For an output level below Qr, the value of a unit to a buyer is the cost of a unit to a seller. Suppose a firm that produces for this market is able to influence the market price, which leads to an outcome that differs from the free market which is an example of equilibrium shown in the previous graph. Such a situation is characterized by
Q: Which of the following is the equation for Gross Domestic Product A. G + D + P B. C + G + I + X C. C…
A: GDP is the GDP of a country. It estimates the complete final market worth of all goods and services…
Q: The government wants to address the pollution associated with the production of a good by…
A: When production or consumption of a good causes some damage to a third party not involved in…
Q: 1. What is the marginal rate of substitution?
A: The definition of an indifference curve is a graph that displays possible pairings of two…
Q: Use the table below to answer the following questions: Quantity Demand (Price) Marginal Revenue…
A: In monopoly , Profit is maximum where MR = MC MR is the Marginal revenue MC is marginal cost
Q: a. i. Write an equation to represent the total costs for each location. ii. Draw the total costs…
A: question 2 TC (total cost) is the overall cost that is incurred by the firm. It includes both the…
Q: Why does inflation occur
A: inflation is the pace of inflation in costs over a given timeframe. inflation is regularly a wide…
Q: Three states have (separately) hired you as a consultant to advise them on their pricing of these…
A: Relationship among price, total revenue, and the price elasticity of demand If demand is elastic,…
Q: A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000.…
A: The profit is the difference between the total revenue and total cost of production. The explicit…
Q: You will analyze the Market for Gasoline Step 1: Draw a supply-and-demand diagram. Price is on the…
A: Introduction: The demand curve shifts when the determinant of demand changes such as the price of…
Q: Using data from The Economist's Big Mac Index for 2019, the following table shows the local currency…
A: Purchasing power parties (PPPs) are the rates of currency change that try to equalize the purchasing…
Q: Cost-effective pollution control means that... Mark all that applies. Group of answer choices the…
A: Cost Effective Pollution or emission control is defined as the costs that are related with the…
Q: A firm in a perfectly competitive market has a fixed cost of $5 and a MC function of 9X, where X is…
A: In a competitive market , The optimal production level is where P = MC Where , P is the price MC…
Q: Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the…
A: A Production Possibility Frontier (PPF) is a graph that shows all the possible combinations of two…
Q: What types of things are added or subtracted from GDP to form GPI? (Check all that apply) A. +…
A: GDP tracks shifts in the overall level of production throughout the economy. It is a measurement of…
Q: Joan has the following utility function: u(x, y) = 5x + 3y. Consider that income is I = $8, and…
A: Given Utility function: ux,y=5x+3y ...(1) The price of good x is $4 and the price of good y…
Q: Suppose that you are on the town council, and that the town currently has Q = 11 of this public…
A: Given: 3 individuals benefit from a public good. MC of public good = $15. Three individuals named…
Q: 4. The Solve-It-All Corp. (SIAC) has just developed its newest line of all-purpose mathematical…
A: Profit maximization is the technique used by corporations and enterprises to develop methods to…
Q: 1. Compare the minimum the effects on alcohol consumption of imposing unit price of alcohol with…
A: The expression "duty" alludes to a type of tax collection required on specific products,…
Q: There are two oil producers, Saudi Arabia and Iran (these are countries which we are treating as…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: q2a- Which case is NOT suitable for restricted least squares estimation imposing a restriction to…
A: RLS (Restricted least square) involves restricting the models such that the required estimates can…
Q: 2. Plot the TC, TFC and TVC curves on a single diagram on another. and plot the AC, AFC, AVC and MC…
A:
Q: A decrease in real GDP at the same time that nominal GDP increases would be consistent with: None…
A: Nominal GDP= Current year quantity × Current year price. Real GDP = Current year quantity × Base…
Q: Consider a two-agent two-good barter economy. Agent 1 only cares about good 1, and agent 2 only…
A: Pareto Optimality is defined as the situation of resource allocation in which no individual could be…
Q: Suppose that production function is Y = K¹/³ (AN) 2/3 and competitive firms hire capital and labor…
A: Given, Y=K1/3(AN)2/3 Competitive firms hire capital ad labor to produce outr is the return paid to…
Q: Examine the following table and answer the following question: How do the changes of the economic…
A: Gross Domestic Product (GDP) is defined as the final value of all goods and services produced in an…
Q: Restaurants offer related but differentiated products to their consumers. In the long run, new…
A: Restaurants are part of the Monopolistic Competitions market, in which there are many sellers and…
Q: A fixed capital investment of P10,000,000 is required for a ed manufacturing plant and an estimated…
A: We have, (FC) Fixed capital is P10,000,000 (WC) Work capital is P2,500,000 Annual Depriciation is…
Q: Two products are substitutes if the: a. cross-price elasticity of demand is less than zero.…
A: When two products are substituted for each other then demand for a product will increase if the…
Q: Which of the following would hold true if a country’s export demand is elastic and price of…
