microeconomics Question?? plz help?

2013-07-01 8:56 am
i have to write a paragraph answering these 2 questions and i need some hints or someone to describe what the questions are asking. thanks

1. How does requiring an auto seller to prepare addition documents affect the marginal cost that the seller faces in completing a vehicle transaction?
2. Why does a requirement to document that a customer has been checked against terrorist watch lists constitute social regulation instead of economic regulation?

回答 (2)

2013-07-01 9:53 am
✔ 最佳答案
1. In economics, marginal cost is the change in the total cost that arises when the quantity produced changes by one unit. that is, it is the cost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional cost required to produce the next unit.

auto seller refers back to the concept: auto sales. definition for auto sales: monthly sales report provided by major automobile manufacturers regarding the previous month sales.

hope this helps with the first question :)

2. social regulations protect public interests such as health, safety, the environment, and social cohersion. The economic effects of social regulations may be secondary concerns or even unexpected, but can be substantial. reform aims to verify that regulation is needed, and to design regulatory and other instruments, such as market incentives and goal-based approaches, that are more flexible, simpler, and more effective at lower cost.

economic regulations intervene directly in market decisions such as pricing, competition, market entry, or exit. reform aims to increase economic efficiency by reducing barriers to competition and innovation, often through deregulation and use of efficiency-promoting regulation, and by improving regulatory frameworks for market functioning and prudential oversight.

hope this helps out with the second question ;)
2013-07-01 5:08 pm
1. Marginal cost is an increase in variable cost when one unit more is sold. The cost to prepare documents is obviously a variable cost which has increased in order to sell a car more.
2. Terrorist situation is an social issue because it's about social safety. It's not a bout economics because it has nothing to do with demand,supply and the market. So the regulation concerning social safety is social regulation.


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