13. Describe the features of monopolistic competition: How is it similar to monopoly? b. How is it similar to perfect competition? c. What are the characteristics of short-run equilibrium? d. What are the characteristics of long-run equilibrium? e. How is long-run equilibrium attained?
Q: b) If investor’s revise their expectations and now expect that Canada’s inflation rate will increase…
A: Yield curve represents the returns on the bond and time horizons. Yield curve helps us to understand…
Q: What are the implications of labor disaggregation and capital disaggregation to developing countries…
A: Answer -
Q: What occurs when the cost of producing a range of products is lower than the cost of producing each…
A: The process that depicts an increase in the production of services and goods in an economy during a…
Q: A5 Does anyone know why the EU was created in the first place? Why has its formation improved the…
A: Union refers to the coming together of a number of individuals to form a group in the aim of some…
Q: Obtain weekly data from Refinitiv Eikon and plot the interest rates (bid and ask mid- rate) on…
A: Interest rate theory Interest rate theory is the hypothesis that may represent the Time value of…
Q: suppose the reserve requirement os 5 percent, banks keep no excess reserves and the currency in the…
A: Excessive reserve are bank saves held by a bank more than a hold prerequisite for it set by a…
Q: What is the overall outcome for this game? Group of answer choices (Don't Enter, Price War) (Don't…
A: Using backward induction we can solve this decision tree game. In backward induction, we move from…
Q: 20. Marta purchased a sweater for $15.67, a pair of socks for $2.13, and a bracelet for $6.78. For…
A: Sweater cost = 15.67 Socks cost = 2.13 Bracelet cost = 6.78.
Q: Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of…
A: Indifference curves are heuristic instruments that are utilized in modern microeconomics to…
Q: Question 2: Suppose the following parameters are given for a hypothetical Solow model economy with…
A: Given information α=1/3θ=1/3sk=0.12sh=0.2δ=0.055n=0.05g=0.02A=1
Q: The saving rate is 30% and the depreciation rate is 10%. The production function of the economy is…
A: Saving rate (s) = 30% or 0.3 Depreciation rate(δ)=10% or 0.1
Q: barcode reading device has an installed cost basis of $22,100 and an estimated service life of…
A: In the given case of 200% declining balance method, depreciation is computed as follows -…
Q: • Example: Cash flow diagrams of two different projects are given in the table. Which project should…
A: The measure that depicts the present income stream of cash flows discounted at a specified rate of…
Q: Assume that x1, x2 are ordinary goods. X₁ is an inferior good and x2 is a normal good. Draw a…
A: The Slutsky decomposition is a mathematical technique that has been used in economics for a long…
Q: Your boss is impressed with your performance over the past year and has decided to give you a 5%…
A: Here, it is given that an employer gives 5% increase in salary to his employee as he is impressed…
Q: Which of the following cost relationships is incorrect? a. APL=TP/L b. TVC= TC-FC c. MC=change in…
A: Total cost is the sum of Fixed cost and variable cost. Fixed cost remains same at all levels of…
Q: The utility function of a certain good is given by U(x) = 60x - x2 where x represents the number of…
A: Given the utility function, we will maximize the function to get the value of x which gives the…
Q: When a country imposes a per-unit tariff on an imported good or service: O the price of imports…
A: Imports are the goods bought which are produced outside the country.
Q: Discuss the short-term and long-term implications of an ill-health working environment.
A: Working environment plays a very important role in the functioning of a firm. It refers to the…
Q: Q1. Suppose the government is considering an increase in the toll on a certain stretch of highway…
A: Elasticity measures th responsiveness of change in price on the quantity demanded of any good or…
Q: What will happen to the average total cost if the average variable cost is falling? a. Rises B.…
A: The average Total cost if the the average variable cost is falling is also falling.
