In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a quantity of 100 units, average total cost is $4, and average variable cost is $3. In the short run, firms will:
Q: loans e) The bank also has a stated policy of not allowing the overall ratio of bad debts on all loa...
A: The correct answer is given in the second step.
Q: A man bought a machine for $ 884577 six years ago. It has a salvage value of $ 37642 four years from...
A: Answer is given below
Q: 5- a) There are 3 firms competing over quantities. The market share of firm 1 is 0.3 and its margina...
A: PLEASE FIND THE ANSWER BELOW.
Q: How does tax affect a firm's fixed, marginal and average costs? 1. When firm must pay lump sum tax (...
A: The tax is divided into the two parts : Lump sum tax and specific tax or per unit tax. Lump sum tax ...
Q: Categorize the terms based on whether they are used to calculate GDP based on the components of dema...
A: Demand-based GDP or Expenditure approach deals with money spent on goods and services within the geo...
Q: Compare and contrast the three black leaders: Booker T. Washington, WEB Du Bois, Marcus Garvey.
A: If we consider the history of the American economy then black people can be considered here as the m...
Q: Course: Microeconomics - Intertemporal Consumption Given the following data: ; where p1 = 10; m1 (in...
A: For intertemporal choice problems firstly we derive the aggregate budget constraint . Budget Constra...
Q: What is internal and external economics? How many types are there in the internal and external econo...
A:
Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...
A:
Q: Jan Aart Scholte (2000: 15-17) has argued that at least five broad definitions of ‘globalization’ ca...
A: Globalization, according to Jan Aart Scholte, is defined as "internationalization."Globalization is ...
Q: 2. How long will it take $500 to reach $10,000 when it grows at 8 percent per year?
A: Here the future worth of amount is already given and the initial investment which will grows 8% per ...
Q: Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, ...
A: Method 1 Regulation:- Firm The first unit of production + The second unit of production Fi...
Q: Consider a "punishment" variation of the two-firm oligopoly situation shown in the figure below. Sup...
A:
Q: c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain (i) You...
A: Saving: This defines that when a person's income exceeds his consumption is called savings which mea...
Q: what models have the best explanatory power and explain why? Sectoral model Electoral model Societal...
A: The regression model can be written as : Y = a + b X + e Where Y = Dependent variable a=...
Q: uppose that the market demand for a certain product is given by P=370−2QP=370−2Q, where QQ is total ...
A:
Q: 1.2 When Acme Dynamite produces 200 units of output, its variable cost is S3,000, and its fixed cost...
A: Variable costs change based on the amount of output produced. Variable costs may include labor, comm...
Q: The Code argued that "the law of nations and of nature" had never recognized slavery and knew "no di...
A: If we consider the American economy then there is so much discrimination happened on the basis of co...
Q: A monopolist charges a single price for its product, sells 100 units, and has a marginal revenue of ...
A: Q = 100 MR = 30 MC = 500 Fixed Cost = 500
Q: Explain the difference between saving and investment as defined by a macroeconomist
A: According to macroeconomist, Savings refer to excess of income over consumption. This implies saving...
Q: What is the amount of shortage or surplus in the corn market as result of the price floor? If the go...
A: A price floor exists when the price charged is greater than or less than the equilibrium price set b...
Q: What is the theory of liquidity preference?
A: Liquidity Preference theory said that investors should expect a more/higher interest rate or premium...
Q: Instructions: Enter your responses as a whole number. a. what was the prevailing computer price in 1...
A: (A) According to the table provided in the problem, the current computer price in 1978 was $1,000. ...
Q: 12. Prove, using Eq. (4-42), that the long-run supply curve of a competitive firm is more elastic th...
A: Introduction Long run supply curve is more elastic because we have enough time for doing adjustments...
Q: What are the merits/advantages and the demirits/disadvantages/limitations of law of diminishing retu...
A:
Q: Create a table describing input combinations of labor and wheat flour in producing a certain cake. T...
A: An isoquant depicts all possible combinations of elements that result in a specific outcome.
Q: he December 13, 2005, press release of the Federal Open Market Committee (FOMC) stated that it “deci...
A: Given: A rise in the federal funds rate by 25 basis points to 4¼ percent
Q: Consider the three-player game depicted in the following figure. If larger payoffs are preferred, do...
A: Given information
Q: Explain the effects of the following statements to the equilibrium of supply and demand. Use supply-...
A: The link between the amount of a product that producers want to sell at different prices and the qua...
Q: The regional wage board declared an across the board (nationwide) average 3.4% increase in the 2021 ...
A: % Increase (change) in minimum wages: 3.4% Current minimum wage earning labor force = 2.332 million ...
Q: Why is it not efficient if a city zone land for open space without buying the land?
A: Public goods are non rival in consumption and non excludable.
Q: Production, Costs, and Perfect Competition: Firm in the Short Period a. data (1) K = 7 and the price...
