Category: Economics

Which of the following is NOT an example of a leading indicator?
Competitive analysis on wages, bonuses and benefits
Inventories to sales ratios
Number of user dowloads
Index of consumer confidence

Show me the steps to solve Under constant returns to scale, average cost as the quantity produced increases. Over this range of output, the marginal cost curve is the average cost curve.
State the constant returns to scale (CRS) property: for any scalar α > 0, the production function satisfies f(αK, αL) = α f(K, L).
Write the cost-minimization problem for output q:
C(q) = min_{K,L} [rK + wL] subject to f(K,L) = q,
where r and w are input prices.
Use scaling: if (K*, L*) is cost-minimizing for output 1, then (qK*, qL*) produces q. By CRS, costs scale linearly, so C(q) = q · C(1).
Compute average cost:
AC(q) = C(q) / q = [q · C(1)] / q = C(1),
so average cost is constant as quantity increases.
Compute marginal cost:
MC(q) = dC/dq = d[q · C(1)]/dq = C(1),
hence MC(q) = AC(q) for all q in this range.
Conclusion: Under CRS, average cost remains constant as output increases, and the marginal cost curve coincides with the average cost curve over this range.

➤ How does a confederal system differ from dual federalism?
A confederal system grants primary sovereignty to member states and creates a weak central body that only performs delegated tasks. By contrast, dual federalism operates within a constitutional framework where both national and state governments are sovereign in separate spheres, and the national government retains exclusive constitutional powers.

➤ How do you calculate marginal benefit and marginal cost?
Calculate marginal benefit by taking the change in total benefit divided by the change in quantity. Calculate marginal cost similarly: change in total cost divided by change in quantity. For discrete units use differences (ΔB/ΔQ, ΔC/ΔQ). For continuous choices use derivatives: MB = dB/dQ and MC = dC/dQ to evaluate small incremental changes.

Question 23 (1 point)In a capitalist system, financial markets play a central role in the allocationof capital resources. That is to say, prices serve as signals and help organize society.true

The primary inducement for new firms to enter an industry is
Multiple Choice
increased technology.
availability of labor.
low capital costs.
presence of economic profits.