Explain the difference in the language of economics

Assignment Help Business Economics
Reference no: EM131169402

After paying $1.00, you are allowed to open a newspaper vending machine (i.e. get as many as you want, theoretically). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money.After paying $1.00, you are allowed to open a newspaper vending machine (i.e. get as many as you want, theoretically). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Please explain the difference in the language of economics.   

Reference no: EM131169402

Questions Cloud

Construction costs for the runway extension are projected : The city of Bugnussle is considering exceeding the runways of its municipal Airport so that commercial jets can use the facility. The land necessary for the runway extension is currently farmland which can be purchased for $350,000. Construction cost..
Two identical firms save money from polluting : Two identical firms save money from polluting. A firm’s marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. What are the transfer coefficients for each of the two fir..
New polluters into the city without reducing air pollution : In the 1970s in U.S. cities, air emissions were governed almost completely by prescriptive regulations. One of the problems faced by regulations in large urban areas with air quality well below desirable levels was how to let new polluters into the c..
How many workers are demanded and employed now : Let's assume production is given by Yt=AK^(1/3)L^(2/3). Capital stock has reached its steady state at K= 1000 and A= 3/2. Assume there are no frictions/rigidities unless otherwise stated.  What does our long-run model say the level of unemployment (U..
Explain the difference in the language of economics : After paying $1.00, you are allowed to open a newspaper vending machine. In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. In contrast, a soft drink vending machine only drops one can after you pay t..
One assumption of the supply and demand model : One assumption of the supply and demand model is that all goods that are bought and sold are identical. Why do you suppose economists commonly make this assumption? Does the supply and demand model lose its usefulness if goods are not identical?
How can we get sustained growth in solow model : How can we get sustained growth in Solow model? Is it possible to achieve it by increasing saving? Or do we need something else? What is MPS in Solow model? What is MPC? Define investment per capita (in terms of capital per capita) in Solow context.
Mandate is to maintain the price level at constant value : Suppose you are the head of the central bank and your mandate is to maintain the price level at a constant value. Explain what you would do to the money supply in response to each of the following events:
What is the implicit cost : A firm produces 8000 units of output, which it sells for $1.50 each. It produces this output using only labor and capital, and pays $7000 to its labor and $1500 to its capital. The firm's owner feels she could make $4,000 working somewhere else. What..

Reviews

Write a Review

Business Economics Questions & Answers

  What are n predictions of model

Reasonable to assume that disutility of pollution is related to flow of new pollutants and it is thus adequate to use a static model. What are n predictions of model.

  What will be her profit-maximizing price

If the seller cannot discriminate, but must charge the same price p1 = p2 = p to each group, what will be her profit-maximizing price? Which, if any, consumer group benefits from price discrimination?

  Why do you suppose r was included in the equation

Why do you suppose R was included in the equation as a variable? If you were a supplier to the furniture manufacturer.

  Contractor should pay to purchase the crane

A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 21% of its initial cost. The cost to operate and mai..

  What quantity of the public good would be produced

There are three consumers of a public good. Where MWPi (i=1,2,3) is in dollars per unit and Q is the quantity of the public good. The marginal cost of the public good is $180. What is the efficient level of production of the public good? If the three..

  A good is not depletable

A good is not depletable if:

  Convert cash flow profile to an equivalent gradient series

A cash flow profile starts with $2,000 and increases by $1,000 each year up to $21,000 at time 20. Then, it starts again with $21,000 at time 21 and decreases by $1,000 each year to $2,000 at year 40. Convert the cash flow profile to an equivalent gr..

  Curves in the aggregate demand aggregate supply

What are the three curves in the Aggregate Demand Aggregate Supply (AD/AS) model? What are their shapes? What relationships do they each represent?

  Long run equilibrium price of oil as world demand expands

Do you think that the long run equilibrium price of oil as world demand expands will behave in a fashion similar to the long run equilibrium price of motorcycles as world demand for them expands?

  Perfectly competitive firms average fixed cost function

A perfectly competitive firms average fixed cost function is AFC = 30/Q, its average variable cost function is AVC = 6 + 0.1Q, and it marginal cost function is MC = 6 + 0.2Q. The firm optimizes by producing the level of output that maximizes profit o..

  Explanation for why labor supply curve is upward sloping

Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour. What is one explanatio..

  Possible optimal consumption bundles for the consumer

An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd