In a Cournot duopoly firm 1’s best-response function is downward sloping because when firm 2 produces more: A) Firm 1’s marginal cost goes up, so firm 1 produces less. B) Firm 1's average cost goes up, so firm 1 produces less. C) Firm 1’s marginal revenue goes down, so firm 1 produces less. D) Firm 1’s total cost goes up, so firm 1 produces less.

Q: Price discrimination creates economic inefficiency. False True True, if the firm is a monopolist,…

A: Price discrimination is charging different prices for the same goods and services. The seller of the…

Q: QUESTION 25 A tax cut shifts the aggregate demand curve the farthest if     a.     the MPC is…

A: The demand for goods and services made by all of the consumers in the economy is known as aggregate…

Q: Hope is offered the choice between either taking $10 or flipping a coin. If the coin shows heads,…

A: The phrase "risk" refers to the possibility that the actual benefits made from an event or…

Q: QUESTION 18.1 CHOOSE THE CORRECT ANSWER(S) Figure 18.3 (page 800) depicts the supply curve in the…

A: When a country enjoys free trade with another country, the equilibrium situation is reflected by the…

Q: a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y,…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The disadvantages of using letters of credit for payment

A: A letter of credit is a written promise from a bank or other financial institution that a seller…

Q: As in the lemons model, suppose that there is one seller and one buyer who may exchange a good of…

A: Given information Seller=1 Buyer=1 Sellers values the good=V Buyers value the good=3V/2 Trade may…

Q: For all points below the 45 degree line, planned aggregate expenditure will be less than GDP. True…

A: Planned aggregate expenditure is the sum of consumption, planned investment, government spending,…

Q: In markets that are not perfectly competitive, ________.   A. minimum transfer price will equal the…

A: Perfectly competitive market refers to the market where many sellers exists in the market and firms…

Q: ou run a shop that sells everything connected with coffee. Currently, you sell 21 coffee makers per…

A: The cross-price elasticity of demand measures the responsiveness of change in demand of one good to…

Q: Seatwork on Fiscal Policy Given: Initial Consumption at Zero Disposable Income (b) = 75 Marginal…

A: Initial consumption when the disposable income is zero is the autonomous consumption.(C0) = 75 Here…

Q: Select the correct answer from the terms provided to complete the sentences below. There are more…

A: Let X follows a uniform distribution which can take values within the interval [a,b]And we have:…

Q: QUESTION 26 Which of the following best illustrates the unit of account function of money?     a.…

A: Money is defined as anything that is generally acceptable as a medium of exchange and at the same…

Q: Draw a production possibilities frontier (PPF) for oil and food, where food production (Qf) is in…

A: Two countries trade with one another on the basis of differences in factor endowments. The…

Q: Referring to the graph below: a. Is this firm operating in the long run? How do you know? b. What…

A: In perfect competition,  In long run , a firm will produce where P = MR = MC = ATC  So, There will…

Q: See the cost information in the table below. The marginal cost of the 6th unit is Quantity…

A: Marginal Cost refers to the additional cost incurred due to production of an additional unit of…

Q: In an effort to stabilize the economy, is it best for policymarkers to use monetary policy, fiscal…

A: The aggregate demand-aggregate supply (AD-AS) model shows how the level of prices changes and how…

Q: -600 + 10PX Where Px is the sales price of good X, M is average consumer income, PR is the price of…

A: An inferior good is one whose demand drops when people's incomes rise. When incomes are low or the…

Q: Nn3

A: Under monopolistic competition, the firm maximizes its profit when the marginal revenue is equal to…

Q: Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: How might advertising lead to a shift in the demand curve? By increasing the popularity of inferior…

A: Demand curve is the curve which shows all the possible combination of the quantity demanded at the…

Q: Follow the five steps procedure to find the profit maximizing output, price, and profit for a…

A: In a monopoly ,  There exists a single firm.  Profit maximizing quantity is where MR = MC  MR is the…

Q: Refer to the figure above. Favorable terms of trade for country B would allow country A to: O obtain…

A: Given information: There are two countries, i.e., Country A and Country B Both countries produce two…

Q: Price, Cost P4 P3 P2 P₁ I 1 MR ATC MC D I Q₁ Q2 Q3 Q4 Quantity The graph above shows the cost and…

A: In a monopoly market ,  There exists a single seller.  The monopolist will produce where MR = MC to…

