me second-order conditions for a firm maximizing its profits operating in a perfectly competitive market include all of the following exe Multiple Choice (²(Q)/Q²)< -(dMC/dQ) <0. (d²π/dQ²) <0. (d²π/dQ²) = 0.
Q: The following diagram shows supply and demand in the market for laptops. 150 135 120 PRICE (Dollars…
A: Introduction Supply and demand is an economic model that explains the relationship between product…
Q: Consider the demand curve P=16-0.4Q . Draw the demand curve and indicate which portion of the curve…
A: Introduction The correlation between a product's price and the quantity that customers are willing…
Q: Can you please give me a plagiarism free solution. What is the pro and conc of an open economy.
A: An open economy is a type of economy that trades products, services and financial assets with other…
Q: - The non-economic effects of unemployment include the loss of skills and self-respect, family…
A: Unemployment When a person is able and eager to work, but they are not employed, they are considered…
Q: 3. Indicate whether each of the following statements applies to macroeconomics or to microeconomics.…
A: Microeconomics is a subfield of economics that examines how people, businesses, and other…
Q: Which of the following statements about the indifference curve is true? A. A finite number of…
A: An indifference curve depicts the combination of two goods that the consumer consumes and derives…
Q: When using a production possibilities frontier (PPF), a trade-off is demonstrated by a movement from…
A: Introduction The production possibility frontier (PPF) is a graphical representation of the…
Q: Which of the following economic changes are consistent with demand-pull inflation? Check all that…
A: Demand-pull inflation occurs when there is an increase in aggregate demand for goods and services…
Q: An increase in the unemployment rate to 7.4% has occurred. Inflation has increased causing a decline…
A: The increase in unemployment rate, inflation, and decline in exports have led to a significant…
Q: Bank of Canada The Bank of Canada lowered overnight rate target to 1/4 percent on March 27, 2020 due…
A: Macroeconomics is the branch of economics that studies how an economy functions as a whole. It is…
Q: Suppose Mai estimates two demand curves, one for data collected over a two-week period for her…
A: A strong statistical technique that enables you to look into the connection among two or more…
Q: (a) Find the optimal allocation (C", L"), in which Robinson Crusoe acts as a social planner. (b) Now…
A: L + R = 10 C = 4√L ……………………… eq ( 1 ) U (C, R) = CR …………………eq ( 2 ) L = 10 – R Put Value Of L In…
Q: What happens to Robinson’s budget line? Show on the graph. 5. Try to write the budget line…
A: The budget line equation shows how many units of the concerned goods the individual can afford. It…
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 5 and…
A: Changes in national income and economic growth are examples of economic fluctuations. These…
Q: Using supply and demand diagrams, SHOW AND EXPLAIN the market of onions (red or white) based from…
A: Demand and supply are the cornerstones of microeconomics. Effective demand is just the total amount…
Q: At the 15% interest rate, the Net Present Value (NPV) of the following profile is $5,000. Determine…
A: Rate of interest =15% NPV =$5000 Present value formula: For equal payment series: P=1+in-11+ini For…
Q: A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling…
A: A rate of return (ROR) refers to a net loss or gain on an investment over a defined time frame, and…
Q: How long will it take P500.00 to be four times its value if invested at the rate of 10% compounded…
A: In this problem, we'll calculate how long it will take for P500.00 to P2000 in value if invested at…
Q: You just made an investment in an insurance policy that is guaranteed to pay you $2.6 million 20…
A: The quantity of goods and services that can be purchased with a monetary unit is referred to as its…
Q: Why would you expect sellers of branded goods with high upfront research and development costs to be…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Part 2: GDP is a measure of our economic well-being, though this measure omits some things that are…
A: Gross Domestic Product (GDP) estimates the financial value of the consumable products and services…
Q: a) If the total benefits to society of achieving some specific level of pollution control are…
A: Externalities refer to activities that may negatively and positively impact society. Those…
Q: Demand curve that faces a monopolist
A: The inverse demand function that the monopolist faces is :- P = 30 - 3 Q for the demand function Q…
Q: Which of the following would be part of Canada's current account? a new office building purchased by…
A: A country's balance of payments, which tracks all foreign transactions between its citizens and…
Q: How much will a deposit of P1,000.00 be in 20 years at an interest of 6% compounded annually? A.…
A: Future value refers to an amount that will accrue over defined time with the given discounted rate…
Q: a. Illustrate the impact on equilibrium price and quantity of the following: i. Market for laptops…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: You are the manager of a midsized company that assembles personal computers. You purchase most…
A: The supply curve describes the relationship among the product's price and the quantity producers…
Q: US donates made-in-US vaccines to South Africa. How is the transaction recorded on the U.S. balance…
A: The balance of payments (BOP) is a record of all economic transactions between residents of one…
