Graphically depict, with an optimal choice diagram (isoquants
and isocost lines), the shortrun and long-run input...
Graphically depict, with an optimal choice diagram (isoquants
and isocost lines), the shortrun and long-run input levels and
total costs of producing a given level of output.
Long Run Cost
Derive a firm's total cost curve by using a firms isoquants and
isocost lines(note:be sure to show what is on the axis,and the
values for all points and curves-the correct labeling and spacing
of the things is very mportant)for the case where the firm has
a)constant return to scale
b)decreasing return to scale
c)increasing returns to scale
d)For decreasing return to scale ,from the total cost
curve,derive the correct long run marginal cost curve and long run...
Use the AD-AS diagram to graphically illustrate the
short-run and long run impacts of an
increase in taxes on the price level and income. Write
down the impact of this policy on income, interest rate,
unemployment and investment.
Be sure to label: i. the axes; ii. the curves; iii. the initial
equilibrium levels; iv. the direction the curves shift; and v. the
new short-run and long-run equilibriums.
Demonstrate graphically and explain the short-run and long-run
effects of an unanticipated monetary expansion in the new classical
model. In your opinion, would the results change in the short-run
or the long-run if labour union was not in existence in the
economy?
In the long run, all costs are variable. Diagram and explain the
long-run average cost curve and what it means to have (i) economies
of scale, (ii) diseconomies of scale, and (iii) constants costs.
What factors contribute to these economies and diseconomies?
1. Draw the AD-AS model in long-run equilibrium. Using this
graph, depict what happens in the short run and in the long run if
housing prices fall across the country.
2. Draw the AD-AS model when the economy is initially
encountering an inflationary gap and then the government uses
contractionary fiscal policy to return to long-run equilibrium.
For each of the following, use the AD-AS diagram to explain the
short-run and long-run effects on output and inflation. Assume that
the economy starts in long-run equilibrium. a. Consumer confidence
increases. b. A reduction in taxes. c. A decrease in the money
supply by the Fed. d. A sharp, unexpected, increase in oil prices.
e. A war increases government purchases.
For each of the following, use an AD-AS diagram to show the
short-run and long-run effects on output and inflation. Assume the
economy starts in long-run equilibrium.
a. An increase in consumer confidence that leads to higher
consumption spending.
b. A reduction in taxes.
c. An easing of monetary policy by the Fed (a downward shift in
the policy reaction function).
d. Now, in addition to the increase in consumer spending,
suppose that the economy experiences a favourable inflation shock...
No Long-Run Economic Profits 1717 unread replies.1717 replies.
a) Explain & depict the LongRun equilibrium for a
monopolistically competitive firm. *Draw and upload graphs to
depict the long-run