories and volume discounts on electronic input components have driven the cost of LCDs down from $2,400 to $500 the last decade, the price has fallen even faster. In 2001, the average selling price of a large LCD panel was over $4,000. By 2011, this price had fallen below $600. Sony Corporation finds its flat screen TVs now fail to cover the full cost of the LCD panels and instead impose a $126 ($500 - $374) loss per TV sold. Nevertheless, the indirect fixed costs of the LCD factories including Korean Samsung, Japanese Sharp, Panasonic, and Sony constructed are partially covered by operating (continue production). Losses would be greater in the short run if they shut down.
Use relevant graphs to explain the above phenomena. You are required to search for appropriate data to support your answers.
Use relevant graphs to explain the above phenomena. You are required to search for appropriate data to support your answers.
The economy of Kenya has a budget deficit of KSH 500B and debt of 2.9 trillion. Using an appropriate model, explain the macroeconomic implications of such a debt and a deficit.
Economics
(b) There are 3 bowls A, B and C contains chips. Bowl A contains two red and four white chips, B contains one red and two white chips and C contains five red four white chips. The probability of selecting the bowls are p(A) = 1/3, P(B) = 1/6 and P(C) = ½. A chip is selected and found to be red. Find the probability that it comes from
i. Bowl A
ii. Either bowl B and C
i. Bowl A
ii. Either bowl B and C
Economics
I'm implementing a multinomial logit model but I have a
problem regarding price variable. Let's say the choice set
has 4 alternatives. Each alternative are characterized by
different attributes one of which is price. Each alternative
has its own price:for example alternative from 1 to 4 has
price (10,20,30,40). For some people (student for example)
price are discounted of 50%, so the price of the alternatives
are (5,10,15,20). In such a case how it is possible to treat
the price variable? Interact the price with a discount
variable?Put as explanatory variable all the different price
categorie (e.g full price, price children, price senior…)?
Consider only the full price and set a dummy variable for the
category? Thank you
problem regarding price variable. Let's say the choice set
has 4 alternatives. Each alternative are characterized by
different attributes one of which is price. Each alternative
has its own price:for example alternative from 1 to 4 has
price (10,20,30,40). For some people (student for example)
price are discounted of 50%, so the price of the alternatives
are (5,10,15,20). In such a case how it is possible to treat
the price variable? Interact the price with a discount
variable?Put as explanatory variable all the different price
categorie (e.g full price, price children, price senior…)?
Consider only the full price and set a dummy variable for the
category? Thank you
Using appropriate model, illustrate the effect of an expansionary fiscal policy in an open economy operating in free exchange rate regime .Assume perfect capital mobility. What is the effect if the government uses monetary policy alternatively?
a. The Balance of payment deficit is not a problem in a free exchange rate regime? Explain.
b. In a fixed exchange rate regime, monetary policy is ineffective? Is this true? Explain using the mundell- fleming model
a. The Balance of payment deficit is not a problem in a free exchange rate regime? Explain.
b. In a fixed exchange rate regime, monetary policy is ineffective? Is this true? Explain using the mundell- fleming model
what role do countries play in the position of their currency in the world market?
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#333702 on Dec 2022
#333702 on Dec 2022