A perfectly competitive firm should shut down in the short-run if price falls below the minimum of A) average variable costs. B) marginal revenue. C) fixed costs. D) average total cost. E) marginal cost.
Q: (b) Discuss the methodology of econometrics.
A: Econometrics basically refers to the quantitative application of statistical and mathematical models…
Q: 13. You are the manager of a supermarket, and you know that the income elasticity of peanut butter…
A: Income elasticity of demand means percentage change in quantity demanded divided by percentage…
Q: Anthony and Brandon have a utility possibility frontier that is given by the following equation: UA…
A: Production possibility frontier curve shows the relationship between inputs and output. It means two…
Q: 9. Suppose Q " = 10,000 – 2 P, + 3 P, - 4.5M, where P, = $100, P, = $50, and M What is the own price…
A: For give price and income we calculate the quantity of X
Q: Question # 14: Economic “Sustainability" and Environmental “Impact" Analysis : A country of 150…
A: The environmental impact is calculated using the formula I = PAT
Q: The reason(s) why real GDP grows, in the long run, is that Select one or more: O imports increase. O…
A: Gross domestic product refers to the economic tool to measure the national income of the people.
Q: Q.3. Suppose that Salim income is OMR 3000. His demand for good X and good Y depends upon the…
A: The term "consumer equilibrium" refers to a scenario in which a consumer is completely satisfied…
Q: During a recovery we observe interest rates tend to _______________(increase/decrease)…
A: Consider the below points: *Inflation and interest rates are inversely related. *Lower interest…
Q: Solve it correctly last time incorrect solution provides Q) The marginal products of capital…
A: Given the output, cost is minimized when the following condition is satisfied : MPL/PL =MPK/PK It…
Q: ich of the following is NOT the limitation to the use of discretionary fiscal policy to stabilize…
A: Discretionary fiscal policy is deliberate changes in the tax and expenditure policy of government.…
Q: The Canadian government is successful in financing its "Investing in the Middle Class Budget" by…
A: When talking about international exchange activities, these activists are recorded in different…
Q: Explain what a production function is, and state the production function for a cocoa producer. b.…
A: Answer a. The relationship between the quantity of productive inputs (such as labour and capital)…
Q: B. Bank of Canada Banking System Assets Assets Securities Advances to Banks 36.0 16.0 Reserves…
A: Banks are often a significant part of our life when you stop to think about it. We go to the bank to…
Q: Table: Monopoly and Regulated Monopoly Quantity Price TR MR TC MC АТС Profit Demanded $15.50 $0.00…
A: We will use the following formulas: ATC = TC/Q MC = TC(2) - TC(1) Profit = TR -TC
Q: Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to…
A: National savings is the sum of private savings and public savings. Private saving = Y + TR - C - T…
Q: The diagram below shows a natural monopoly. If the firm is unregulated, how much deadweight loss…
A: In monopoly, profit is maximised at a point where marginal revenue is equal to marginal cost and…
Q: 1) When disposable income increases from $14,500 to $18,700, consumption increases from $12,300 to…
A: "Marginal propensity to consume represents the proportion of addition to the disposable income spent…
Q: Output (Q) Total Revenue Total Cost $0 $10 30 40 2 60 60 3 90 70 4 120 75 150 85 180 110 7 210 140 8…
A: Output TR TC MR MC 0 $0 $10 - - 1 30 40 30 30 2 60 60 30 20 3 90 70 30 10 4 120 75 30 5…
Q: Explain the concept of restrictive covenants. When and why do they apply?
A: Restrictive covenants: When some property is bought and sold between parties then there is some…
Q: 2. Discuss the role of offshore banking in derivatives.
A: Banking plays an important role in the deposit money from the customer and providing loan facilities…
Q: The figure shown reflects the presence of Social Cost Private Cost P. Demand Quantity positive…
A: Externality refers to cost or benefit which occurs from production and falls on the third party who…
Q: Why does monopoly need to be regulated?
