Provide an example of a company that has a monopoly (could be a local monopoly).

Q: 48. There are 5 firms with sales of firm1=$19.0million, firm2=$11.0million, firm3=$6.0 million, and…

A: There are 5 firms Firm1=$19.0million Firm2=$11.0million Firm3=$6.0 million The remaining two firms…

Q: Suppose that Samsung’s production costs are the same in both China and India. Also suppose that…

A: International trade refers to the exchange of goods, services, and capital across national borders.…

Q: The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar…

A: The two plants have different production functions. The total amount of steel available to the…

Q: a) State the condition for the Pareto optimal provision of a public good. Interpret the condition.…

A: Public goods are products or services that are non-excludable and non-rivalrous. Non-excludable…

Q: Suppose that the economy is made up of a single firm, which pays $300 in interest payments, pays…

A: The market value of final goods and services that a nation produces under its domestic territory…

Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: The local weather treatment facility, a price taker, is able to supply the first gallon of water for…

A: Market economics, frequently referred to as libertarian economics, is a type of economy wherein a…

Q: Consider an economy with real output of 400 and an average price level of $2. While velocity and the…

A: Real output (Y) = 400 Price level (P) = $2 Velocity (V) = 10 Yearly increase in real output = 1.25%…

Q: How much more (or less) output will the average American have next year of the $20 trillion GDP…

A: An important indicator of an economy's socioeconomic health, quality of life of its citizens,…

Q: Suppose the movie theater has two types of customers: college students and senior citizens. College…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A monopoly book publisher with a constant marginal cost (and average cost) of MC=2 sells a novel in…

A: Given:  Market 1 / demand function / p1 = 6 - 0.5q1  Market 2 / demand function / p2 = 9 - q2 MC = 2…

Q: Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the…

A: Money neutrality says that money is neutral in the long run.

Q: b) Consider agent A with (inverse) demand curve for the public good and agent B with inverse demand…

A: Public Good: Public goods are those goods which have non-rivalrous (if someone consumes that good,…

Q: Consider an economy with 3 agents, Mohammed (M), David (D) and Susan (S). There are two goods…

A: A Pareto-efficient allocation refers to the allocation where any individual can not be better off…

Q: Identify the effect of a business tax cut on aggregate supply using the model of the macroeconomy.…

A: The AD-AS framework, short for Aggregate Demand-Aggregate Supply framework, is an economic model…

Q: 1. Define the unique characteristics of the GDP gap.

A: GDP (Gross domestic product ) refers to the monetary value of all final goods and service that is…

Q: Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa…

A: Economic policymaking can become difficult since it includes dealing with a complex combination of…

Q: Consider the production of hotdogs, where ATC is the average total cost and AFC is the average fixed…

A: Total costs refers to the total amount of cost of production required in producing a certain amount…

Q: Q6. If E-10 units of emissions, the total cost of abatement is AC-4a², and the total damage function…

A: The total abatement cost refers to the cost a firm incurs in order to reduce its pollution…

Q: Suppose a $1,000 bond pays $30 per year in interest. a. What is the contractual interest rate…

A: Bonds are generally used by the government to raise money from the market when are in need of money.…

Q: (a) What is the main economic argument against the 1998 Copyright Term Extension Act (which extended…

A: Copyright is a legal concept that grants the creator of an original work exclusive rights to control…

Q: A company estimates that the weekly sales q of its product is related to the product's price p by…

A: Given the function of company sales, q and product price p is q=11900p103. We have to find the…

Q: Demand curve is a curve where income and expenses intersect Question 7 options: True False

A: Demand curve and supply curve are the two invisible hands of a marketplace which helps to determine…

Q: Siobhan divides her spending between lemons and limes. If the price of lemons falls, the income…

A: The income effect predicts that if the price of lemons falls, Siobhan's purchasing power increases,…

Q: Between 2008 and 2010, TOTAL EMPLOYMENT in the United States Declined by approximately 5.1 percent.…

A: According to the sectoral shifts theory, changes in the demand for products and services can affect…

Q: State the arguments in support if free trade and discuss the degree of economic integration

A: Free trade refers to the policy of permitting goods and services to move freely across national…