A: We have given that the firm is in short-run and capital is fixed at k=7, the Q Output Labor L 0...
Q: Which of the following is not a determinant of economic growth? O a. Growth in physical capital. O b...
A: Economic growth is defined as the process whereby the final goods and services increase in the econo...
Q: A basket contains 1460 fruits. Using stratified sampling method, a sample of 150 fruits from each ty...
A: Given:Total sample size=150Total fruits (Entire population)=1460Total plums (Layer size)=584
Q: Consider the same Stackelberg game with three firms as described by the previous question. Firm 1 ch...
A: In a Stackelberg competition with n number of firms, one firm acts as the leader with the remainder ...
Q: Briefly describe the demirits of state enterprise in the field of national income?
A:
Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the...
A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in...
Q: Consider the diagram below depicting the demand and cost conditions faced by a monopolistically comp...
A:
Q: It is not unusual for a country like ours, Philippines, to be hit by disasters like hurricanes. When...
A: When there is any disaster happened then it will lead to affect the supply first, due to less supply...
Q: Apples and oranges are substitutes. A freeze in Florida destroys most of orange crop. What would you...
A: Substitute goods: When two goods are available then an increment in the price of one good, will lead...
Q: What do you tell your boss (estimate of the number of additional workers in Manila who would lose th...
A: The regional wage board declared in across the board with te average of 3.4% of increase, but with t...
Q: A company has planned to have a space with three options lease, buy, and loan. As the equivalent uni...
A: Introduction EUAC tells about equal uniform annual cost. At 0% interest rate: If you buy a space the...
Q: What is the meaning of economic dynamics and what is iys significance and importance?
A:
Q: D1. LR Agg S P. P, Agg a, ON We can say that O In the long run, P and Q will re O In the long run, Q...
A: Aggregate supply is the total amount of goods and services that firms are willing to sell at a given...
Q: Relative to a monopoly charging a single price to all consumers, perfect price discrimination produc...
A: Producer surplus is the difference between how much a person would be willing to accept for given qu...
Q: In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15 millio...
A: In 2014, GDP = $12 million The price of the market basket =$40. In 2020,GDP = $15 million The price...
Q: 1. Charging individual prices that are based on consumers' willingness to pay is A government price ...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...
Q: 20 Price 18 16+ 14 Supply 12 10 6 Demand 2. 10 20 Quantiy 30 40 60 70 80 a. At the equilibrium price...
A: The total surplus is sum total of consumer surplus and producer surplus.
Q: 21. Maximum revenue and profit. A company manufactures and sells x television sets per month. The mo...
A: Answer: Given, Cost function: Cx=72,000+60x Demand function: p=200-x30 0≤x≤6,000 (A). Let us firs...
Q: Assume that Lucky Bank is required to hold a 10% deposits as reserves, and there is a $3000 increase...
A: PLEASE FIND THE ANSWER BELOW.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.Firms in the market for dog food are selling in a purely competitive market. A firm producing dog food has an output of 10,000 pounds of dog food, for which it sells for $0.50 a pound. At the output level of 10,000 pounds the average variable cost is $0.40, the average total cost is $0.70, and the marginal cost is $0.50. (a) What would you expect the firm to do in the short run? Explain.Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.
- The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than marginal cost. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Average total cost will decrease. The quantity supplied by each firm will decrease. The total quantity supplied to the market will decrease. Marginal cost will decrease. The price of fertilizer will increase.Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than average total cost. The following graphs show the cost curves faced a typical firm, the demand for fertilizer, and possible price and supply curves. (? (? Firm Market Demand ATC TAVO MC Quantity Quantity Price and Costs P. Price
- The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including number of firms, is possible. We have identical firms, each with a Total Cost curve of TC=862+q^2 and Marginal Cost curve MC=2q. Market demand is Q=856-2P. What is the number of firms in the market in the long run equilibrium?The graph shown displays the cost curves for a firm in a perfectly competitive market. If the market price is $100, which of the following statements is true?graph_q10 This firm will earn positive profits in the short run. In the long run, the market supply curve will increase. Profits for this firm will decrease in the long run. I only I and II I and III I, II and IIIThe hardware industry is perfectly competitive. Currently the price of a hammer is $5 and there is a balance between the number of hammers purchased and the number of hammers manufactured. However, the minimum average total cost of hammers is $7.50. Which of these scenarios is most likely ? Select one: A. Firms will enter the industry and the price will fall to $4 B. Firms will enter the industry and the price will stay at $5 C. Firms will leave the industry but the price will stay at $5 D. Firms will leave the industry and the price will rise to $7.50
- A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in the market. Each firm's Total Cost function is TC=538+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=488-P. What is the quantity produced by each firm in the short-run?In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market is $50. a. What is the Marginal Cost for the firm? b. What is the Profit Maximizing Output? c. What is the Total Profit the firm receives? d. Should this firm continue to produce in the short run? Please explain. e. If the price is $20, should the firm continue to produce? Please explain.