mc ATC da 2 P₁ Pat 9993 d₁ single firm D qf 8 Q Q Industry 3 P A me D Ame Q. single firm Q #38) An oligopolist may be described as one or more of fou possible variants of price-output behavior as discussed in class. Briefly describe the pertinent variant as it applies to each graph above.
Q: Table 29-1 Effects of an open-market transaction on the balance sheets of Banks and the Fed (in…
A: The central bank performs OMO (Open Market Operations). Under OMO, it either buys or sells…
Q: At 10 million hours, what areas make up the total economic surplus in this market?
A: It occurs when the quantity(Q) demanded by consumers equals the quantity(Q) supplied by producers at…
Q: Consider the national market for in-home child care in the accompanying graph. Rate ($ per hour) $20…
A: The customers and sellers interact in a location to exchange products is called a market. The…
Q: elasticity of the demand
A: The "change in demand" refers back to the alteration in the quantity of a terrific or carrier that…
Q: Table 7-1 Buyer Willingness To Pay Calvin $150.00 Sam $135.00 Andrew $120.00 Lori $100.00 Refer to…
A: A consumer's willingness to pay refers to the amount they are willing and able to pay for the…
Q: The difference between technology and technological change is that technology refers to the…
A: Jacob Mincer came up with the expression "technology" in the essay "Investment in Human Capital and…
Q: Sellers of a product will bear the larger part of the tax burden, and buyers will bear a smaller…
A: Tax burden is the proportion or percentage of the tax that a seller or consumer faces when the…
Q: 2. A firm has a cost function of C = 1000+ 20Q + 1/10Q² and has a demand function as shown in the…
A: The cost function is the mathematical relationship between the output and the cost of production. It…
Q: C. Please draw and describe the shut-down point and the economic loss when the price is $4. Price 12…
A: ans is given in explanation section with graph so check out below.Explanation:Step 1: Step 2: Step…
Q: The following is the graph of the natural log of UK real GDP per capita between 1875 and 2014: Based…
A: We should identify the right statement following the diagram presenting the natural log of the UK…
Q: Which of the events in the table increase the equilibrium quantity of labor and which decrease the…
A: The equilibrium quantity of labor is determined by the intersection of the labor supply and labor…
Q: 2. Total and marginal net utility The following table shows Cho's total utility from eating cakes.…
A: Total Utility (TU): Total satisfaction from consuming goods/services within a period. It's the sum…
Q: lease describe the effect on quantity and price when firms have an incentive to exit the market.…
A: When a firm has an incentive to exit the market, it typically means that the firm is experiencing…
Q: Consider the total cost and total revenue of Farm Fresh Diary Output Quantity (Milk…
A: The total cost is all the expenditures incurred by the business in the process of creating and…
Q: Refer to the figure above. Fixed cost for this firm is: A. $66 B. $64 C. $50 D. $14 The…
A: To determine the fixed cost for this firm, we need to understand that fixed costs are expenses that…
Q: You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly…
A: A mortgage is a type of loan specifically used to purchase real estate, such as a home or a piece of…
Q: THE BIG SHORT THIS IS A TRUE STORY 2) Subprime CHRISTIAN BALE STEVE The Big Short Coordinating…
A: 1. In the 1970s, the mortgage market shifted toward granting adjustable-rate mortgages (ARMs) and…
Q: Determine whether the statement is TRUE or FALSE. Support your answer based on the concepts of money…
A: The currency deposit ratio denotes the percentage of bank deposits maintained as physical currency…
Q: 37. Which of the following should be the basis for moral judgment?a. Limiting the moral rights of…
A: d. Maximizing the net utility of actions.Utilitarianism, a consequentialist ethical theory, suggests…
Q: A plot of the yields on bonds with different terms to maturity but the same risk, liquidity, and tax…
A: Expected interest rates implies the anticipated future levels of interest rates. They are based on…
Q: Consider one-person one producer economy. Compute the equilibrium prices, consumptions, and profits…
A: A utility function represents a consumer’s preferences for a set of goods and services…
Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…
A: The objective of the question is to calculate the rate of return made by Chemco Enterprises on the…
Q: Complete the following table, given the information presented on the graph. Result Value Per-unit…
A: Consumer surplus is the benefit that the customer receives from purchasing the commodity at a price…
Q: You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly…
A: The objective of this question is to calculate the monthly payment for a 30-year mortgage loan of…
Q: 4. There are two different market under the Galata Bridge. One of them is fried fish sandwich and…