Q: how important and efficient is the WTO to provide help for poor countries?, how can we measure their…
A: 1) The World Trade Organization( WTO) was innovated on January 1, 1995, as we all know. The World…
Q: The PPF illustrates the principles of constrained choice, opportunity cost, and scarcity. Consider a…
A: The curve that depicts various combinations of goods that could be produced using the given…
Q: Suppose you have $5,000 as a gift from your parents just after you graduate. You have a car, your…
A: Insurance is a contract in which a person pays a firm and the company agrees to pay money if the…
Q: What is the yield to maturity on a simple loan for $5 million that requires a repayment of $9…
A: Yield to maturity is close to the current yield in that it divides annual cash inflows from a bond…
Q: You are given the information of three sector economic model: C = 300+ 0.8YD 1 = 100 G = 200 T=50…
A: We know that any economy is in equilibrium when: Y = C + I + G Also Yd = Y - T Yd means disposable…
Q: 3. Two firms make bicycles and they are willing to supply bicycles each week as follows: Peddle A…
A: "Supply generally indicates a positive relationship between price and quantity supplied of a…
Q: Southern California Edison is a profit-maximizing monopolist that exercises monopoly power in its…
A: "A monopoly firm is a single seller of the commodity or service. This firm can influence the market…
Q: A secluded off-ramp on a highway through the Prairie of Prax has two gas stations, the only gas…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 2) During a routine patrol, Enterprise receives a distress call from Earth outpost 3. It turns out…
A: In a strategic environment, game theory is a theoretical framework for conceiving social…
Q: 5. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…
A: The sticky wage theory estimates that worker pay will in general answer gradually to changes in…
Q: ssume you were invited as a resource speaker to your fellow age group during an Environmental…
A: Disasters strike all across the world on a regular basis. People are widely dispersed and live in a…
Q: Which of the below statements DOES NOT capture what Charles Wheelan has expressed in chapter 6…
A: The summary of chapter 6 Productivity and Human Capital of Naked Economics is as follows : Human…
Q: 5. The following graph shows demand and MR for a monopoly: 20 15 10 5 MR D 0 200 400 600 Quantity a.…
A: Answer: (a). According to the above figure, if the firm wants to sell 200 units then it should…
Q: Which of the following represents the opportunity cost of X in terms of Y? a. Px/Py = MPLx/MPLY b.…
A: The opportunity cost of X in terms of Y is the amount of Y that needs to be sacrifice in order to…
Q: Why do we need to assume other things equal (constant) when justifying the law of demand? Explain in…
A: Let's first learn about the law of demand. The law of demand states the relationship between price…
Q: 6. The following figure shows long-run average and marginal cost curves for a competitive firm. The…
A: The measure that depicts expenses being incurred by the entity for carrying out its day-to-day…
Q: Consider the three three-player game below with payoffs D L R L R (2 2) (0,0,0) (0,0,0 t (2,1,2)…
A: Nash equilibrium payoff for a player is given by the value of expected payoff which the probability…
Q: United States U.S. DEPARTMENT OF COMMERCE Census 2000 BUREAU OF THE CENSUS WASHINGTON, DC 24213-2000…
A: A census is a method of gathering, collecting, and recording data on members of a population in a…
Q: The market for used phones is perfectly competitive. The Marginal Willingness to pay (MWTP) and the…
A: Buyer MWTP Seller MC A $346 U $871 B $689 V $428 C $222 W $228 D $933 X $455 E $394 Y $715…
Q: You have $100 to spend on food and clothing. The price of food is $4 and the price of clothing is…
A: A budget constraint is a set of constraints that show how much money may be spent. The combination…
Q: The monopolistically competitive industry is most similar to (answer) in the number of firms and…
A: Monopolistic Competition is an imperfect competition market. Imperfect Competition means having…
Q: 5. How do monopolistically competitive markets differ from competitive markets? If monopolistically…
A: Monopolistic rivalry portrays an industry wherein many firms offer items or administrations that…
Q: 1) Consider the effects of a natural disaster like a hurricane on a metropolitan economy. In the…
A: The equilibrium market pay rate is determined by the intersection of labor supply and demand.…
Q: Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details…
A: "The Herfindahl-Hirschman Index or HHI is used to measure the market concentration and to determine…
Q: France has the largest long-run elasticity of oil demand (–0.6) of any of the large, rich countries,
A: The long-run elasticity of oil demand in France is more than any other large rich nation. This…
Q: 8. Using the following data, total population 900 million, population under 16 years of age or…
A: Unemployment is basically refers to that Situation when people are actually not getting job in the…
Q: Now adjust the graph to show the new long-run equilibrium. What causes the economy to move from its…
A: Introduction This topic is related to long run and short run equilibrium.
