Questions about opportunity costs

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1. Define opportunity costs?
2. Identify at least two non-monetary and monetary opportunity costs you forgo to attend classes online?
3. What is a Production Possibilities Curve (Frontier)?
4. How do you determine, which points are efficiency points on the Production Possibilities Curve (Frontier)?
5. Identify at least three points on the Production Possibilities Curve (Frontier) that are efficient points?
6. From the graph given below, Point W represents a(n) ______________________point.
7. Point X on the graph given below represents a(n) ________________________point.

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Tutor Answer

EngineerVlakoshvik
School: Cornell University

this is the final copy in case of any question feel free to ask?Thenk Youi

Part 1
Define opportunity costs?
Opportunity costs denotes the benefits a business errors out on when selecting one alternate
over another.
Identify at least two non-monetary and monetary opportunity costs you forgo to attend classes
online?
Non-monetary are the activities that do not entail me spending cash, with reference to the
online contexts I will have to spend more time in comprehending the course resources and
monetary opportunity costs are the, resources that will further cost me cash, like I will spend
money while I am purchasing and subscribing these resources.
What is a Production Possibilities Curve (Frontier)?

A production possibility curve validates the extreme output of two merchandises
spending a fixed quantity of input. The input is any combination of the four factors of
production.
How do you determine, which points are efficiency points on the Production
Possibilities Curve (Frontier)?
Precisely, at any points on the frontier, the business attains industrious efficiency: no
additional output of any good can be attained from the specified inputs deprived of
forfeiting output of around merchandises

Identify at least three points on the Production Possibilities Curve (Frontier) that are efficient
points?
Points that are either on or below the production possibilities frontier are possible
Points that are either above the production possibilities frontier are unattainable
Points that lie on the frontier are efficient

From the graph given below, Point W represents a(n) indicates inefficiency point.

Point X on the graph given below represents a(n) indicates impossibility point.

Cars

Plane
s

1,00
0

0

900

2

700

5

500

7

300

9

200

10

0

11

What are three ways in which the Production Possibilities Curve (Frontier) may shift to the
right?
Assuming the fact that resources are rare, we consume restraints that is whatever the curve
indicates. Therefore, when the economy produces and all extra belongings remain constant, we
can yield more, so this resolve source a change in the manufacture potentials curve to the right.

Explain why countries engage in trade?

States trade with each other when at solitary level, they do not devise the incomes, or
capability to content their individual wants and requirements. Hence, by cumulative as
well as deploying their local rare incomes, nations can yield a surplus, and trade it for the
incomes they want

Identify and discuss trade restrictions as they pertain to the United States? Identify at least
three reasons why the United States imposes trade restrictions on importing countries.

Revenue tariffs are put in place to raise cash for the government. Firstly, to halt
unemployment in America. Secondly, to protect crucial domestic industries. Thirdly, to
protect new infant industries in America.

1. In two or more sentences define, the Law of Supply?

This law state that when other factors remain constant, the prices as well as quantity supplies of a
good have a direct relation to each other. That is to say, when the price paid by the buyer for a
good goes up, then suppliers raises the supply of goods in the market. When the prices of good
goes up, the supplier increases the supply so as to earn a profit due to the higher prices.

2. In two or more sentences define, the Law of Demand?

The law of demand affirms that other factors being constant, the prices as well as quantity
demand of good and services are inversely connected to each other. In other words, when the
price of a product goes up, the demand for similar product will go down. The law of demand
illustrates the consumer choice with the changes in prices. This mainly occurs because a
consumer a reluctant to use more money out of fear of getting broke and so on.

3. Identify at least 4 determinants of supply?

i. Number of the Sellers
ii. Prices of the Resources
iii. Taxes as well as subsidies
iv. Technology.
v. Expectations of the Suppliers
vi. Prices of Related Products. ...

4. Identify at least 4 determinants of demand?

i. Price of the good and/or service.
ii. Buyer’s income
iii. Prices of related goods or services. ...
iv. Tastes and/ or preferences of consumers.
v. Expectations

5. In two or more sentences explain how the equilibrium point is determined?

The equilibrium points or price denotes where the quantity of the supplies is
equal to the quantity of the demand. This is simply the point at which demand
and supply reach an intersection. The equilibrium points is determined by
figuring out where the demand as well as the supply curves do intersect.

The graph below was constructed by using the values in the table as references.