A: When demand is elastic , the small increase in price will lead to large decrease in quantity.…
Q: Consider the following graph. The fishery is managed as an competitive (open access) regime. Fishing…
A: The Gordon-Schaefer model is a bioeconomic model that is applied to the fishing industry. It may be…
Q: a.Why did Globalisation happen? b.What impact does Globalisation have? c.Who does Globalisation…
A: The integration of various global economies through trade in commodities, services, and employment…
Q: Under the [Select] electricity during daytime hours. Under the [Select] electricity consumption from…
A: Solar energy is a great alternative to the traditional energy. Due to exploitation and exhaustion…
Q: The soybean industry is a constant cost industry. A new study revealing negative health effects of…
A: Demand and Supply: Demand and supply are two significant concepts in microeconomics that drive…
Q: Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of…
A: When a country is open to trade , the country will trade at the world price. When world price is…
Q: Pick a good or service that is produced in a competitive market. Explain why it satisfies the…
A: Competitive market An competitive market is one with the greatest amount of competition feasible.…
Q: In theory, the Pigouvian tax... Group of answer choices revenue should be spent on mitigating the…
A: Pigouvian Tax is defined as a tax which is levied on the market transaction which tends to create an…
Q: When a bank makes a loan what happens to the amount of money in deposits it holds and to the…
A: Money supply describes the entire amount of money that is in circulation in the economy at any…
Q: Calculate the following, assuming that ta rate = 30%, nominal interest rate = 10%, expected…
A: In economics, the nominal interest rate or nominal rate of interest is either of two distinct…
Q: What happen to the money market equilibrium when the Fed raises its interest rate target to 6…
A: Here, it is given that the Fed increases the target interest rate to 6% when there is an increase in…
Q: A monopoly's economic profits are represented by [marginal cost minus price] times number of units…
A: Answer to the question is as follows:
Q: A computer company produces a $2,000 computer using $1,200 worth of electronic components and $600…
A: Answer to the question is as follows:
Q: What is the name of the U.S. central bank and how can it increase the monetary base? A. the Fed; by…
A: When talking about monetary base of an economy, it can be seen that monetary base can be changed and…
Q: Use the table below to answer the following questions: Quantity Demand (Price) Marginal Revenue…
A: In perfect price discrimination, Firm will charge the price equal to consumer's willingness to pay.…
Q: Mary has the following utility function: u(x, y) = 3 ln(x) + 2y. Her income is given by I = 10 and…
A:
Q: Hat is the NPV of this investment ?
A: Particular Amount Vehicle acquisition cost 48000 Economic life 1 Tax rate 25% ROE 11% ROD…
Q: The table below shows market share data for different firms producing desks. Market Share in % 15 18…
A: HHI is the sum of market share squared. When two companies merge , then the market share of both…
Q: Consider the following linear regression model: Yi = B₁ + B₂x2i + B3X3i + Ci o² = ª₁ + ª2x2i + A3x²½…
A: The regression equation shows the relationship between dependent and independent variables. Simple…
Q: what two factors are considered when comparing different countries' standard of living, and how can…
A: A country's or region's economic material elements are gauged by the level of living. It measures…
Q: 13. Refer to Figure 2. With trade, this country a. exports 160 tricycles. b. exports 320 tricycles.…
A: Consumer surplus is the difference between the maximum price a consumer wants to pay and actual…
Q: 13. Let M denote currency and demand deposits and B the stock of government bonds. Suppose that both…
A: Money is defined as any thing that is often used in a given country or socioeconomic context to pay…
Step by step
Solved in 2 steps
- The concert promoters of a heavy metal band, WeR2Loud, know that there are two types of concert - goers: die - hard fans and casual fans. For a particular WeR2Loud concert, there are 1.000 die - hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc. Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $150 per ticket? Group of answer choices $25,000 $50,000 $ 75,000 $100,000Suppose that an incumbent can commit to producing a large quantity of outputbefore the potential entrant decides whether to enter. So, the incumbent Örst chooseswhether to produce a small quantity or a large quantity. The rival then decides whether toenter. If the incumbent commits to the small output level and if the rival does not enter,the rival makes $0 and the incumbent makes $900. If it does enter, the rival makes $125and the incumbent earns $450. If the incumbent commits to producing the large quantity,and the potential entrant stays out of the market, the potential entrant makes $0 and theincumbent makes $800. If the rival enters, the best the entrant can make is $0, the sameamount it would earn if it didnít enter, but the incumbent earns only $400. Show the gametree. What is the SPNE?COURSE: MICROECONOMICS - Cournot Model:In the market for a given good there are only 2 firms satisfying the demand, and their respective total cost functions respond to the form: CTi = 10Qi + 5 and the demand is estimated to be: P = 31 - QIf the decision variable for both firms is that the quantity they will produce and realize will be decided simultaneously it is asked to:(a) calculate the profit and reaction function of each firmb) graph market equilibriumc) calculate the profits that both companies will obtain in equilibrium
