Using the simplified one-period model explain in words and illustrate via a diagram how moving from a proportional tax to a lump sum tax would increase consumer welfare. Explain why the lump sum tax is more efficient.

Suppose the government needs to raise funds for its expenditures by a proportional income tax.
Explain in words why there could be two tax rates (i.e. two equilibria) that could raise the required funds for the government.

What can be said about harrod-domar model assertion based on savings rate? explain explicitly

Q5.      What distinguishes a firm’s short-run period from its long-run period?

Q7.      What is the difference between fixed cost and variable cost? Does each type of cost affect short-run marginal cost? If yes, explain how each affects marginal cost. If no, explain why each does or does not affect marginal cost.

Q8.      Explain why the marginal cost of production must increase if the marginal product of the variable resource is decreasing.

Q10.    Identify each of the curves in the following graph.

Q11.    Explain why the marginal cost curve must intersect the average total cost curve and the average variable cost curve at their minimum points. Why do the average total cost and average variable cost curves get closer to one another as output increase?

Q12.    In Exhibit 7 in this chapter, the output level where average total cost is at a minimum is greater than the output level where average variable cost is at a minimum. Why?         

Q14.    Explain the shape of the long-run average cost curve. What does “minimum efficient scale” mea

P19.     Complete the following table, where L is units of labor Q is units of output, and MP is the marginal product of labor.

1. At what level of labor input do the marginal returns to labor begin to diminish?
2. What is the average variable cost when Q = 24?
3. What is this firm’s fixed cost?
4. What is the wage rate per day?

P20.     Assume that labor and capital are the only inputs used by a firm. Capital is fixed at 5 units, which cost $100 each. Workers can be hired for $200 each. Complete the following table to show average variable cost (AVC), average total cost (ATC), and marginal cost (MC).

P21.     Suppose the firm has only three possible scales of production as shown below:

1. Which scale of production is most efficient when Q= 65?
2. Which scale of production is most efficient when Q =75?
3. Trace out the long-run average cost curve on the diagram.

Chapter Appendix  ‘Production and Cost in the Firm’ - Extra Credit

P1.       Suppose that a firm’s cost per unit of labor is $100 per day and its cost per unit of capital is $400 per day.

1. Draw the isocost line for a total cost per day of $2,000. Label the axis.
2. If the firm is producing efficiently, what is the marginal rate of technical substitution between labor and capital?
3. Demonstrate your answer to part (b) using isocost lines and isoquant curves.

how successful the two countries ( Netherlands and Malaysia ) used fiscal policy to pursue objectives of sound macroeconomic management post Global Financial Crisis until the end of 2018 ?

Prior to 2007 YouTube did not display advertisements and videos. Using the concepts of common resources or public goods (pick one), what problem did YouTube face as a service? How did the introduction of advertisements help solve this problem?

Online, Mobile, and Social Media Marketing: Lazada Local marketing is an effective tool used by marketers to reach intended market segments. Lazada has capitalized on this concept by tailoring brands and marketing to the needs and wants of local customer segments—cities, neighbourhoods, and even specific stores. According to its website, Lazada “offers a vast mobile and online marketplace where your heart beats with Lazada! Shop the widest range of products from Health & Beauty, Fashion, Mobile & Tablets, Home Appliances and much more. Being the leading online shopping mall, Lazada is pioneering e-commerce across some of the fastest growing countries in the world by offering a fast, secure and convenient online shopping experience with a broad product offering in categories ranging from fashion, consumer electronics to household goods, toys and sports equipment. Lazada is always striving to offer its customers the best possible offering – including multiple payment options, free returns and extensive customer service and warranty commitments. Lazada want to emphasize that we're more than just one of the Malaysia's largest online ecommerce stores. It is our highest priority here at Lazada.com.my to create the best online shopping experience for every customer in Malaysia. To help consumers make those connections, Lazada offers a mobile app, online marketplace, and social media touchpoints where customers can readily access information on its daily deals.

(a) How does Lazada use target marketing? Provide examples. Discuss the ways in which small businesses can utilize local social media marketing in your community.

(b) Do you use Lazada? Is it effective in helping local businesses to meet the challenges of local marketing? Why or why not?

What are the advantages and disadvantages of the increasing price of wheat on bakery owners?

4- After you graduate from university, you find a job in a company that produces good X. You are working in a competitive market. Your boss asks you to compute the price elasticity of demand, income elasticity of demand, cross-price elasticity of demand, and the price elasticity of supply. The question is: how your boss will benefit from computing each of these elasticities. Explain in detail with an example for each case.

5- Economists disagree with the accountants regarding computing and reporting the cost of production. Please explain the critical difference and discuss, with an example, how these different views affect the profit of a company.

3- Today and due to the spread of COVID19, we can observe that some sectors in an economy are expanding will others contracting. Using the demand-supply framework, give an example for one industry that is growing and one industry that is shrinking. Use the graphs to explain your idea and demonstrate why this is happening

A monopolist faces three groups of customers (or three markets) such that:

Demand of the high-income group is given by P_h = 24 – 2Q_h

Demand of the middle-income group is given by P_m = 20 – 2Q_m

Demand of the low-income group is given by P_l = 16 – 2Q_l

1. If the monopolist does not practice price discrimination (PD) and combines the three markets into one big market, then he charges a single price to everyone. If his marginal cost MC = $14, find the single price P_s, total quantity sold in the big market Q_t, and quantity sold to each group alone: Q_h, Q_m, & Q_l.
2. Find consumers’ surplus CS for each group or in each market.
3. Suppose the monopolist now decides to practice PD. His MC has not changed. Find the three prices charged: P_h, P_m, & P_l. Also find the three quantities: Q_h, Q_m, & Q_l.
4. Find CS for each group or in each market.
5. Give your own conclusion of whether PD was “good” or “bad” to each group. In your opinion as an economist, was PD “good” or “bad” in this specific scenario?

2-One of the Principles of economics “Trade Can Make Everyone Better Off.” Based on your understanding of this principle, first, explain the fundamental principles of the trade between the two countries. Today we can see that some countries started to impose some restrictions on the flow of goods and services, do you think these practices contradict the principle? Why?

Russell Roberts, The Price of Everything: A Parable of Possibility and Prosperity

In chapter 10 of the story, “No Host No Problem,” Ramon accuses Ruth of “romanticizing the market” and of “romanticizing profits.” Ruth agrees but candidly replies that the market “deserves some romance.” What does she mean? (Hint: the specific tangible benefits of the invisible hand vs. short-run government policies.)