Q: Consider golfers who led the PGA in winnings at different points in time. Note that the winnings are…
A: Real value is the value without taking the inflation into account. Nominal value is the value which…
Q: The information problem of central planning is related to the incredible amount of information…
A: The information problem of central planning is the difficulty in obtaining and processing the vast…
Q: Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college…
A: CSPI stands for College Student Price Index. It is a price index. There is a market basket that…
Q: 2. Consider a competitive firm which uses three inputs K (capital), L (labor), and A (office space)…
A: Given production function Q=AK23LIt can be wriiten as :Q=A*K2/3L1/3Cost functionC=1*L+2*K+4*A
Q: How Zomato get benefitted by acquiring Blinkit
A: By purchasing Blinkit, Zomato has joined the frantic race for online success. In an effort to grow…
Q: Please Can you work on the diagrams. I cannot view the diagrams for the answers provided
A: In this case, we have to draw the indifference curve of Felice where indifference curve actually…
Q: Do you observe a Phillips curve, a reverse Phillips curve, or no relationship in the long-run?…
A: Phillips curve is a graphical representation which depicts the relationship between the inflation…
Q: Dennis Lamenti wants to buy a new car that costs $15,824.24. He has two possible loans in mind. One…
A: By definition, simple interest is the interest amount for a specific principal amount of money at…
Q: a price change causes the quantity demanded of a good to fall by 30%, while total revenue rose by…
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…
Q: Utility functions are simply mathematical representations of preferences. (a) True (b) False
A: Utility is defined as the total amount of satisfaction received by an individual by consumping a…
Q: Research shows that the prices of related goods are given by Py = $6,500 and P₂ = $100, while the…
A: Given The demand function for good X: Qx=6000-12Px-PY+9Pz+110M ....(1) Here Qx=…
Q: The interest rate charged on a small loan is 1.5% per month. What are the corresponding 'nominal'…
A: Introduction The nominal interest rate refers to the rate of interest before accounting for…
Q: What is the difference between discretionary fiscal policy and automatic stabilizers? How are…
A: Introduction Economy is the organized system of production, distribution, and consumption of goods…
Q: Suppose a country's real GDP doubles in approximately 55 years. What was its constant annual growth…
A: The annual growth rate is a measure of the increase in a quantity (such as a country's GDP,…
Q: simultaneously set prices (as in the Bertrand model); and if some firm sets than other firms, then…
A: A market structure body by a solo seller, selling a unique product in the market. In a monopoly…
Q: Suppose that Shen, an excellent high school basketball player, is being recruited by Duke University…
A: Introduction Consumer surplus is the gap between what consumers are willing to spend and what they…
Q: Considering the equation 'AD = C+I+G+ NX,' an increase in personal income taxes will Select one: O…
A: We have know that agreegate demand formula given that AD=C+I+G+X-A That is we have show that tax…
Q: What is the largest health care program in the United States? A)DOD Tricare B) Medicaid C) Medicare…
A: A healthcare program is a comprehensive system designed to address the healthcare needs of…
Q: (1) Consider a small exchange economy with two consumers, A and B, and two commodities, ₁ and ₂.…
A:
Q: Suppose a perfectly competitive market with 5 firms in the market. Each firm has supply…
A: In perfectly competitive market, there are large number of firms, each selling identical good.
Q: What is the 2019 (i.e. percentage m 2018 to 2019)? approximate inflation rate increase in prices
A: The market basket consists of two goods, beef, and pork. Hence, there are 100 quantities of beef…
Q: (b) A university lab is a research contractor to MOSTI for in-space fuel cell systems that machines…
A: Given, Electric-powered Gas-Powered Solar-Powered First Cost -4500 -3500 -600 Annual Cost…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Please complete the table below and graph the TC, TVC, TFC, and TR output (Q) P TFC TVC TC TR Profit 0 10 80 0 80 0 10 10 80 100 180 100 20 10 80 200 30 10 80 130 40 10 80 215 50 10 80 150 230 60 10 80 170 250 70 10 80 275 80 10 80 220 90 10 80 260 100 10 80 390 110 10 80 400 480 120 10 80 580In the world market for copper, there are two types of copper mines: Type 1 (primarily locatedin North America) and Type 2 (primarily located in Asia and South America). Each type of mineincurs five “buckets” of costs: (1) direct materials; (2) energy inputs (such as electricity andnatural gas); (3) shipping; (4) production labor; and (5) production and administrative overhead.Direct materials, energy inputs, and shipping services are purchased in competitive spotmarkets, and the total monthly costs that a firm incurs on these items vary in direct linearproportion to the quantity of copper produced in the mine during that month. If a mineproduces no copper in a particular month, it incurs no direct materials, energy, or shippingcosts.By contrast, the total monthly costs for production labor and overhead are volume- insensitive:the levels of these costs do not vary with the volume of production in the mine. Even if themine temporarily suspended operations for a month (i.e., produced…Suppose that firms in an industry have identicalcost structures and the industry is in long-runequilibrium. Explain how the profit motive couldlead to lower market prices.
