Macroeconomics Answers

.What is Quantity Theory of Money?

The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $1.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked (as before), or partially cooked and then flash frozen, for the customer to finish at home. This alternate process has a fixed cost of $24,000, but a lower variable cost (because much less energy is used in baking) of $1.25 per pizza.

a. What is the crossover point between the existing process and the proposed process?

b. If the owner expects to sell 9,000 pizzas, should he get the new oven?

Why rent seeking bad for economy

Which of the following will increase the unemployment pool? [A] a decrease in the number of new entrants in the labour market. [B] a increase in the number of people who are hired. [C] an increase in the number of people looking for a job. [D] a decrease in the number of people who are laid off.

What is marginal rate of substitution?

During a downswing phase, cyclical unemployment will... and inflation will...

[A] increase; decrease

[B] decrease; decrease

[C] decrease; increase

[D] increase; increase

Hello!

Please guide me as to how is 'C' the answer for the following question.

In the market for a good the quantity supplied (QS) and the quantity demanded (QD) are given by QS = P – 30 and QD = 240 – 2P where P = price in dollars. A change in the tax on the good makes QS = P – 36. How will the change affect equilibrium price?

A It will fall by $2.

B It will fall by $6.

C It will rise by $2.

D It will rise by $6.

What is IS curve?

Assume that ABC Company has fixed production costs of $70 per unit, and marginal cost of production is $0.4 per unit. ABC sells for $0.5 per unit. a) Write down the associated cost, revenue, and profit functions. b) What profit (or loss) results from the sale of 500 units of products? c) How many units of output should be produced and sold in order to break even?