Quantity Demanded Quantity Supplied Price
110

10

1

100

20

2

90

30

3

80

40

4

70

50

5

60

60

6

50

70

7

40

80

8

30

90

9

20

100

10

10

110

11

6. If Joshua has an increase in income, would the supply curve or demand curve shift and in
which direction or would there be movement along the demand curve? Please explain in
one to two sentences.

An increase in the income lead to the increased demand for goods or services. When the
income of Joshua goes up, the demand curve will shift to the right because of the
increased demand as well as purchasing power.

7. If taxpayers are given a tax credit for the purchase of electric automobiles, please
illustrate on the graph given below a shift in the supply or a shift in demand curve for
electric automobiles. Please state whether price will increase or decrease and whether
quantity

will

increase

or

decrease.

An increase in the tax credit would raised purchasing power of the consumer which in turn leads
to rise in the demand and shift the demand curve to the right. That is to say, for the rise in the
demand the supplier would augment the supply and shift it to the right.

8. If agricultural subsidies were cut, please illustrate on the graph below the direction or
movement of the supply or demand curve. Please state whether the price will increase or
decrease and whether quantitywill increase or decrease.

Halting agriculture subsidies will lead to a rise in the cost of the factors of the production
of the products. And this will make the supply curve to move to the left because of the

reduction in the supply of goods and services. The prices of agricultural goods will surge,
hence reducing their demands.

9. If tastes increase and taxes decrease, please illustrate the direction or movement of the
supply and demand curves and state whether price will increase, decrease, or remain at
the same level and state whether quantity will increase, decrease, or remain at the same
level.

With the increaing taste for commidity, there will be a relative surge in the demand. As a
result, a decrease in the price of the same will results to a decline in the prices. And this
will improves the purchasing power of the buyers, hence augment the demand
considerably. The supply as well as the demand curve will shift to the right because of
the favorable factors of production and reduction in prices.

10. If input costs decrease and income decrease by the same proportion, please illustrate the
direction or movement of the supply and demand curves and state whether price will
increase, decrease, or remain at the same level and state whether quantity will increase,
decrease, or remain at the same level.

When the cost of the input decrease, the production cost goes down as well. The lead to the
general decline in the cost of goods and services. The supply and demand curves shift to the right
in that case. When there is a reduction in the consumer income, their purchasing power reduces
hence the overall demands decreases. Nevertheless, when these new factors changes by the same

proportion, there is no change in the demand as well as supply because the negative change is
offset by a positive one.

What are the four different types of market structures?
1. Perfect Competition Market Structure.
2. Monopolistic Competition Market Structure
3. Monopoly Market Structure
4. Oligopoly Market Structure
In two or more sentences provide at least 3 or more characteristics that separate a perfectly
competitive market structure from a monopolistic market structure?
A perfectly Competitive Market all manufacturers donate unimportantly to the marketplace. Their
individual manufacture levels do not alter the supply curve. Whereas, Monopolistic competition, each
partaking a small share of the marketplace share and to some extent differentiated merchandises.
Which type of market structure has differentiated goods and services?
Monopolistic competition is dimensioned on the following rules:
All companies exploit incomes
Companies sell distinguished merchandises
Customers may desire one invention over the other.
Identify at least one market structure that is predominant in the United States?
In United States the Mall of America in Minnesota, is the prime shopping mall., the Mall of America
(2010) had 24 vittles that retailed ladies clothing, additional 50 vittles that retailed fashion for either
men as well as women, plus 14 extra vittles that sold ladies’ domain sartorial like Motherhood Maternity
and Victoria’s Secret. Most of the marketplaces that customers happenstance at the selling level are
monopolistically competitive.
At what point do all four market structures maximize profits?
Perfect rivalry designates a market edifice, where a large numeral of minor firms contend one another.
In this situation, a solitary firm doesn’t have any important market influence. Resulting to an industry as
a whole produces the informally optimal equal of output, since none of the companies have the ability
to impact market values.
In one to two sentences explain, how a monopolistic market structure determines its optimal price
and quantity?
To exploit output, dominations yield the capacity at which borderline quantity is equivalent to marginal
budget. Unlike any competitive firm, a monopoly can decline manufacture in order to increase price.
Which type of market structure faces a perfectly elastic demand curve?
All merchandises in a flawlessly competitive marketplace are deliberated to be perfect replacements, as
well as demand curve is faultlessly flexible for each of the insignificant, discrete firms that contribute in
the marketplace.
In two or more sentences, explain the difference between consumer surplus and producer surplus?

The customer surplus obtained via the difference amid t...

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Anonymous
awesome work thanks

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