Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Answer the question on the basis of the following demand and cost data for a specific firm.Demand Data(1) Price (2) Price$70$3565306025552050151054540(3)Quantity2345678Multiple Choicedecrease by $15.Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1and 3 to columns 2 and 3. Maximum economic profit willdecrease by $150.decrease by $45.Cost Datadecrease to zero.TotalOutput2345678Total Cost$45557090115145180

Total revenue is the total receipts from selling the goods. It is computed as price times quantity.…

Answered: Suppose that entry of firms into the…

Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

See similar textbooks

Related questions

Q: 3. Assume a city of 1,000,000 people, 60% of whom are willing to pay $1 maximum (each) to clean up…

A: Pareto Criterion:It states that an action or situation is desirable if it makes at least one person…

Q: The following graph shows the total expenditure line (TE) for an economy where current equilibrium…

A: Real GDP denotes the overall output of the economy following the change in the price. The rate of…

Q: Suppose your classmate Cho offers you a wager: She will choose a playing card at random from a deck…

A: Risk aversion shows the characteristic of a person which represents his preference regarding a…

Q: If people suddenly wish to hold more money at each interest rate : a. the money demand curce will…

A: The LM curve represents the set of equilibrium points in the money market. The term "LM" stands for…

Q: Boeing is the sole supplier of aircrafts to all Asian airlines. Airbus is deciding whether to enter…

A: Aggressive strategy is considered as one where the risk of losing is high but consequently, the…

Q: The basic Solow growth model was initially used to help governments of very low income nations…

A: This can be defined as a concept that shows the continuous progress in any nation it does not happen…

Q: As you can see from the article in the prior problem, "Rents Hit All-Time Highs amid Job Growth and…

A: Average increase in earnings in LA and Orange counties: 10%Average increase in rent in LA and Orange…

Q: 1. Key concepts and terms Select the correct type of economist for each of the following views. View…

A: Economics is defined as the scarce resources in an economy through the production, distribution, and…

Q: A budget constraint model differs from production possibilities model in that, typically O only the…

A: The production possibility curve shows the best combination of two goods that can be produced with…

Q: Explain whether each of the following statements is positive or normative: i.Embargoes and quotas…

A: Normative statements are value or judgement based. These are opinions and cannot be factually…

Q: QUESTION 1 Given a demand curve of P = 1200 - 40Qd and supply of P = 200 + 10Qs and a binding price…

A: Dead weight loss: It is defined as the loss of total welfare (or the total surplus = consumer…

Q: When looking at Say's law, which of the following is true? The focus is on the short run. O Every…

A: According to Say's Law the supply generates its own demand. In the production process, sufficient…

Q: Refer to Figure 14-2. When price falls from P3 to P₁, the firm finds that fixed cost is higher at a…

A: A perfectly competitive firm can earn short run profit and losses. This decision leads to further…

Q: Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying…

A: The optimal strategy refers to the course of action that maximizes the outcomes or payoffs.

Q: In 2007 there was a dramatic decline in housing prices. This caused people to feel worried about the…

A: Central banks regularly monitor corporate expectations when making monetary policy decisions in…

Q: Discuss the impact of expansionary and contractionary monetary policy, specifically the change in…

A: Monetary policy is a macroeconomic device utilized by a country's central bank or monetary position…

Q: Warm-glow: now consider the case where each individual cares only about their direct marginal…

A: Marginal Benefit:Warm-glow Marginal Benefit:Marginal…

Q: The graph shows the demand and supply curves for sandwiches. If the sandwich market is efficient,…

A: The equilibrium occurs at the intersection of demand and supply curves. In the given graph it occurs…

Q: The monetary policy options that can prevent a decrease in the risk premium on risky bonds from…

A: This can be described as a concept that works as a tool of the government To make sure that the…

Q: If the inverse demand curve is p=100-Q and the marginal cost is constant at $10, how does charging…

A: The Profit is maximized where the Marginal Revenue is equal to the Marginal cost of…

Q: Ernest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for…

A: Price Elasticity of Demand: A measure of how sensitive the quantity demanded of a good is to changes…

Q: In the short run, contractionary unemployment, and O lowers; lowers; raises O raises; lowers; lowers…

A: The Federal Reserve employs contractionary monetary policy to slow the economy. This is achieved…

Q: f oil can be purchased in country A at a lower price than in country B, then citizens of country B…

A: The price of oil is lower in country A than in country B. Citizens of country B will purchase oil…

Q: If firms producing the profit maximizing level of output experience total revenue less than total…

A: If firms producing the profit maximizing level of output it is the situation where firms should make…

Q: QUESTION 10 PRODUCT product X product Y product Z Ob) 153 Oc) 1.2 O d) 150 O e) 200 QUESTION 11 (b)…

A: Consumer Price Index or CPI measures the changes that occur in the prices of goods or services. It…

Q: You are working for a Investing in countries wi long-term strategic goals attractiveness of…

A: To measure country attractiveness for foreign direct investment (FDI), I would consider a variety of…

Q: The table below shows the market for AA batteries in Tulsa, Oklahoma, when tornadoes threaten the…