A: A monopoly is the marketplace with only a single seller of a specfiic good as there is no close…
Q: Which of thne following does not lead to an increase in consumption A Higher unemployement (B Higher…
A: Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast…
Q: When the interest rate falls, how does the opportunity cost of holding money and the quantity of…
A: Interest rates are defined as the form of reward given to the investors for investing their money…
Q: Consider the GDP deflator and real GDP, given in thousands of dollars, for the country of Economica.…
A: GDP Deflator = (Nominal GDP/ Real GDP)*100 (GDP Deflator* Real GDP)/100 = Nominal GDP
Q: B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price 2020…
A: Here we are Assuming the base Year is 2020 Formula Used to Calculate cost of Basket basket= Cost of…
Q: What are leading economic indicators? Why are they important?
A: An economic indicator is a piece of economic data, usually on a macroeconomic scale, that analysts…
Q: If a photon has energy of $1*10^{-10}$ Joules, what is its frequency? Оа. 1.5е23 Hz O b. 6.6e-44 Hz…
A: Given, Energy = 1 x 10-10 J Constant h = 6.626 x 10-34 Js The relationship between energy and…
Q: The price of a daffodil is $0.97. When average income is $52,000 demand for daffodils is given by P…
A: Income elasticity of demand measures the responsiveness of quantity demanded with respect to change…
Q: Expenses that do not require a monetary outlay but instead reflect the dollar value of benefits…
A: Accounting cost:- Any action's accounting cost can be explained as the expense that is…
Q: A Moving to another question will save this response. Question 15 (100, 150) Player 2 (110, 200)…
A: SPNE refers to sub-game perfect Nash Equilibrium.
Q: d. In addition to k = 0, now assume Po = 0 and determine the price in periods 1, 2, 3 and 4. Plot…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: What is the maximum amount of money created from a $3 million deposit in the banking system if the…
A: Given information - Deposits = $3 million Required reserve ratio = 0.05 The maximum amount of money…
Q: a your opinion, how do theories of economic development guides one country in etermining economic…
A: The economic growth refers to sustained rise in the production of goods and services.
Q: The refinery at Petrotrin receives barrels of Oil from Suriname Under Processing Agreement (u.p.a),…
A: The above question is based on the holding out of ownership of assets legally and utilizing the…
Q: a. Construct a diagram of the cost function, where you have the quantity on the X-axis and the cost…
A: Answer; PART A QUANTITY(q) cost(C) Fixed (FC) Variable. (VC) Marginal. cost (MC) Average T.…
Q: Variable cost Quantity (number of cups) (taka) Rahim operates a small tea stall in his neighborhood…
A: (a) Total cost is sum of variable cost and fixed cost. => Total cost = variable cost + fixed…
Q: The laboriousness for the year will be 457000 standard/hours. The planned fund of working time for…
A: Introduction Total laboriousness for the year = 4,57,000 standard/ hours Working time for 1 worker…
Q: f you opened an account on Year 0 with the amount shown and you deposit and withdraw the following…
A:
Q: I need help with econ multiple hw questions asap! 50)Refer to the attached Figure 16. Which of the…
A: (50). Average variable cost is a part of average cost. Average variable cost goes on increasing.…
Q: 10. Suppose Q = 10,000 – 2 P, + 3 P, - 4.5M, where P, = $100, P, = $50, and M = $2,000. How much of…
A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes downward.
Q: Which of the following statements regarding the long-term equilibrium is TRUE? Question 18…
A: A firm is in long run when the firm can change all inputs and there is no fixed cost.
Q: Frances sells pencils in the perfectly competitive pencil market. Her output per day and costs are…
A: In perfect competition there are large number of firms selling identical goods.
Q: Monopolistic competition is a market structure in which Question 11 options: a small number of…
A: In a monopolistic competition, there are many firms and buyers in the market.
