Explain Transaction Cost Analysis.

16. The natural rate of unemployment
(x) varies over time, but can’t be changed by the government.
(y) is the unemployment rate that the economy tends to move to in the long run.
(z) does not depend on the rate at which the Fed increases the money supply.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

17. According to the natural rate hypothesis (Friedman and Phelps), in the short run the economy will move to
a point on the Phillips curve where the unemployment rate is higher if,
A. the inflation rate decreases.
B. the government decreases taxes.
C. the Fed decreases the money supply.
D. All of the above
E. A and C, only

Find and provide example of Cartel as a type of Oligopoly. Has any cartel ever existed in all times in any country?
a)   Define Oligopoly and briefly describe its main conditions
b)   Define Cartel and briefly describe the main aims of cartel
c)   Describe and explain the outcomes of Cartel related to 2 areas:
d1) outcomes for sellers (good/bad, gain/loss)
d2) outcomes for consumers (good/bad, gain/loss)

There's a country with 1 company and 1 person.

A company's labor demand by matching MPN is w=B which is perfectly elastic

total time h=N+l , N for work time and l for leisure time

C is consumption.

to maximize a person's utility, U(C,l) = C^(1-a)l^a

desired C is (1-a)(w*h+b)

desired l is (a/w)(w*h+b)

labor supply curve is (1-a)*h-(a*b)/w

labor demand curve is B

is there anything wrong in this question? and verify this by matching aggregate supply and demand curve

Firms A and B are in a market of fixed size (Size = 1), developing a product for their customers. The more R and D they undertake i.e. the more time they spend, the better product they are able to launch in the market. However, the firms are facing a constraint; whoever launches their product first, will gain a market share of customers that cannot be transferred to their opponent. In this case the opponent will obtain the remainder of the customers in the market. If both A and B launch their product at the same time, the share of customers will be equally divided amongst them. Each firm has to choose time t at which they will launch their product in the market. The share of customers in the market is defined by the function f(t)=t where f(0)=0 and f(1)=1 (The share of customers in the market is a function that increases over time with the lowest share being 0 and the maximum share of customers equal to 1). Assume time and hence market share of customers is perfectly divisible over the spectrum of time defined as t = {0..............1}. Hint: This means that any fractional amount of time and hence market share is possible 1/3,1/4, 1/6 etc,

Kindly post the steps in detail

what is the microeconomics concept or model that explains below behavior. explain.

1) company A, a competitor of B in the same market segment nevertheless supplies Company B with many of the components that B needs.

2) controversy in spain last year over the payment of a tax on the creation of mortgages. In response to popular pressure, the govt decreed that this tax be paid entirely by the bak from now on, and not by consumer. Banks did not push back against this policy change, despite many folks views that they have a strong case if they chose to fight the government decree in court

3) while country A has emerged as a world leader in the design and production of industrial robots, most of its production is sold internationally, with less than 1% purchased by manufacturing companies in the country A. In fact, robot statistics show a very low degree of automation of the manufacturing industry in country A: 0.0003 robots/worker, as opposed to 0.0085 worldwide, 0.02 in US or 0.03 in japan.

Suppose a consumer’s demand function for a bar of chocolate produced by your firm is given by P=1-0.2Q. The firm’s cost is represented by the cost function of C(Q) = 0.2Q (assuming constant marginal cost and zero fixed cost).

(a) Under the normal uniform pricing strategy, what are the profit-maximizing quantity,

price, and profit?

(b) How can you increase your profit by block pricing/package deal? Show the solution

graphically.

(c) Despite your answer in (b) above, what are the possible reasons why the suppliers

might still charge a uniform price rather than using other pricing strategies?

(d) “A way to extract buyer surplus is to use block pricing, but when we observe block pricing in the real world, we should not conclude immediately that it is adopted for the purpose of extraction of buyer surplus.” Explain the meaning of this statement.

Give some real-world examples to illustrate your explanation.

How do people compete to obtain goods and services when the market system allocates them?

How does government protection of property from theft and destruction help the market system work bette

Why did productivity increase when the villagers in Xiaogang China privatized their land?

Question 01: Explain with examples what is the positive and nominative Economics.

.

Question 02. Game theory is the study of multi- player decision making in situation where the choices of each player may affect the pay-offs received by other players. Arrange how many types you can categorized Game Theory.

.

Note: Plagiarism is strictly prohibited please do not copy from internet and give the answer in detail

There's a country with 1 company and 1 person.

A company's total production, which is country's real GDP, is Y=B* N+b

A company's labor demand by matching MPN is w=B which is perfectly elastic

total time h=N+l N for work time and l for leisure time

C is consumption.

to maximize a person's utility, U(C,l) = C^(1-a)l^a

desired C is (1-a)(w*h+b)

desired l is (a/w)(w*h+b)

labor supply curve is (1-a)*h-(a*b)/w

labor demand curve is B

if there's a tax rate t and its tax revenue twN is a government revenue.

Show how this new tax will influence real gross domestic product and a person's desired consumption

A statistical cost analysis has revealed that Robertson Rotorcraft Company’s long-run cost is: ??(?)=0.0004?3−0.48?2_+432?, where ? is the number of helicopters it produces per year and ? is its (total) cost in thousands of dollars. This implies that the firm’s long-run marginal cost is ??(?)=0.0012?2−0.96?+432. This year, due to short-run commitments and standing contracts with suppliers, the firm’s short-run cost has been estimated as ??(?)=0.0012?3−1.2?2+432?+86,400, which implies the short-run marginal cost ??(?)=0.0036?2−2.4?+432. All costs are expressed in thousands of dollars. Let ? be the price at which the company sells helicopters. a) What is this firm’s minimum efficient scale of production (MES)? b) How low can the price ? go before it is optimal for the firm to shut down in the short run (this year)? c) If the firm expects demand for helicopters to fall to a point where it will no longer be possible to sell helicopters for a price higher than $250,000 for the foreseeable future, should this firm plan to shut down in the long run (next year and beyond)?

I attempted a) MES=600. b) price $132. c) not sure  

Can you tell me if my answers a) and b) are correct and also can you help with c)

To predict the probability of default on their bond obligations, Daniel Rubinfeld studied a sample of 35 municipalities in Massachusetts for the year 1930, several of which did in fact default. The LPM model he chose and estimated was as follows:

P= 1.96 -0.029 TAX - 4.86 INT + 0.063 AV + 0.007 DAV - 0.48 WELF

(0.29) (0.009)      (2.13) (0.028) (0.003) (0.88) R2 = 0.36

where; P = 0 if the municipality defaulted and 1 otherwise

TAX = average of 1929, 1930, and 1931 tax rates

INT = percentage of current budget allocated to interest payments in 1930

AV = percentage growth in assessed property valuation from 1925 to 1930

DAV = ratio of total direct net debt to total assessed valuation in 1930

WELF = percentage of 1930 budget allocated to charities, pensions, and soldiers’ benefits. Interpret these results economically and statistically.