A: “Since you have posted multiple questions with multiple sub-parts, we will provide the solution only…
Q: 4. A firm in a purely competitive industry is currently producing 1, 500 units per day at a total…
A: Total cost refers to the cost of production a firm incurs at different levels of output.Average…
Q: Some observers have noted that by adopting VERs instead of tariffs in recent years, the United…
A: The practice of trade restrictions can be traced to ancient civilizations such as the Roman Empire,…
Q: 43. The process of sharing goods, services, knowledge, and cultures across national borders is…
A: d. globalization.Explanation:Option a: This option is incorrect because multinationalism refers to…
Q: Consider an economy with 520 people in the labor force. At the beginning of every month, 6 people…
A: The unemployment rate is a metric that measures the percentage of individuals within the workforce…
Q: Suppose there are four people in the market, two people with u=X1X2 and two people with…
A: We should assess the joint demand for good X1 going by through those markets with three people at…
Q: 2. Consider a consumer whose preference relation over the consumption set X = R³ can be repre-…
A: A utility function is a mathematical illustration that assigns a numerical value to the pleasure or…
Q: Hide Image Transcript Mildred can purchase a municipal bond with a par (face) value of $1000 that…
A: The objective of this question is to calculate the rate of return that Mildred will earn if she…
Q: What does GDP stand for in economics? A) Gross Domestic Profit B) Gross Domestic Price C) Gross…
A: GDP refers to the total monetary value of all final goods and services that a nation produces in its…
Q: Price Quantity Demanded (business travelers) Quantity Demanded (vacationers) . $150 2,100 tickets…
A: The given data are-For the tickets of business travelers-For the tickets of vacationers-
Q: Scenario 21-3 Scott knows that he will ultimately face retirement. Assume that Scott will experience…
A: Saving refers to the demonstration of setting to the side a part of one's income or resources for…
Q: In the long run, firms in a monopolistically competitive market will earn __________ profits.…
A: The question is asking about the long-term profit outcomes for firms operating in a monopolistically…
Q: Consider an exchange economy with two individuals, a and b, and two goods, x and y. Individual a has…
A: Vilfredo Pareto, an Italian economist, introduced Pareto efficiency back at the beginning of the…
Q: Farmer Smith grows apples. The average total cost and marginal cost of growing apples for an…
A: Answer is 70.Explanation:Under perfect competition, profit is maximised where MR=MC. But in perfect…
Q: Open interest will increase each time a trade is opened and decrease each time a trade is closed.…
A: Open interest refers to the total number of outstanding or open positions in a futures or options…
Q: The insurance levy in Manitoba is an employee eligibility to HAPSET. Select one: True False
A: The question is whether there’s any link between the Province of Manitoba premium and being…
Q: The figure below shows the national market for mopeds in a small country. Dd and Sd are the domestic…
A: A tariff is a tax or duty imposed by a government on imported or exported goods. The purpose of a…
Q: Regional trade blocs
A: Regional trade blocs talk to agreements among a couple of countries within a specific geographic…
Q: Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t =…
A: In a monopoly market, a lone seller or producer holds sway over the complete supply of a specific…
Q: The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP…
A: your answer is given belowExplanation:
Q: per pound. From the graph, you can see that this means there will be firms operating in the…
A: Market demand means the quantity of goods that all the consumers in a market are willing and able to…
Q: Lori is a student who teaches golf on Saturdays. In a year she earns $20,000 after paying her taxes.…
A: Wealth measures the value of all the assets of worth owned by a person, community, company, or…
Q: 40 5 35 30 30 MC, AC 25 25 20 15 10 10 5 MC AC q 100 200 300 400 500 The graph shows average and…
A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…
Q: Please Draw a diagram for Saving and Investmetn in a small open economy. Assume the world real…
A: We draw savings and investment in the open economy and there is a difference between savings and…
Q: 4. For a monopolist with marginal cost of c, where c> 0, facing a market demand of X(p) a bp, derive…
A: A monopolist is a financial agent who has exclusive control over the manufacturing or supply of a…
Step by step
Solved in 5 steps