Q: The impact of an increase in government spending would be to a) increase the interest rate b) leave…
A: Government spending is spending on infrastructure, roads and highways, national defense and…
Q: Complete the following graph using the data from the Congressional Budget Office 70 60 Surplus as %…
A: Information is given in the graph: *Green line shows the percentage debt as % GDP.*Red line shows…
Q: Amazon company Describe anything that differentiates a product of your company, anything that…
A: Amazon is an online platform where people can shop for everything from furniture to mobile phones…
Q: Why do firms engage in international trade?
A: International trade involves the exchange of goods, services, and capital between different…
Q: Frictional unemployment can be explained by a situation where Select one: O Close of a business due…
A: The situation where people are able and also willing to work but are not able to find suitable jobs…
Q: . Discuss the concept of externality in health care using the example of vaccination against an…
A: An externality basically refers to a cost or benefit incurred or obtained by a producer or person…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a normal profit. B) zero accounting profit. C) zero economic profit. D) negative economic profit, that is, an economic loss. E) a positive economic profit.The minimum price at which a firm would produce in the short run rather than shut down immediately is the point at which price is equal to marginal cost price equals the minimum point on its average variable cost curve. O price is equal to average total cost O total revenue is equal to total costThe accountants hired by Forever Fitness have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $125,000. Because of this information, in the short run, Forever Fitness should O a. lower their prices to increase their profits. ●b. stay open because shutting down would be more expensive. c. stay open because the firm is making an economic profit. O d. shut down because staying open would be more expensive.
- Consider a perfectly competitive firm with the following marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves. АТС $ MC AVC 150 130 125 110 100 90 50 100 150 200 300 325 Using these curves, the firm faces fixed costs of: O A. $4000, O B. $2000, O C. $20, O D. $200, and average fixed costs when 200 units are produced isIf a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.In the short run, a perfectly competitive firm Select one: a. can earn a small economic profit while being shut down. b. incurs an economic loss if it shuts down. O c. does not consider total revenue in its shut down decision. O d. shuts down if it incurs any economic loss.
- To maximize its profit, in the short run a perfectly competitive firm decides O A) how much advertising it should undertake. B) whether to increase the size of its plant. C) what price to charge for its product. D) whether to exit the market. E) what quantity of output to produce.Suppose solar panel manufacturing is an industry subject to significant economies of scale, and there are currently three solar panel manufacturers all with identical costs. If the demand for solar panels is 5 times the quantity produced at the bottom of the long-run average cost curve, which of the following is most likely to happen to the solar panel manufacturing industry in the long run? O The number of solar panel manufacturers will increase O The price of solar panels will increase O The fixed costs of manufacturing solar panels will increase The quantity supplied of solar panels will decreaseSuppose the firm faces a price of $34, an average variable cost of $35, and has an average fixed cost of $5. In the short-run, the firm O A. should shut down. O B. may or may not produce. OC. may need to raise funds. OD. None of the above. 20 tv MacBook Air 80 DII F6 F7 F10 F3 F4 F5 F9 2# $ & 3 4 8 9 { E R Y P D F G H. K C V N M command op V
- Consider the figure. At the price of $3, the firm's short run decision should be to O A. continue producing, since this is a break-even price. OB. stop producing, since variable costs cannot be covered. OC. exit the market. OD. stop producing, since it is losing exactly all its fixed costs. O E. continue producing, even though it will make a loss. Price ($) Output MC ATC AVCZoe's Bakery operates in a perfectly competitive industry. The variable costs at Zoe's Bakery increase, so all the cost curves shift leftward. The demand for Zoe's pastries does not change, nor does the firm shut down. Hence, Zoe's Bakery will its price and its level of production. O A. raise; increase OB. decrease; increase OC. raise; decrease D. not change; decreaseWhen price and marginal cost are equal for a perfectly competitive firm, the firm is O earning negative economic profit. maximizing economic profit. O maximizing total revenue. O minimizing average total cost.