42 0 Q' Multiple Choice MRC Refer to the above graph. If the MRC increased: MRP O O quantity would increase O quantity would decrease. the firm would operate as a monopsonist the firm would increase the supply of labor
Q: In the market for off-campus apartments in San Diego, the market supply curve is QS = 300 + 1/8p The…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: F The equilibrium level of real GDP is Real GDP Consumption (C) $6,200 (Y) $8,000 9,000 10,000…
A: Aggregate expenditure is the sum of consumption, investment, government expenditure and net exports…
Q: Supply and Demand: Suppose that the demand curve for asparagus is P = 15 − 2 × Q and the supply…
A: A demand curve is a curve that shows the relationship between the price of a good and the services…
Q: Price A Du Multiple Choice Do BC Quantity Refer to the diagram, which shows demand and supply…
A: Demand curve is the downward sloping curve. The demand schedule is the tabular representation of…
Q: If current and future consumption are both normal goods, a decrease in the interest rate will…
A: The intertemporal choice model: The intertemporal choice model was developed by Irvin Fisher. Irvin…
Q: Suppose a change in exchange rates causes aggregate demand to decrease. What is the result? Choose…
A: The value of one currency in relation to another is shown by the exchange rate. This is the cost at…
Q: If the growth rate is 1.9 per year how many years will it take for the output to double (enter in 2…
A: Rule of 70 is used to calculate the time period taken to double the output.Tine taken to double the…
Q: ? The land used to produce the clean energy technology that could have been used to produce…
A: Opportunity cost represents the forgone benefits from next best alternative when a decision is made.…
Q: The following graph shows the market for loanable funds in a closed economy. The upward-sloping…
A: Demand curve is a downward sloping curve. Supply curve is the upward sloping curve. Equilibrium is…
Q: The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable…
A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…
Q: Robinson and Friday are trapped on an island together and can produce Fish (F) or Coconuts (C) with…
A: Comparative Advantage, on the other hand, refers to the ability of an individual to produce a…
Q: Complete the following table by indicating whether each point represents output combinations that…
A: Production possibilities frontier shows different combinations of two goods that can be produced…
Q: The percentage of an increase in income that is taxed is: O a regressive tax. the marginal tax rate.…
A: The percentage of an increase in income that is taxed is the tax rate that applies to the last…
Q: In the following, we are going to use the microeconomic theory we have developed in class to explore…
A: As per the honor code, we are allowed to answer three sub-parts at a time so we are answering the…
Q: In Brisbane there is a small population of musicians who play the harp. The quantity demanded for a…
A: A market demand schedule is a table showing the quantity of a commodity that consumers are willing…
Q: Units Consumed Multiple Choice O 0 1 2 3 4 Refer to the data. The value for Y is O O 30. 40. Total…
A: Marginal Utility (3rd unit) = Total Utility (at 3 units) - Total utility (at 2 units)
Q: The figure shows two of Laura's indifference curves and three budget lines: B, when her income is $4…
A: In economics, the term "substitution effect" describes how changes in the relative costs of goods…
Q: In Zimbabwe the rate of inflation hit 90 sextillion percent in 2009, with prices increasing tenfold…
A: Hyperinflation, occurring when inflation reaches extreme levels and accelerates, is characterized…
Q: Suppose there is a decrease in supply and an associated decrease in the quantity demanded. Which of…
A: Supply refers to the quantity of goods or service that a seller is willing and able to sell at a…
Q: An increase in increase in leads to a higher steady-state level of output, and an leads to a lower…
A: Steady-state refers to a long-run equilibrium condition where key economic variables, such as output…
Q: Statutory Conditions in one (1) of the following OA) Knowingly makin OB) Details about wh OC) Method…
A: Statutory Conditions: Legally mandated provisions in insurance policies that set out rights and…
Q: (Figure: Nonequilibrium Wages) Wage Rate W₂ W₂ W, $0 Dube B Q₂ In the figure, wage at W, will cause:…
A: Unemployment is a situation where the people who want to work are not getting the jobs. This means…
Q: Consider the market for Netflix Subscriptions. Show graphically and explain using economic…
A: Market Equilibrium Price is the price at which the quantity demanded by consumers equals the…
Q: 3. If your bank receives a checkable deposit of $20,000 cash, and the banking system makes loans…
A: The money multiplier measures the potential increase in the money supply by the banking system. It…
Q: Which of the following would be classified as a situation where a third-party benefits from a market…
A: Positive ExternalityA positive externality is a condition in which the third party which is not a…
Q: Consider a location game with nine regions like the one discussed in this chapter. But instead of…
A: The term "marketing" describes the approach used by companies to advertise their products, draw in…
Q: 3-a) Why do labor costs made up such a small percentage of the cost to produce an iPhone? 3-b) Where…
A: Cost of production is the total amount spent in the production to produce the goods. Labor cost…
Q: Barnacle Industries was awarded a patent over 15 years ago for a unique industrial strength cleaner…
A: Limit Pricing strategy is one kind of price which is used to sell the product by a provider at a low…
Q: Consider an economy with three consumers, each with a marginal benefit for a public good of MB =…
A: The efficient level of output, with regards to economics, alludes to the quantity of a good or…