- 32.23 Millie Bush has written a best-seller. Revenues net of production costs are $3007¹/34¹/3 where T is the number of publicity trips Millie takes and A is the number of ads for the book that appear. Millie has to pay for all of her own publicity trips, which cost $100 each. Her publisher pays for the advertising, which costs $100 per ad. Revenues from the book are split equally between Millie and her publisher. Let T1 be the number of trips that Millie would choose to make in a Nash equilibrium where she chooses the number of trips and the publisher chooses the amount of advertising. Let T2 be the number of trips that Millie should make if trips and advertising are determined so as to maximize total profits net of trip and ad costs. (a) T1 = 1 and 72 = 1. (b) T1 = 1 and 72 = 2. (c) T1 = 2 amd T2 = 1. (d) T1 = 1 and T2 = 1/8. (e) T1 1/8 and T2 = 1.In which market structure does Johnson Electronics (Pty) Ltd operate? Provide areason for your answer and what level of output maximizes the firm’s profit? Provide the reason for youranswer output price total revenue average cost total cost margnial cost profit/ loss 10 10.00 100 20.80 208 0 -108 20 10.00 200 12.40 248 4.00 -48 30 10.00 300 9.90 297 5.00 3 40 10.00 400 9.00 360 6.20 40 50 10.00 500 8.80 440 8.00 60 60 10.00 600 9.00 540 10.00 60A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. Output 25,000 50,000 75,000 100,000 TC $85,000.00 105,000.00 110,000.00 115,000.00 ATC Instructions: In part a, round your answers to 2 decimal places. In parts cand d enter your answers as a whole number. a. What is ATC for each level of output listed in the table? Enter your answers in the table above. b. Suppose that for each 25,000-bottle-per-day Increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $120,000 and 150,000 bottles per day would generate total costs of $125,000). Are there economies of scale at all levels of output? (Click to select) c. Suppose that the price of a bottle of vitamins is $2.03. At that price, the…
- Complete the table below and graph the AR, MR, MC, and AC Q Price TR AR MR TC MC Profit 0 30 0 0 0 70 -70 5 27 135 27 27 135 0 10 24 240 24 21 197 43 15 21 315 21 15 252 63 20 18 360 18 9 300 60 25 15 375 15 3 345 30 30 12 360 12 -3 383 -23 35 9 315 9 -9 428 -113 40 6 240 6 -15 478 -238 45 3 135 3 -21 533 -398 50 0 0 0 -27 593 -593 Provide a brief explanation of the firm's behavior to set production at 20 units at the price of P18 per unit.Using the IRAC rule,please answer and discuss the question. John entered into a contract for the sale of his restaurant to Catherine. One of the terms of the contract was that Catherine would not open up a similar business within 20 miles of the location of the restaurant being sold. About a month after the sale John noticed a spanking new restaurants two blocks down the road from his recently purchased business. When he found out that the proprietor of the new restaurant was Catherine, he sued for breach of contract. Explain the likely outcome based on the laws governing legality.For each of the following pairs of firms, explainwhich firm would be more likely to engage inadvertising.a. a family-owned farm or a family-ownedrestaurantb. a manufacturer of forklifts or a manufacturer of carsc. a company that invented a very comfortable razoror a company that invented a less comfortable razor
- Discuss how the relationships between search costs and dynamic pricing in a company like e-bay impact on the value the company generates for sellers and buyers. Support your argument with relevant examples.1 Complete the Table Note: This table represents a firm's demand schedule and costs. TFC=3. P QD TRevenue TC ATC MC MR 10 1 7 6 5 4 5 6 987 6 10 5 2 3 4 5 6 2 Market Structure What market structure is definitely NOT represented by the table above? What are potential market structures with a firm having the data reflected in the table above? 3 Maximize Profit Using data from the table above, what is the: Profit maximizing quantity: Profit: $. 4 Multiple Choice If a good causes a negative externality, which market structure would likely cause the least amount of deadweight loss from the transaction of that good? a) perfect competition b) monopolistic competition c) oligopoly d) monopoly follow-up Why?b.) Cobb–Douglas. Assume the firm has a generalized Cobb–Douglas technology y=θ∙x1α∙x2β,where0<α,β & θisaparameter. 1. Give a possible interpretation of the parameter θ. Outline the conditions that must be imposed on the parameters to ensure a solution to the profit maximization problem exists. 2. Assume the requested conditions are satisfied and a unique profit maximizing solution exists. How does the optimal choice of output, y∗, vary with the parameter θ?