Q: After reviewing major/relevant material in microeconomics, your group has begun brainstorming the…
A: Microeconomics is the branch of economics that deals with economical problems at an individual…
Q: Nike shoes and Wolverine Hiking Boots: % change in demand for Nike = 1% % change in price of…
A: Given; Percentage change in demand for Nike= 1% Percentage change in price of Wolverine Hiking…
econ. Qestion. answer, A.B,C
Step by step
Solved in 2 steps
- 1. How might advertising make market less competitive? How might it make markets more competitive? Give the arguments for and against brand names. 2. You are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC b. P > MC, P < ATC c. P = MC, P > ATC d. P > MC, P = ATC1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve to the right? The number of consumers decreases. The number of suppliers decreases. There is an improvement in production technology. The price of a substitute good increases. 2. Which of the following gives an example of an implicit cost for a bakery? The cost of flour used to make bread Bakeries have no implicit costs because they are monopolistically competitive. The foregone payments that could have been earned by renting out the bakery’s storefront to another firm The wages the bakery pays to its employees 3. A producer knows that the price elasticity of demand for his product is -0.67. He wants to increase quantity demanded by 33%. By what percentage does he need to change the price? -0.221 -2.03 -0.493 0.4933. You are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC b. P > MC, P < ATC c. P = MC, P > ATC d. P > MC, P = ATC
- 7) How do Monopolistic Competition and Perfect Competition differ in terms of efficient use of resources, in the long run?1.What degree of income elasticity of demand would you expect for summer holiday breaks to an exotic destination? Explain your reasoning in a few sentences. 2.Consider the markets for pizza delivery services in Vienna, hotel accommodation in Krems and train travel in Austria. Define the market types perfect competition, oligopoly / monopolistic competition and monopoly and classify the given examples accordingly. Explain your reasoning in a few sentences. 3. Consider an independently run hotel in Krems and briefly discuss how it might be affected by the following scenarios: a) A rise in interest rates b) A fall in unemployment c) A fall in the exchange rate (i.e., the value of the euro decreases) d) A rise in inflation 4.Explain why tourism satellite accounts are useful and give examples for direct and indirect effects (two examples for each). 5. From 2015-2019, the Austrian accommodation and food services industries have grown in real terms by 4.1 %, the Austrian economy as a…8. From the following graph, show the equilibriums under each scenario. Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D. P'. P MR D. MR, Q. Q', Quantity Price
- 1. If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good? Explain. 2. What is the deadweight loss of monopoly? Show the deadweight loss when the monopolist can perfectly price discriminate. 3. What is the point of long run equilibrium of a monopolistically competitive firm. How does it compare to a competitive firm.2. Entry or exit in the long run Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. 500 450 Monopolistically Competitive Outcome 400 350 300 Profit or Loss A ATC 250 200 150 MC 100 50 MR Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Given the profit-maximizing choice of output and price, the shop is earning profit, which means there are shops in the industry than in long-run equilibrium. PRICE (Dollars per bike)Question 1a. How is monopolistic competition like monopoly, perfect competition andoligopoly? b. Give two examples of price discrimination. In each case, explain why themonopolist chooses to follow this business strategy c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm?
- 7. The figure shows the monopolistically competitive market for smartphones. Plot the profit-maximizing price and quantity on the graph. Is this producer earning positive or negative profits in the short run? In the long run, will supply or demand for this producer's good be affected? Will economic profits increase or decrease for this producer?1. Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________. 2. In the model of monopolistic competition, if the price is ______ than average costs, then firms are earning __________ economic profit and we should expect firms to _________ the industry. 3. In the model of monopolistic competition, if an industry has large ________ relative to another industry, then we should expect _________ firms to operate in a long-run equilibrium of that industry.(a) Explain why a monopolistically competitive firm’s profit maximization occurs at the output level when marginal revenue for the firm is equal to its marginal cost. Use a graph to prove your point for a monopolistically competitive firm. (b) What can a monopolistically competitive firm do to try to maintain economic profits?