Suppose you observe that a particular business has earned positive profits over time and maintained a large share of the market. Which of the following is likely to be true?  Group of answer choices Demand for the product is probably elastic The business must be engaging in price discrimination There is probably a barrier to entry preventing new firms from competing Supply must be inelastic Government intervention in this market is probably limited

Q: If the price of a good is initially below the equilibrium level         excess demand exists.…

A: Equilibrium price: At this supply of goods matches the demand.

Q: A car rental agency lowers their rates by 10 percent. If the agency wants to recoup the income lost…

A: If the demand for cars is elastic then, the percentage change in quantity demanded is more than the…

Q: Is the following statement true or false? An increase in both demand and supply of a product will…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: Market failure refers to a situation when  a. Social efficiency is not achieved  b. Perfectly…

A: The economic condition described by the inefficient distribution of products and services in the…

Q: Which external sources of recruitment are commonly used by the big enterprises that you believe are…

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Q: Firms most often reduce the prices of the goods they sell during periods of expansion. True False

A: Expansion refers to a rise in manufacturing and employment, due to which there is an increase in the…

Q: A large number of firms are capable of producing chocolate-covered cockroaches. The linear,…

A: Demand is desired backed by ability and willingness to pay for the commodity the given price during…

Q: An increase in the number of firms wanting to provide accounting services causes a _____ for…

A: shifting of demand and supply curve depends upon many factors , if supplier factors increases or…

Q: Rent controls force landlords to price apartments below the equilibrium price level. An immediate…

A: Price ceiling refers to fixing the price below the market equilibrium price. No seller can charge…

Q: If the government could charge different entry or user fees at different national parks to raise…

A: Price elasticity of demand refers to the responsiveness of the quantity demanded to a change in the…

Q: Where there is asymmetric information between buyers and sellers:        product shortages will…

A: Asymmetric information refers to incomplete or missing information. This occurs either on the…

Q: Market power results in more restricted output and higher price than would prevail in a perfectly…

A: The market power is known as the control over the market prices, the firms with significant market…

Q: Identify the NonPrice determinants of supply in the dentistry field business. (per factor) In cost…

A: Non-price supply variables include input costs, technology, tax rates, prices of related goods, and…

Q: Match! (Answers may be used once, multiple times or not at all.) Group of answer choices When price…

A: As we answer only 3 subparts and the question has more than three subparts, we would be answering…

Q: An improvement in production technology will:   Multiple Choice   increase equilibrium price.…

A: The supply curve very reactive with the factors of production, the greater cost of factors of…

Q: Suppose a firm's patent expires. In this case, the market price of the good/service will _____ and…

A: As shown in the diagram ATC is the average total cost and MC is the marginal cost. The point at…

Q: A firm supply curve is upsloping because:         the expansion of production necessitates the use…

A: A firm enters the market and supplies specific products or services to make a profit from selling…

Q: Supply Demand QUANTITY the cost of a unit to a seller. For an output level above QE, the value of a…

A: In the above diagram, the market is said to be in equilibrium at point A where the demand curve…

Q: A) supply is inelastic and demand is elastic. B) supply is elastic and demand is elastic. C) supply…

A: Question 7 The answer is - D) Cannot arise on a market with perfect competition

Q: SUPPLY AND DEMAND PROBLEM (Complete answer with solution) 1. Assume that the demand function is…

A: The different levels of quantity of a good that consumers are willing and able to buy at different…

Q: If the pandemic causes firms in a competitive industry to spend $100,000 per month on safety…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: PF), where nc is the number of patients per day who are at least 40 years old, and pf is the price…

A: Demand for medical checkups : Qf = 25(198 + nc/20,000 -pf ) Supply of medical checkups : Qf = 50pf -…

Q: Rent controls force landlords to price apartments below the equilibrium price level. An immediate…

A: Price floor and price ceiling are the 2 methods that are used by the government to regulate the…

Q: Average price per person (R) 30 01 Occupancy rate (%) EXERCISE 9 South Africa has commonly been…

A: A demand shock is a sudden increase or decrease in the demand for a good due to an unexpected event.…

Q: Price floors will tend to have both winners and losers. Discuss the implications of       an…

A: At the labor market, employers make demand for labor and employees are the suppliers of labor. They…

Q: For the following four questions, determine what happens to supply or demand of product X,…

A: Demand and supply are the two forces which run the market. Consumer in the market comes with the…

Q: Economies of scope refers to the idea that economic value created increases with the amount of the…

A: There are two different economic concepts, economies of scale and economies of scope.

Q: A large number of firms are capable of producing chocolate-covered cockroaches. The linear, upward…

A: The linear, upward sloping supply curve starts on the price axis(y-axis) at $6 per box and is…

Q: f the firm is producing at a quantity where marginal revenue exceeds marginal cost then, in order to…

A: The monetary value of production is that the distinction in total production prices that results…

Q: In a competitive market, the actions of any single buyer or seller will adversely affect the…

A: Competitive market: Competitive market is the market structure where there exist a large number of…

Q: Supply Demand QUANTITY For an output level exactly at QE, the value of a unit to a buyer is the cost…

A: Given:-

Q: Which of the following statements is correct? A) The law of demand is only relevant for perfectly…

A: In a market, changes in market condition will influence the buying and selling decision of buyers…

Q: A group of people that were insured last year paid $20 out of pocket for a primary care visit but…

A: Price elasticity of demand refers to the responsiveness of the quantity demand due to change in the…

Q: At the competitive equilibrium quantity supplied equals quantity demanded in all markets. Equity…

A: For the given question, it need to be identified whether the given statements are true or false.

Q: A company faces a recession. It has several strategic options to choose from. The company is willing…

A: Introduction During recession best strategic option for a company is partially cut the prices and…

Q: Which of the following best describes joint demand, otherwise known as shared demand? A) More than…

A: Joined refers to the demand for two goods which are interdependent. The cross-elasticity of demand…

Q: A change from E 1 to E 2 is most likely to result from:      A decrease in consumer incomes     An…

A: Changes in factors affecting demand other than price shifts the demand curve while changes…

Q: Market power leads to markets that do NOT have socially optimal results. The _____ is higher and the…

A: Socially optimal results reflect the total costs and benefits of production or consumption,…

Q: All the following are positively related to supply, except______. a. More Subsidy b. Better…

A: Law of supply states that there exists positive relationship between price of a given good and…

Q: Iowa farmers can choose from five different manufacturers of farm implement equipment. Two of these…

A: Duopoly is a special type of oligopoly in which there are two firms in the market or the two firms…

Q: Assuming the Petroleum Company of Barbados did not issue a directive for an increase in supply and a…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: Question attahed in image

A: Flexible inputs refer to the process of production that can be easily substituted by and for other…

Q: The government decides to pass a law that requires all automobiles to have side and rear airbags.…

A: The demand for automobiles is highly inelastic as compared to the supply of automobiles. An increase…

Q: The factors of production  (please choose all the answers that are correct)     include the…

A: The factors of production can be defined as the inputs that are used to produce the output.

Q: Suppose the local economy experiences an influx of both skilled and unskilled workers, what will…

A: Figuring out the marginal product of labour (MPL) is fundamental for advancing the labour force and…

Q: If firm sales (revenue) is increasing but costs are increasing faster (MR<MC) then: Answer: "Y" for…

A: Hi, thanks for the question. Since there are multiple questions posted, we will answer first three.…

Q: Please select the correct options in the below five questions: Question number one: Given.. a..…

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