- Suppose that a particular industry has a four-firm concentration ratio of 45 and a Herfindahi index of LS40. Most ikety, this industry would ochieve Mutipie Chaice both productive efficiency and allocative etficency wllocative efficency but not productive effcency nether productive efficiency nor allocative efficiency productive efficiency but not allocative efficiencyThe graph below represents sales per week of ABC Inc. Ltd, a monopoly multinationalenterprise that supplies Hi-tech components. Use the graph to answer the questionsthat follow i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the long run? Explain your answer. Assume all factors constant. iv. Examine the effects of ABC Inc. Ltd on consumers.What are oligopolists said to be doing when they determine price and output decisions jointly? O corroborating combining coexisting ) colluding
- The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinationalenterprise that supplies Hi-tech components. Use the graph to answer the questionsthat follow i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the longrun? Explain your answer. Assume all factors constant.iv. Examine the effects of ABC Inc. Ltd on consumers.For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of $14 million, and Lucky Bird will make a profit of $3 million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both profit- maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of $ advertise. million if Full Coop advertises and a profit of $ million if Full Coop does not If Lucky Bird chooses not to advertise, it will earn a profit of $ not advertise. million if Full Coop advertises and a profit of $ million if Full Coop does S If Full Coop advertises, Lucky Bird makes a higher profit if it chooses If Full Coop doesn't advertise, Lucky Bird makes a higher profit if it chooses Suppose that both firms start off by deciding not to advertise. If the firms act independently, what strategies will they end up choosing? Both firms will choose not to advertise. O Lucky Bird will choose not to…. When Chinese automakers began exporting cars, rather thanfocusing on developed nations in the West, they shippedautos to emerging markets in countries such as Algeria, Russia,Chile, and South Africa. In these markets, even used vehiclesfrom multinational manufacturers are relatively scarce—andrelatively expensive. The Chinese automakers, who prioritizelow cost rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who boughta new Chery S21 explained, “The price factor is fairly decisive.I paid $5,500 new and full. Toyota with similar features costsaround $12,000.” Why do you think Chinese automakerschose that pricing strategy? Do you think it was successful?As Chinese regulators pressure these manufacturers to maketheir cars safer, do you think they will be able to keep theirprices low compared with those of the international automakers? Why or why not?26
- Kate and Alice are small-town ready-mix concrete duopolints. The market demand tunction is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alice's profit when Kata enters the market tirst, compared to when they simultanecusly select ther outputa? When Kate entors the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is 513,333.33 lower. O When Kate enters the market first, Alice's profit is $5,000 lower. O When Kate onters the market first, Alice's proft is $1.111.11 higher,4:21 lLTE Work 13. In the Nash equilibrium of a prisoner's dilemma: 14. Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product 4 3 2 D 0 0 50 200 100 150 Quantity Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by red ucing its price to $1 and Acme matches the price cut, then if consumers are evenly split between the two firms, Acme's economic profit will be Price ($/unit)Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?
- This chapter discusses companies that areoligopolists in the markets for the goods they sell.Many of the same ideas apply to companies that areoligopolists in the markets for the inputs they buy.a. If sellers who are oligopolists try to increase theprice of goods they sell, what is the goal of buyerswho are oligopolists?b. Major league baseball team owners have anoligopoly in the market for baseball players. Whatis the owners’ goal regarding players’ salaries?Why is this goal difficult to achieve?c. Baseball players went on strike in 1994 becausethey would not accept the salary cap that theowners wanted to impose. If the owners werealready colluding over salaries, why did they feelthe need for a salary cap?The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinationalenterprise that supplies Hi-tech components. Use the graph to answer the questionsthat follow.i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd.iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the long run? Explain your answer. Assume all factors constant.iv. Examine the effects of ABC Inc. Ltd on consumers.2. The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is:P = 8 - 0.005Qdwhere P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output.a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw?b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh?c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…