Use the diagram below to determine the price and quantity for a. a perfectly competitive, profit-maximizing industry? b. a profit-maximizing monopoly?
Q: 2. A sports complex is to be constructed. Two plans are under consideration. Plan I is to construct…
A: A sports complex is to be constructed. Two plans are under consideration. While planning our focus…
Q: Ayesha, a baker of apple pies, can make a pie from one pound of apples and one hour of paid labor.…
A: Given information: An apple pie can make from one pound of apples and one hour of paid labor. The…
Q: 1. Rank the following markets from that where price controls would cause the greatest disequilibrium…
A: Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a…
Q: T5
A: The goods and services are classified under two main categories which are the private goods and…
Q: Explain to your elderly relative, who is wondering what is the global marketplace that they keep…
A: Market: It refers to a place where goods and services are sold. The people go and can buy anything…
Q: Transaction One: Open a Bank and Accept Deposits Name your Bank Draw a T-Account Representing…
A: Assets: It refers to valuable things. Assets help in increasing the wealth of a person. It can be…
Q: uantity of Total roduct A Utility 1 2 3 4 5 6 7 16 30 42 52 60 66 70 Marginal Utility 16 14 12 10 8…
A: A consumer will maximise utility at a point where marginal utility per dollar of good A is equal to…
Q: How large a tax cut would be needed to achieve the same increase in aggregate demand? $ 13 bilion b.…
A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…
Q: The following set of equations describe an economy: C = 14,400 + 0.5 (Y − T) − 40,000r Ip =…
A: Central bank uses many policies for regulating the economy for reducing the inflation and recession…
Q: True, False, or Uncertain? Give rationale to your answers. Provide graphs. Capital in all sectors…
A: A Tax is forced on the capital in the manufacturing sector, the capital in every one of the sectors…
Q: Economics In year 1 the CPI is 181, and in year 2 the CPI is 195. If Dennis's salary was…
A: inflation is typically a broad measure, such as the overall increase in prices or the increase in…
Q: Use the following data to analyze the condition when the product price is set at $56. A. How much…
A: The profit-maximizing output is achieved in purely competetive market is when:P=MCNow, P=$56We will…
Q: What is the short run supply curve of a perfect competitive firm. Expalin using illustrations
A:
Q: If the demand toward a specific product hardly changes with a small change in price, the demand is…
A: Demand is a monetary guideline alluding to a consumer's desire to purchase goods and services and…
Q: A consulting engineering firm is considering two models of SUVs for the company principals. A GM…
A: Summary of given information: GM Model Ford model First cost (FC) $36,000 $32000 Operating…
Q: Suppose there is a hurricane that causes oil rigs and refineries in and around the Gulf of Mexico to…
A: Whenever there is a decline in the supply, it is termed a negative supply shock and whenever there…
Q: An oligopolistic market structure is distinguished by several characteristics, one of which is…
A: In economics, an oligopoly refers to a market structure made up of many large corporations that…
Q: What are the objects and methods of exchange control?
A:
Q: In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm…
A:
Q: • Describe the circular flow of income and spending in the economy. Explain how the following…
A: Since you have asked a multi-part question, and according to the policy we can only solve the first…
Q: How does fixed cost affect marginal cost? Do fixed costs affect perfectly competitive firm’s output…
A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…
Q: QUESTION 57 In general, horizontal mergers will O increase the number of firms in an industry. O…
A: The horizontal merger occurs in the same industry where the similar products are produced.…
Q: In the long run... Multiple Choice all inputs are fixed. None of these options are correct. the…
A: Long run in economics is a time period where firm can adjust all the costs whereas they can only…
Q: The profit maximization condition is where he profit maximization quantity of output is at he profit…
A: The monopoly firm maximizes profit where the MR=MC. Monopoly firm has market power. Thus, it is…
Q: A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy…
A: Equilibrium exists when the quantity of a good demanded is just equal to the quantity of the good…
Q: Assume the following: Current Actual Inflation Rate = 2% Potential Real GDP = 100,000 Actual Real…
A: INTRODUCTION: TAYLOR RULE: The Taylor rule, additionally referred to as Taylor's precept or the…
Q: The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa Bay market for…
A: We are going to solve this Normal form game to answer this question.
