Category: Economics

Briefly discuss how the price of a company’s stock will be determined. Briefly describe the two main motivations for purchasing stock and identify which of these motivations will have the greatest effect on the market.

➤ How can Ewan use MU/P to maximize utility under a budget constraint?
Ewan compares MU/P for each option and reallocates spending to satisfy the equi-marginal condition (MUa/Pa = MUb/Pb). He shifts money toward goods with higher MU/P and away from lower ones until marginal utility per dollar is equal or his income is exhausted, achieving the highest possible total utility.

The New Product Development Committee liked your proposed approaches to ensuring satisfaction and building loyalty. There is general confidence in the ideas for how your new product concept will be positioned, priced, communicated and distributed to reach and attract the target segment.

Refer to the above figure. Which of the following would allow society to move to point d?
5:using the best land to produce wheat and the lower quality land to produce beansproducing efficientlyincreasing the quantity of laborconcentrating production in wheat

➤ What happens to market supply and price if one perfectly competitive firm raises its output?
Market supply increases by the extra units the firm produces, while the market price stays the same. In perfect competition each firm is a price taker facing a perfectly elastic demand at the market price. One firm’s output change is negligible relative to total industry supply, so price remains unchanged.

Question content area
Part 1
The interest rate on overnight loans from one bank to another is the▼ discount ratetreasury yieldfederal funds rate.
Part 2
▼ Open market operationsDiscount ratesReserve requirementsare the most important policy tool the Fed has for controlling the money supply.

Part 1 Some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is similar to fiscal policy and is called Part 2
A.monetary policy.
B.automatic stabilizers.
C.discretionary fiscal policy.
D.transfer payments.