Been stuck on this question since the morning since I do not understand the answer to this question.

Suppose you are a firm with a decreasing returns to scale, if you are to divide your firm into two smaller independent firms with equal inputs, what will happen to the firms profit?

The answer given to me is that it will decrease the profit, but I thought that since it’s decreasing returns to scale, if we were to start with f(2x) and then turn it into two f(x)s, we will have 2f(x) > f(2x) using the same amount of input (x + x = 2x). Hence cause total output increases while the total input stays the same, the firm(s) will have a higher profit.

Can anyone help me understand the concept? Thanks in advance.

I'm writing an economics paper and its goal is to assess whether the passage of NIL had a significant impact on boosting national engagement with women's collegiate athletics. My prior is that NIL brought enhanced exposure and brand recognition to audiences that previously never considered watching women's sports, driving the explosive growth we saw this year in women's college basketball, particularly the ascendance of stars like Caitlin Clarke and Angel Reese. My plan is to use Google Trends data to gauge interest over time of women's college sports as my outcome variable but I'm not sure what to use as the treatment variable. Does anyone have any ideas? I was thinking state-level variation and running a diff-in-diff regression but it looks like the NCAA adopted a blanket policy legalizing NIL on July 1, 2021.

The question reads as follows: True or false? A good’s price elasticity of demand increases the more broadly a good is categorized.

The answer in the context of my class is True, but other sources are saying it is False. Can someone explain? Does “increases” mean it moves closer to -1 and 0, becoming more inelastic? In that case that would make it true, right?

It's been some time since I took econ 101, but afaik, the standard formula is

#Profit = Revenue – Cost

Cost includes things like rent, the money you spent to buy raw materials, maintenance, tax, wages or salary, etc.

#Profit = Revenue – (rent + material + maintenance + tax + wages...)

My question is... "What equals Revenue minus AllOtherCostsExceptWages?"

#X = Revenue – (rent + material + maintenance + tax...)

I want to compare the two datasets of NFHS 2015-16 with 2019-21 to study which independent variables have become more or less significant in 2019-20 compared to 2015-16.

Someone has suggested using the first indifference method to compare these datasets. Is the comparison only possible by applying a complex ecotrix model, or is there another way to compare them?

Also, could you please recommend a book or channel where I can learn how to compare datasets to study relationships or evaluate differences?

When people say countries export and import goods from another country, who are they talking about specifically within the country? Do they mean firms, individuals or the government? For example, if the UK is importing clothing from China, who is doing this? Firms, individuals or the government? And if it's firms and individuals why does the government care if they they go into a current account deficit? Wouldn't the firms and individuals be the ones shouldering the costs? Why do governments have to borrow money for the deficit? Sorry for the long question, really need help. Any answers will be appreciated immensely!

it should be straightforward but none of the options fit?

A _____ cost is ______ if the firm doesn't incur the cost if it produces no output.

The options are:

fixed; sunk It can't be sunk if the firm doesn't incur it

fixed; explicit I suspect it may be this one but i'm not confident.

variable; sunk (again it can't be sunk)

fixed; avoidable (fixed costs aren't avoidable)

Please help me understand this question

I'm having trouble trying to get how to differentiate on both sides of an equation, to be precise, in this proof, i'ts from Varian's Intermediate. I can't understand why is it derived on both sides being the right side a function of 2 variables (I remember the chain rule though).
I know that I should know how to do it, but it's been a long time since I've taken math for econ, so I need a good reference book to catch up. Sorry for my bad english

I'm an economics student at PUC Rio in Brazil and I'm having doubts about a finance project where I have to deal with present value, future value, net present value. Can someone help me?

I was wondering if through capital controls it would be possibile for a central bank to peg to two different currencies (that are not pegged to each other). If so how would this work and would this be similar to having a risk premium on the UIP condition? Thank you!

I'm doing a paper on long term care services and how they may affect the labor participation of caregivers. I'm looking for surveys so I can use their data, but I can't find any. Does anyone know where I can get it. I'm trying to use American data

I built an ordinal model, and after manually checking for the proportional odds assumption (because, for some reason, the brant command was not working), I realized that the margins for my variables were not equal across all categories of the dependent variable. From what I understand this is a violation of the main assumption of an ordinal model.

I was able to build a multinomial logistic regression model using the mlogit command, but is this my only option? When working with OLS, there is the option to use weighted errors to fix heteroskedasticity. Is there something similar I can do?

I am doing an OLS model with survey data that asked participants their opinion on different things and the possible answers were Positive, Negative and Neutral.

The answer to one of those questions is my dependant variable and I am assigning a value of 1 to Positive 0 to Neutral and -1 to Negative.

Does this makes sense? I thought about it and in my head it would meant that a negative coefficient makes you more likely to dislike something and a positive one makes you more likely to like it. but also there is the neutral option.

Should I just drop neutral and use -1 and 1? Or maybe I drop neutral and use 0 for negative and 1 for positive?

I am working on an OLS model which has as a dependent variable log wages and explanatory, and the main explanatory variables are 4 dummies for the highest level of education the individual has achieved.

logwages = α + ßPrimarySchool + ßSecondarySchool + ßPregrad + ßPostgrad +....

I am considering including an instrumental variable because individuals with higher education might be more talented and naturally have higher skills. The dummy variable is the municipal-level investment in education and libraries in the individual's district.

Is it possible to use a single continuous instrumental variable for 4 different dummy variables? How would you do this on STATA?

There are dramatic changes in the USD/CNY exchange rate from 2022 and 2024.
May I ask:
-What are the reasons behind this phenomenon? Which country has more significant influence?
-How will it change in the next 3-6 months? Why do you believe so?