Q: Suppose the production function for a competitive firm is y=f(x1,x2)= x1 1/4 x2 1/4 . The cost per…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: Assume that the economy is operating with falling real GDP and higher than usual unemployment. What…

A: A country's actual gross domestic product (GDP), which is inflation-adjusted, is used to calculate…

Q: A recent hot issue in Ghana is energy. Suppose the demand for energy is described by Q-50-0.5P and…

A: Provided information: It is provided in the question that: Demand of energy: Q = 50 - 0.5P Supply of…

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: A lump sum tax, which has a definite amount, is imposed on an economy. Income levels of individuals…

Q: If we are close to or at full employment an increase in the money supply will lead mainly to:     A.…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  AD = C…

Q: Which of the following is true for this profit-maximizing firm at price P in the graph below?…

A: Profit maximisation is a process that businesses go through to make sure the best levels of output…

Q: The Federal Reserve Bank of New York has a great deal of influence over financial markets to this…

A: The Federal Reserve System or the Federal Reserve are other names for the Fed. It serves as both the…

Q: People frequently consume more than they realize in the commons issue because Group of answer…

A: People frequently consume more than they realize in the commons issue because in the common dilemma,…

Q: If the exchange rate between the U.S. dollar and Japanese yen changes from $1=70 yen to $1=100 yen,…

A: Under monetary policy, the devaluation means that the value of currency is reducing within the fixed…

Q: You realize that a. both the mayor and the city manager think that demand is elastic. b. both the…

A: TR = P . Q(P) Now differentiate with respect to P  dTR/dP = P . dQ/dP + Q  dTR /dP = Q ( 1 - |e|)…

Q: In economics, an index of risk aversion is defined as: I(m) = -U" (m) U'(m) where m measures how…

A: Index of Risk Aversion: I(m) =-U''(m)U'(m) Risk-averse individuals are people who hate risk and want…

Q: If planned aggregate spending in an economy can be written as PAE = 15,000 + 0.6Y − 20,000r,…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  Planned…

Q: 6.6) Which of the following statements about the open-economy IS curve is correct (a) It is steeper…

A: The measure that depicts the output level and level of rates of interest at which total saving in…

Q: How do you find the new equilibrium price?

A: Equilibrium is where the demand curve intersects the supply curve.  At the intersection point , both…

Q: Which of the following is a bilateral monopoly?   A) A perfectly competitive firm in the output…

A: A monopoly firm is a single seller in the output market. A monopsony firm is a single buyer in the…

Q: An investor gathers the following information about a company: $5.00 Current earnings per share…

A: Return is a profit on an investment. It contains any adjustment of the worth of the investment, as…

Q: Before Phelps’s work, the prevailing view was that economic policy makers faced a tradeoff between…

A: Introduction In times of high inflation, unemployment is low. On the other hand, when inflation is…

Q: Exercise 3: merger example Algoma Steel Inc. and Stelco Steel Inc. Merger? Suppose you work at the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: This question addresses the impact of saving on an economy by examining what happens if tax laws…

A: As per economics, the loanable fund's belief is a theory of the market interest rate. As per this…

Q: Assume that a country produces wine and cheese with Leontief technology that uses labour and land as…

A: Leontief production function represents technology in which input are used in together in fixed…

Q: Based on your current quantities and costs, can you sell a hamburger for $2 and still make a profit?

A: Profit refers to the money you have left after paying for business spending. There are 3 main types…

Q: Figure 18-1 OUTPUT (Units) 28 26 23 19 14 8 1 2 3 LABOR (Number of workers) 4 5 6 Refer to Figure…

A: The marginal product of a business is the extra output created as a result of extra input placed…

Q: What amount of money invested today at 15% interest can provide a scholarship of P50,000 at the end…

A: Investment: The purchase of things that won't be used today but will be used in the future to…

Q: The following graph plots a short-run Phillips curve for a hypothetical economy. Show the short-run…

A: The Phillips curve depicts the correlation between the unemployment rate and the rate of inflation.…

Q: A firm produces output with the production function, Q = F(K, L) = K0.5L0.5 with r=4 and w= 2. The…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: Real GDP $2,000 2,500 3,000 3,500 Consu mption $1,600 2,000 2,400 2,800 Planne d Invest ment $250…

A: The formula to calculate the GDP is given by: Y = C+I+ G+ NX Where Y is the GDP, C is the…