Q: 13.2 Practice Problem 1 (algo) The Bank of Canada buys a 35000 bond from a member of the public when…
A: Cash Reserve Ratio, is the proportion of deposits that business banks are expected to keep as money…
Q: G5
A: Meaning of Trade: We know that The term trade refers to the situation under which the products and…
Q: Explain two ways in which a consumer could be described as vulnerable. What factors might make a…
A: ▪︎One way a customer could be depicted as defenseless is that they might have a previous situation…
Q: 8. If both nominal GDP and the price index are rising, is evident that a) real GP is constant. b)…
A: Nominal GDP is defined as the monetary value of all goods and services produced within the…
Q: Merry Industries is considering a new piece of equipment for a project lasting 10 year with details…
A: The annual worth method or AW method implies that all the incomes along with disbursements, regular…
Q: medical complexes and their service providers continue to move toward advanced health informatics -…
A: Given, Cost = 270000 Salvage value = 10000 Useful life = 6 Depreciation calculated as Double…
Q: Is ‘zero unemployment’ desirable? Explain Define the three ranges of the aggregate supply curve in…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider two countries, home and foreign and a single good, Y. Assume that home country imports good…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The net balance of payments is Multiple Choice O O O the sum of the current account balance and the…
A: Balance of payment is the records of transaction with other countries. it consists two account…
Q: Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard…
A: In the study of game theory, extensive form games is defined as the way of describing any game with…
Q: 8 1. In what sense is education a type of capital? 2. What conditions lead to highly…
A: Note: You have uploaded multiple and unrelated questions. Hence, we shall answer only the first one…
Q: What is multiple tax system? Write its merits and demerits
A: Taxes are defined as compulsory charges levied by the government on teh citizens. These taxes…
Q: "ou are provided with the following information about an economy: Government spending, G = $ 50…
A: Equilibrium national income can be determined by equating the aggregate demand with aggregate income…
Q: QUESTION 2 P 20 16 12 8 4 D 0 Q 0 4 8 12 16 20 24 ---------- ....... 02. Between price = 10 and…
A: We need to find elasticity of demand to answer this question.
Q: Suppose that there are two types of entrepreneur: skilled and unskilled. Skilled entrepreneurs have…
A:
Q: Consider a competitive market where the intersection of the demand and supply curves determine the…
A: In this case, competitive market are taken to be consideration. Actually here supply and demand…
Q: Assume you have your car broken down just before the weekend. You value your weekend trip as much as…
A: Symmetric game is defined as a game where the pay-offs of a player depends on the strategies that…
Q: R4
A: Capital Deepening is defined as an increase in the proportion of the stock in capital to the number…
Q: Discuss the socially optimal quantity of a public good? Explain using a diagram.
A: The public goods are non-rivalrous (if one consumes then it doesn't decrease its availability to…
Q: A risk-neutral firm produces chemical products, and its objective is to maximize expected profit.…
A: Given information When firm invest low amount for safety Cost=$0 Probability of accident= 80%…
Q: 56
A: We know that Fed is the central bank of America. It is responsible for controlling inflation and…
Q: The figure below depicts the supply (S) and demand (D) for labor in a perfectly competition market,…
A: Equilibrium in the labor market occurs at the intersection of demand and supply curves of labor.
Q: The figure below depicts the supply (S) and demand (D) for labor in a perfectly competition market,…
A: Introduction We have given demand and supply of labor in perfectly competitive market. It has shown…
Use the diagram below to determine the price and quantity for
a. a
b. a profit-maximizing
Step by step
Solved in 2 steps
- Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60Why will profits for films in a perfectly competitive industry tend to vanish in the long run?Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
- Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural MonoployIs a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
- A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?
- Suppose that the market for polos is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Esc 50 PRICE (Dollars per polo) 78°F Sunny 45 40 F1 35 30 25 20 15 10 5 0 + 0 + 2 F2 MC -0- + 4 ATC AVC 6 8 10 12 14 QUANTITY (Thousands of polos) F3 0+ F4 69 16 18 F5 20 a F6 i I F7 4- F8 Q+ H F9 F10 FO F11 F12 Fn Lock Ins100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)Many small boats are made of fiberglass and a resinderived from crude oil. Suppose that the price of oilrises.a. Using diagrams, show what happens to the costcurves of an individual boat-making firm and tothe market supply curve.b. What happens to the profits of boat makers in theshort run? What happens to the number of boatmakers in the long run?