- Assume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?Only typed answer Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $6; Kyle's cost per ton is $10. Assume that the market price of sockeye salmon is $14 per ton. If Kara pays Kyle $5 per ton for his ITQs, and if she then catches her new limit of 4,000 tons, her profit would be?With current technology, suppose a firm is producing 400 loaves of banana bread dally. Also assume that the least-cost combination of resources for producing those loaves is 10 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $20, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the firm's total revenue? What is its total cost? Calculate the amount of economic profit or loss. will R continue to produce banana bread? IClen to select If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? IClick to selectt
- Supposeg1increases, but stillc1+b1+g1<1. Using a graph of the goods market, show how we would represent an increase in the value ofg1on equilibrium output y. Be sure to label all axes, curves, and equilibrium points. Suppose instead,c1+b1+g1= 0. Is the equilibrium in the goods market still possible? If so, what is the equilibrium output? You must explain your answer to receive full credit.Brad is an old mechanic on the street, and he can make Cars and Trucks. He gets paid by the hour, but he has a set number of hours available for work when he is building Cars and/or Trucks. In this case, Brad has 5 total hours of work. Each hour of working can produce either 3 Cars or 1 Truck. With that said, Brad has attained quite a great age, and as a result, he has a constraint in his CAR production abilities. Specifically, Brad has to sit down and take his arthritis medication and relax for 1 hour (rest period) after he spends/allocates the first 2 hours producing CARS. This break of rest for his medication is included as a part of Brad's 5-hour workday. As a result, if Brad chooses to work more than 2 hours for the production of CARS (because he loves his work so much), he has to allocate/spend 1 of his total 5 working hours to taking a break to sit down and take his medication. Additionally, Brad trades his Cars and Trucks with outside market merchants so he can earn money to…Imagine that you arrive at an economics experiment with six other people and are told that you will simulate a market. Graph A You will be the only seller. The other five people will be assigned a dollar value that they will receive if they buy the good for any amount of money (so if a person's value is $5, he will buy the good for any price less than $5 and will be happy). You are also given the marginal cost and demand curves to the right and told that it represents the values that the "buyers" are assigned. Using the graph, the marginal revenue from increasing output from 1 unit to 2 units is O A. 9. О В. 2 O C. 4. D. 3. MC On Graph A: Draw the marginal revenue curve that you face as the monopolist, based on the demand curve given to the right. MR D 1.) Using the multipoint curve drawing tool, depict the marginal revenue curve that you face as a monopolist. Label your curve 'MR.' (Only graph marginal revenues that are equal to or greater than zero.) Quantity Carefully follow the…
- You have recently been hired as the business manager for a small arthouse cinema in Japan. The cinema screens independent arthouse movies aswell as older independent movies. The rights to show these types of movies is negligible (assume the marginal cost equals zero). The business also has a loungethat serves drinks as well as small plates of food. The current business model is that the films are screened for free (movie tickets are free) and the business earns its revenue from sales in the lounge that occur before, during and after thescreening of the films. You have been hired to develop a new pricing strategy to improve profits Your first action was to commission an econometric study to estimate demand and demand characteristics. The study concluded there are two main types of customers having different demand. The study further concluded that the main observable characteristic between the two customer types is age. Note that ageis correlated with unobservable characteristics like…In a typical product mix model, where a companymust decide how much of each product to produceto maximize profit, there are sometimes customerdemands for the products. We used upper-boundconstraints for these: Don’t produce more than youcan sell. Would it be realistic to have lower-boundconstraints instead: Produce at least as much as isdemanded? Would it be realistic to have both (wherethe upper bounds are greater than the lower bounds)?Would it be realistic to have equality constraints:Produce exactly what is demanded?A4 1. Two chemical companies, A and B, operate in a small New England town. Every week A releases 40 gallons of dioxin into the town’s aquifer, while B releases 30 gallons during the same time frame. It would cost A $800 per gallon to clean up its production, while B can clean up its waste at a cost of $500 per gallon. After this issue is raised at a town hall meeting, the town’s residents vote to reduce total dioxin pollution to 20 gallons per week. a. What would be the total cost of pollution reduction if each company were limited to 10 gallons of waste per week? b. What would the total costs be if each company received 10 gallons worth of tradable pollution credits? 2. A wheat farmer and a cattle rancher occupy adjacent parcels of land. Every year the farmer builds a fence to keep the cattle out of his field, and every year the rancher tears the fence down so that the cattle can roam free. The farmer values the wheat that gets destroyed at $300, while the rancher values having a…