Or professor gave us this question:

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Suppose you are a quasi-hyperbolic discounter with β = 0.70 and δ = 0.85. What is going to
be the effective discount factor, between t = 3 and t = 9? What is going to be the effective
discount factor, between t = 0 and t = 4?

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however in class he has never mentioned effective discount nor can i find anything online, con someone help out

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Hello, I am writing my thesis in economics and am thinking of studying the impact a funds morningstar rating (basically ESG) has on its performance, in this case we're looking at Swedish funds.
I am wondering how I best construct my model to be able to distinguish the effect that the sustainability rating has on performance. I am considering constructing 5 portfolios with 10 funds in each based on the rating the fund has been given (1-5) and then computing cumulative return for the portfolios from 2015-2020. Cumulative returns would go as dependent variable and the morningstar rating would be coded as a dummy d1-d5 and d1=0, d2=0,... d5=1 if the rating is 5. I'd also add some further control variables such as number of investors that have the fund and the value of the fund.
The question is then if this will be an adequate method to be able to distinguish the effect the rating has on the performance? I saw a similar work with stocks where they used the MSCI rating system ranging from CC+BBB to AAA.

Could another method be of having the cumulative return of all the funds (around 50) in our case and then just do a big regression with the morningstar rating and fund value and some other independent variables
Any help in this matter is of great use,
Thanks

So, my teacher ask me to explain clearly why, how, what derivative tool,. affect to the rise and fall (add charts, data,..) of these events:

-The Enron crisis for Greed

-Nick leeson's gambling for Wrath

-The Long-term Capital Management for Sloth

-The Lehman Brothers scandal for Pride

-Parmalat's scandal for Envy I'm just learn about derivative market subject for 2 month but my teacher don't care about it. If I can't explain it in my essay, I won't pass this subject. Anyone know please help me.

Hello, I am undertaking a small course in Macro-Econ and i have been tasked in coming up with a possible policy that the government should undertake to help alleviate poverty without the policy being just increasing government spending/Expansionary policy. of course i must also be able to demonstrate that the policy indeed wouldn't be expansionary.

I have 2 that i found but i want to know if there are more policies that i should research for my task.
A negative income tax for those in poverty meaning that they will receive money if they fall below a certain threshold.

Or making the taxation bracket more progressive and using the extra revenue to fund anti-poverty policy

This is the syllabus here: https://waecsyllabus.com/economics/

Hello! I am doing a macroeconomics project on the economy currently, and I have a question regarding a concept (this is not a specific question on the project).

I have determined due to decreasing M1 rates the Fed is enacting contractionary policy. My problem arises however because if this is the case, why is inflation still so high? Contractionary policy should lower inflation but I don’t see that happening. I am unsure if I misunderstood what the Fed is doing currently or if maybe the policy just hasn’t worked?

Anything helps, thank you!

I'm reviewing for my IB economics exam, and in my notes, I wrote that an interventionist supply-side policy is when the government intervenes through building infrastructure, but I also wrote in my notes that government spending on investitureure is a fiscal policy. The internet says both things but I wish to understand the concept better.

As far as I understand, the price offer curve shows all the utility-maximizing bundles generated by varying the price ratio but with the utility function remaining the same. However, I saw in a lecture that the budget line was crossing the price offer curve, and there were two indifference curves on the intersections and it looked like they would also cross each other.

I'm probably getting some things wrong here, so I'd really appreciate it if someone could help :)

https://linktr.ee/qr/1cda08cf-4304-407f-8439-29b9209f621f

Hello everyone. I have a big doubt in Microeconomics Suppose that my price elasticity is -1 -1<€<0 €<-1

How does the quantity demanded change as price increases or decreases?

Students who wish to ask questions related to their econ homework on this sub need to be mindful of the fact that tutors here CANNOT do your homework for you. We can guide you through the problem(s), prompting you to work your way through by yourself, but the expectation is for you to attempt the problems on your own and only seek help if you get stuck somewhere along the way.

The reason why I had to make this post is because I was approached by a student yesterday through my DMs who asked if I could do their homework for them in exchange for some cash. This is totally against the rules of this sub, and it also goes against the whole purpose of independent learning through your homework problems. Students mustn't get the wrong message from the theme of this sub.

We also ask you to please specify the area of econ that your question pertains to. Many tutors on this sub, including myself, specialize in different areas of economics (i.e. micro, macro, econometrics, behavioral, development, etc.). We genuinely want to help students but unfortunately, not all of us can help with every single branch of economics. Furthermore, new research in this discipline is generating new sub-fields now more than ever before. So, specifying what exactly you are struggling with, helps the tutors to prepare a response that will help you to understand the concept(s) a little bit better.

Good luck with econ.

Hi all,

As the title suggests I am looking for alternatives to the CRSP (Center for Research in Security Prices) database. I am an Econ PhD student but my university doesn't subscribe to Wharton Research Data Services, so I can't access the database. I am looking for monthly data on the historic performance of small cap stocks from 2000 - 2019, as I am looking to correlate my own qualitative measure of investor sentiment with the move away from individual stock ownership.

Thanks in advance.

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hello, i am not able to upload a photo for some strange reason so i will just describe my problem. I had two different questions asking about how to calculate gdp from expenditure side. I know the formula for both and learnt that depreciation in only added to the income approach and not the expenditure. However, in multiple questions in my practice questions in my textbook, it kept showing that i need to add depreciation, even though the question was asking to calculate from expenditure approach. It only corrected once i added depreciation. However, in another one of my questions, the approach was expenditure again but this time it flagged and said not to add depreciation...I am confused now if i need to add it or not to expenditure approach. The only difference between the two questions was that the latter one said something along the lines of "calculate gdp for one year period from expenditure side" while the former just said "calculate gdp from expenditure side"? So, if gdp is only for one year period, i dont include depreciation but otherwise i should?? That seems the only logical explanation. Please explain