Q: The Greek letter a represents a number that determines how much output responds to unexpected…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: (a) Write the payoff matrix and explain whether there are any pure Nash equilibria. Carefully…

A: According to the concept of a Nash equilibrium in game theory, no one has the incentive to alter…

Q: Exercise 6.4. Suppose there are only two companies (1 and 2) that fix flat tyres in the local…

A: The Duopoly model is a type of oligopoly model where there are two sellers and numerous buyers in…

Q: (b) What are the most noticeable changes in Vietnam’s export pattern between 2000 and 2020? c)…

A: ***Since the student has mentioned to answer only part B and C of the question, only the specified…

Q: discuss the economics of a fishery managed as a ‘common pool’ resource and contrast it to the case…

A: A common pool is a method in which the natural resource is control by government or a group of…

Q: If members of the population The expected cost of healthcare is $ to pay the expected cost of…

A: ​If Jermaine prefers the 50-50 chance of $500 or $1,500 to receiving $1,000 with certainty, this…

Q: 4.1 Have a look at the following diagram and answer questions 4.1 (i) and 4.1 (ii) that follow:…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: Three GenCos and three LSEs (load serving entities) participate in a centralized electricity market.…

A: Multiple generators offer to sell power at various rates in a centralized electricity market, while…

Q: Can you create a graph showing perfect competition for grocery stores in a rural area ? And explain…

A: Perfect competition is when there are many number of buyers and sellers with no barriers to entry.…

Q: Which of the following statements is true? Select one: O All sustainable allocations are efficient.…

A: The efficiency and ethical considerations are helpful on the desirability of social and private…

Q: Carol is applying for a mortgage She has a monthly gross income of $4800. The home she would like to…

A: The front-end ratio is a ratio that shows how much of a person's income goes towards paying their…

Q: Jim and Cheryl are competitors in a small town and each is trying to decide if it is worthwhile to…

A: A state in a game in which each player in a game is making the best decision they can, given the…

Q: Money held for emergencies represents the: A. Crisis demand for money. B. Disaster…

A: The transactions demand for holding money occurs when the money is hold by people to transact…

Q: 8. a) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm…

A: Cost function of firm A  CA(q,x) = q2 + (x - 4)2 PA = 12   Cost function of firm B CB(r,x) = r2 + xr…

Q: Choose a commodity (a good or a service) that you are familiar with and discuss how and when demand…

A: Demand and supply of a good depends upon various factors such as: demand side: Price, income, taste,…

Q: Consider the imaginary small country of Auyuittuq. Assume that Auyuittuq is closed to trade, so that…

A: A country that is closed to trade, has no engagement with any other country with regard to economic…

Q: You are considering a purchase of UnderDog Inc.’s stock, currently available on the NYSE for $105 a…

A: The Gordon Growth Model, also known as the Dividend Discount Model, is a method of valuing the stock…

Q: Explain why the percentage of all money paid to hospitals “out of pocket” is much smaller than the…

A: The given question is following: - We have to explain why the percentage of all money paid to…

Q: a) Consider an economy with 3 agents, Mohammed (M), David (D) and Susan (S). There are two goods…

A: Marginal rate of substitution is the amount of one good that a consumer is willing to enjoy in…

Q: Arif and Aisha agree to meet for a date at a local dance club next week. In their enthusiasm, they…

A: Sequential equilibrium is a concept in game theory that aims to capture the idea of a consistent…

Q: 9. Behavioral economics Indicate whether each of the following examples of behavior is consistent…

A: At the end of the 1970s and the beginning of the 1980s economists including Amos Tversky and Daniel…

Q: $40 O O $55 $60 O $120 $20

A: A deadweight loss, also known as an excess burden, refers to the loss of economic efficiency that…

Q: Policymakers debate the extent to which the U.S. government should be involved in the healthcare…

A: Health economics is the study of the production, distribution, use, and supply of healthcare. In the…

Q: Start with AS/AD and IS/MP in full employment equilibrium. Assume the is a massive positive…

A: IS-LM or IS-MP model is  macroeconomic model that explains the relationship between interest rates,…