A: Deadweight loss is a cost to society created by market inefficiency when supply and demand are not…

Q: Consider the scenario. Explain using written and graphical analysis 2. What will happen in the…

A: Market dynamics are defined as the continually shifting interaction between supply and demand,…

Q: The Mexican peso crisis was significant in that it was perhaps the first serious international…

A: When the Country M government depreciated the peso in December 1994, a financial crisis known as the…

Q: that has assets of $90, short-term credit of $70, and capital of $20. Short-term credit must be…

A: Assets are considered something that the bank actually owns.Liabilities is something that the bank…

Q: If Sport Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an…

A: Opportunity cost is the value of the next best alternative that you give up when making a decision…

Q: As shown in the diagram to the right, the short-run aggregate supply curve (AS) is upward-sloping.…

A: The Short Run Aggregate Supply (SRAS) curve shows the relationship between the price level and the…

Q: Question 1 What part of the strategic plan provides managers with an estimate of future revenue to…

A: This can be described as a concept that shows the capacity of the purchaser to purchase the products…

Q: What is the value of Consumer A's marginal rate of substitution (MRS) of concert tickets for popcorn…

A: The utility is the total satisfaction that the consumer derives from the consumption of the…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Ike's Bikes is a bicycle manufacturer. Currently it produces bikes using only one factory. But it…

Q: An advertisement in the local paper offers a "fully loaded" car that is only six months old and has…

A: Adverse selection refers to a situation where one party in a transaction has more information than…

Q: The factors that would shift the demand curve for reserves include A. the federal funds rate. B. an…

A: Central banks continually monitor business expectations while making monetary policy decisions in…

Q: GDP excludes all of the following, except. 000 the value of leisure. the value of housework. damage…

A: Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and…

Q: Nabil is considering buying a house while he is at university. The house costs 125,000 dollars…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: What is measured along the vertical axis on the graph? a. the wage paid to automobile workers b.…

A: The optimal level of wages at which a certain number of laborers will be employed is analyzed in the…

Q: 6) Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to: Price 10 8…

A: Price ceiling is the government imposed maximum price set for a product. It is effective when it is…

Q: QUESTION 48 Figure 3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two…

A: Philips curve refers to the curve that shows the relationship between the inflation rate and…

Q: In response to lobbying by the skate board association, the government places a price ceiling at the…

A: The link between the amount of a product provided and its price, while maintaining other variables…

Q: Calculate the following using information from the table below: i. GDP at Market Price ii. GNI at…

A: National Income: The entire monetary worth of all finished products and services produced inside a…

Q: A production function defines the output that can be produced A. as technology changes over time.…

A: Production function defines the relation between input and output , or we can say that it represent…

Q: If X and Y are substitutes, and if the marginal cost of producing X increases, which of the…

A: Marginal Cost:Marginal cost is the additional cost incurred by producing one more unit of a good or…

Q: Pizza 8 0 Pizza $1.25 0 5 (A) (C) $2.00 O graph A O graph D O graph B O graph C Beer Beer Pizza 5 0…

A: The opportunity cost is an alternative cost that is forgone by choosing other goods. It is an…

Q: Figure 26-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds…

A: Loanable funds is defined as the theory for determining rate of interest in the market. The demand…

Q: • Recalibration of sensitive measuring devices costs $8000 per year. If the machine will be…

A: To calculate the 8-year equivalent uniform series at 16% per year for the recalibration cost of…

Q: The theory that suggested countries would mutually benefit from trade by specializing in export…

A: Two countries engage in trade to improve their productivity. The countries that specialize in the…

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Answer the question on the basis of the following demand and cost data for a specific firm.
Demand Data
(1) Price (2) Price
$70
$35
65
30
60
25
55
20
50
15
10
5
45
40
(3)
Quantity
2
3
4
5
6
7
8
Multiple Choice
decrease by $15.
Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1
and 3 to columns 2 and 3. Maximum economic profit will
decrease by $150.
decrease by $45.
Cost Data
decrease to zero.
Total
Output
2
3
4
5
6
7
8
Total Cost
$45
55
70
90
115
145
180

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define total revenue and profit.