Q: If current trends continue, China may be the world's largest economy by 2030. Discuss the possible…
A: Disclaimer :- Since you asked for multipart, we are solving only first 3 subparts as per guidelines.…
Q: For the production function Q = K0.5L0.3 and the budget 143 = 6K + 5L find the optimal employment of…
A: A mathematical equation that depicts the relationship between inputs and outputs of goods and…
Q: 2. Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and…
A: When the economy is closed, GDP = C + I + G Where, C is consumption, I is investment G is government…
Q: Consider a market with demand curve given by QƊ (p) = 110 – p². The market supply curve is given by…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: If an effective ceiling price is placed on hamburgers, then
A: The demand curve represents the quantity demanded by consumers at different price levels. The supply…
Q: A $45,000 investment in a new conveyor system is projected to improve throughput and increasing…
A: Future worth, an essential concept in economics, denotes the total monetary value of a series of…
Q: Which of the following reasons could explain why the aggregate quantity of output supplied changes?…
A: Investment expenditure, also referred to as gross private domestic investment, encompasses the…
Q: Price per Unit $20 $30 $40 $50 $60 Column A (Units per year) 100 95 80 65 50 the market price to…
A: A market refers to a physical or virtual place where a seller and a buyer interact to make an…
Q: assume that you can borrow $175,000 for one year from a local commercial bank A) The bank loan…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: What is a lexicograph curve
A: A lexicographic curve reflects hierarchical preferences, prioritizing one criterion over others when…
Q: Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40…
A: Fixed costs remain unchanged regardless of production output while variable costs will change when…
Q: Assume that the average product for six workers is fifteen. If the marginal product of the seventh…
A: The marginal product refers to the change in total output due to the employment of an additional…
Q: Consider the game below with a worker (W) and a firm (F). The worker initially can choose to acquire…
A: One of the most crucial ideas in game theory is the notion of Nash equilibrium. When no player would…
Q: 4) Rondi decides to spend a weekday at the beach because it gives her $40 worth of fun. The day off…
A: To make decision of choice between different products by a person the net benefit of each type of…
Q: Suppose a company offers a standard insurance contract with a premium (r) of $1,000 and a payout (q)…
A: Insurance is a financial arrangement or contract where an individual or element (the policyholder)…
Q: A fall in the price of a good causes producers to reduce the quantity of the good they are willing…
A: A supply curve is a curve that shows the relationship between the price of a good and the services…
Q: The following table shows hypothetical values for the real GDP and population in the United States…
A: This can be defined as a concept that shows the total production of products and services in an…
Q: Considering the slope of the perceived demand curves faced by the firms in the four market…
A: Demand refers to the quantity of a goods or services that a person is willing and able to buy at a…
Q: Which of the following is NOT a commitment device? Select one: a. A non-refundable advance…
A: The provided question has been answered from the perspective of 'Behavioral Economics'A commitment…
Q: There are many businesses selling flowers in Brisbane on any given day. A flower shop sells a basic…
A: Elasticity is defined as the responsiveness of the quantity demanded to the change in price…
Q: Refer to the below figure. What is the firm's fixed cost when the market price is $3.25? Price ($)…
A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Plz give answer ASAP. A price taking firm has the production function, q = f(l) = √ l where q is the output and l is the labor input. The price of labor input or wage is equal to $ 5, the output price is given by p, and the fixed cost is $80. a. Find the prices at which the firm makes a positive profit, and graph the prices along the curve, Hint find the profit function (SOLVE) b. Find the firm’s supply curve. (chek if correct) Q^2 = L TC or C(q) = wl = wq^2 The level of output wich firm maximizes profit is firms supply function We know profit function = pq – wq^2 dπ/dq = p – 2wq =0 p=2wq q(p,w) = p/2w thus supply function q=p/2w c. When p=10, since the firm makes a negative profit, it is better not to produce. True or False? Explain Hint part (a) we found positive values use (a) to demonstrate (SOLVE)11:16 Fri 10O Dec * 9 80% ... managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A 22 of 46 AP Microeconomics Page 21 of 46 AP CollegeBoard Test Booklet Unit 5 Problem Set - FRQ's Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The table below shows the short-run production function for Josh's Consulting Firm. Number of Consultants Total Product per Hour 1 21 2 43 3 66 4 88 108 6. 126 7 141 8. 151 (a) After which consultant do diminishing marginal returns begin for Josh's Consulting Firm? Explain using numbers. (b) Assume Josh's Consulting Firm sells its consulting services in a perfectly competitive market at a unit price of $2. Calculate the marginal revenue product of the fifth consultant. Show your work. (c) Josh's Consulting Firm hires…Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
- 100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.MC Price (Rials per anit) ATC 1012 15 16 IS 16 Quantity (units) 17. In the above figure, at a price of RO 5, the firm's output would be and it would units e 12; incur an economic kss b. 5: shutdowr 16; breakeven d. 12; brsakeven c.
- Explain why earning zero economic profit is not as bad as itsounds.A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?Are there fixed costs in the lung-run? Explain briefly.
- Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?