Economics Answers

The law of diminishing marginal return applies to the short run only (ie to a situation in which at least one of the firm's inputs is fixed). true or false

If marginal cost is equal to zero, the total cost remains unchanged

True or false

Marginal cost reaches a minimum at a lower level of output than average cost does. True or False

Given the following function in two variables x and y

f(x, y) = x³y + 2x⁴ + y⁵

a. Find the Jacobean determinant at points P (3,2)

b. Find the Hessian determinant at points P (1,3)

When you a firms total revenue is less than its total economic costs, the firm is earning a normal profit only? True or false?

True or False

Marginal product reaches a maximum at a lower level of output than average product does.

Note, you will lose 50% of the mark for this question if you choose the incorrect option.

True or False

The essence of the law of diminishing returns is that the marginal product of a variable input will eventually decline from a certain point in the short run (because all or some of the other inputs are fixed).

True or False

Implicit costs are those costs which are not reflected in monetary payments, such as the salary a person gives up in order to start his/her own business.

Using the above two equations to find the values of Qd, Qs, the market situation

(Shortage/Surplus/Equilibrium), and the Value of shortage or surplus if any, at the

following prices: 3.044, 3.65, 3.88, and 3.95.

the equations are QS=972+103.5p Qd=1722-141.5p

Consider the market defined by the following demand (Pd) and supply (Ps) functions:

Pd=100−3Q and Ps=17+1,5Q,

where P and Q are the price and quantity respectively. What are the producer and consumer surplus of the product respectively? (Round off your final answer to the nearest integer.)