VIEW

Step 2: Explain the answer:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A publisher has the following table of demand for the next novel by one of its famous authors: Price Number of novel in demand 100 0 90 1 80 2 70 3 60 4 50 5 40 6 30 7 20 8 10 9 0 10 The author is paid $2 to write the book (Fixed Cost or FC) and the marginal cost (MC) of publishing it is a constant $10 per book. a) Calculate the total revenue, total cost, and corresponding profits for each quantity. What quantity would a profit-maximizing publisher choose? What price would he set? b) Calculate marginal revenue. How does marginal revenue compare to price? Explain. c) Plot the marginal revenue (MR), marginal cost (MC), and demand (D) curves. At what quantity do the marginal revenue and marginal cost curves intersect? What does this mean? d) Obtain the economic profits (EP) of this monopolist and graph.
Refer to Figure 1. If the market price is $2, what the firm will do? Enable Editing 4) Use the figure below to answer the following questions. Price and cost (dollars per unit) 80 MC 60 40 ATC 20 MR 20 40 60 80 100 Quantity (units per week) Figure 2 a) Refer to Figure 2 If this firm is in monopolistic competition, what is its output? b) Refer to Figure 2 If this firm is in monopolistic competition, what is the price it will charge? c) Refer to Figure 2. What is the firm profit situation? What time frame equilibrium is the firm? d) Refer to Figure 2. If this firm in monopolistic competition is in short-run equilibrium, and the firm making profit what will happen in the long run to the firm profit? explain
PRICE (Dollars per cupcake) 4.00 3.50 1.00 2.50 2.00 1.50 1.00 0.50 0 MC D ATC MR Demand 0.5 1.0 1.5 20 25 30 35 40 QUANTITY (Thousands of cupcakes) At the profit-maximizing output and price, the shop's profit is equal to Given the profit-maximizing choice of output and price, there are Profit Maximizing Outcome Profit Loss 2 (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.
Complete the following table showing the demand for snow skiing lessons per day. Do this by filling in the values for (i), (ii), and (ii). Average Revenue (AR = TR/Q) Marginal Revenue (MR = ATRIAQ) Lessons Total Revenue (TR =PxQ) Price (P) $70 per Day (Q) $65 55 45 1 65 65 60 55 50 45 $65 2 3 120 60 (i) 200 225 55 4 50 35 5 (ii) 40 25 6. 40 240 15 7 35 245 35 5 8 30 240 30 (ii) (i) Total revenue for 3 lessons is $ (ii) Average revenue for 5 lessons is S (iii) Marginal revenue for the 8th lesson is $
23 cements nents sions us es les eButton millan Learning borations m gle Drive rse Materials Answer the questions based on the following graph that shows the cost and revenue curves of a monopolistically competitive firm operating in the Toy Bear industry. 10 9 8 7 6 S 5 4 3 2 1 0 0 1 2 3 A MR 4 5 Quantity 6 7 MC ATC Demand 8 9 10 (a) Is the firm whose cost and revenue curves shown above in short-run equilibrium? Explain. (b) Using the labeling from the graph, identify each of the following at the profit-maximizing output. (i) The average total cost (ii) The output produced (c) Using the labeling from the graph, identify each of the following if this were a profit- maximizing perfectly competitive firm. (i) The average total cost Time Attem 59 M
You are an owner of a local Toyota dealership. Your dealership earned record profits of 13 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for Toyota cars is -1.5. The marginal cost of a car is 120000. What price should you charge for a Toyota car if you expect to maintain your profits?
Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. The table to the right shows the firm's demand and cost schedules. What is likely to happen to the product's price in the long run? OA. It will increase. OB. It will remain constant OC. It will fall. OD. Cannot be determined without information on its long run demand curve. to select your answer. Quantity Price Total Revenue (Dollars) (Cases) (Dollars) $75 $75 70 140 65 195 240 275 1 2 3 4 6678 a 60 55 50 45 40 35 300 315 320 315 Total Cost (Dollars) $60 85 105 115 130 155 190 230 280
Kali is a dot-com entrepreneur who has established a Web site at which people can design and buy aring. Kali pays $600 a month for a Web server and Internet connection. The rings that customers design are made to order by another firm, and Kali pays this firm $20 a ring. Kali has no other costs. The table shows the demand schedule for Kali's rings. What is Kali's profit-maximizing output, price, and economic profit? Price (dollars per ring) 100 Quantity (rings per month) 0 80 20 60 40 40 60 20 80 0 100 Kali's profit-maximizing output is rings a month. Kali's profit-maximizing price is $ a ring. Kali's economic profit is $ a month.
Price and cost (dollars) 50 40 30 20 ATC 10 MC MR 10 20 30 40 50 Quantity (thousands of households) The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC operated under an average cost pricing rule, how many households in Oakland are served? 20,000 30,000 10,000 40,000
MIcro: The company “Mike Broonie” operates in the market of monopolistic competition. Just now, the company weekly produces and sells 100 units of pillows for £12 each. The average total cost to produce the pillows doesn’t depend on the output, being £10 per unit. Having evaluated the price elasticity of demand for its product, the company concluded that demand is inelastic at the moment. a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”. b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated forecast. To increase the number of points…
Kyrie owns a company in a competitive market that generates $800 in total revenue and has a marginal revenue of $20. If Kyrie is maximizing profit what quantity of goods are being sold and at what price? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 20 units are being sold at a price of $40. b 20 units are being sold at a price of $20. 40 units are being sold at a price of $80. d. 40 units are being sold at a price of $20. e 80 units are being sold at a price of $20. f 80 units are being sold at a price of $40.
Kyrie owns a company in a competitive market that generates $800 in total revenue and has a marginal revenue of $20. If Kyrie is maximizing profit what quantity of goods are being sold and at what price? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 20 units are being sold at a price of $40. b 20 units are being sold at a price of $20. 40 units are being sold at a price of $80. d 40 units are being sold at a price of $20. 80 units are being sold at a price of $20. e 80 units are being sold at a price of $40.