5. Given that excess demands are continuous and satisfy Walras' law, use Brouwer's Fixed Point Theorem to establish the existence of competitive equilibrium in a simple exchange economy. Suppose that an apple orchard is located next to a bee keeper. If the orchard produces x apples and the bee keeper produces y honey and the cost functions of the two are as follows: C(x) = x² + 10x +9 C(y) = y² - 8x What will be the socially optimal amount of apples that can be produced? How does this compare to privately optimal amount?
Q: What does Microeconomics primarily examine? Question 3 options: the behaviour of households but…
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Q: True / False questions with EXPLAINATION 1) In AD-AS model , if the government reduces tax on…
A: AD- AS Model is a long /medium run model which systematically explains the movements to equilibrium…
Q: Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project.…
A: A payoff demand statement represents a written statement, designed in reply to a written demand…
Q: part B a. i. What is the equilibrium price of protective masks before trade? ii. What is the…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: KEY CONCEPTS The Aggregate demand and supply model provides a framework for our study of the opera-…
A: The demand and supply of all products and services generated by an economy are the subject of…
Q: Multiple choice question and give a short explanation about your answer: Which of the following is…
A: When talking about consumption behavior, it can be said that an individual make consumption using…
Q: how do we make the best use of the available resources
A: Scarcity: - it is a very basic problem of economics that is related to the limited availability of…
Q: n Country Wise, households and firms want to keep a currency to deposit ratio, c, of 0.20, while…
A: The money multiplier measures the change in money supply due to a change in the monetary base. Money…
Q: The picture below depicts the market demand and average variable cost curve for a monopolist. Which…
A: A monopoly is a type of market structure.
Q: The graph below shows the Aggregate Expenditures Model diagram in Frohlandia. Potential GDP $10,000…
A: Here, the given graph shows the Keynesian view of economic equilibrium when aggregate expenditure…
Q: e that a country is endowed with 5 units of oil reserve. There is no oil substitute available. How…
A: P = 11-0.46q MC=$ 4 Discount rate= 3%
Q: Consider a closed economy with a government. Consumption is given by C = 1,000 + 0.8Yd Further, t…
A: Aggregate output is the sum of consumption, investment, government spending and net exports in an…
Q: Which of the following statements regarding a nonresident insurance producer is CORRECT? 1.The…
A: Nonresident Agent — an agent who is authorized in a house in which the person doesn't reside.
Q: 1. Eunhee works at a bank and receives $30,000 a year as her annual salary. She decided to quit this…
A: Opportunity cost is the cost of next best alternative which is foregone
Q: In a small open economy, is a negative supply shock or a negative demand shock more damaging for…
A: Negative supply shocks result in a reduction in aggregate supply.It causes a left shift in the…
Q: The need to stand out from the crowd by adding value is becoming of high importance. Select one: O…
A: The need to stand out from the crowd by adding value is becoming of high importance - TRUE
Q: How much will $4,200 be worth in 10 years with 7% interest compounded continuously? **** The future…
A: The amount is compounded continuously for 10 years at the rate of 7%
Q: List the factors that account for increases or decreases in productivity growth rates.
A: The measure that depicts the number of goods and services or output being produced by making use of…
Q: According to the analysis and data presented in class, the following are facts and possible reasons…
A: The answer is - Salaries for average wage earners have increased in proportion to their real…
Q: Exer 9A. In 2010, NEDA decided to add Service F in the basket of products for CPI computation Assume…
A: Answer 9 C. To calculate Gross Domestic Product, the formula used is : GDP = C + I + G + (N - X)…
Q: Analyse graphically how the Solow model growth implies that poor countries should experience a…
A: The Solow Growth Model is an exogenous model of economic development that analyzes differences in…
Q: Jake is planning to expand his economic consulting services for the next month. He can do this by…
A: Given:- Two ways to expand economic consulting service i.e either by employing more economic…
Q: Through developing countries make the largest contribution to the global concentrations of…
A: Introduction In developing countries, largest contributor of green house gases is deforestation.…
Q: ssume that a country is endowed with 4 units of oil reserve. There is no oil substitute available.…
A: In behavioral economics, willingness to pay (WTP) refers to the lowest or highest price at which a…
Q: Importance of a multichannel strategy for internal and external communications coca cola’s products…
A: From the perspective of the organisation, the basic goal of communication is for it to work well.…
Q: What is the unique point at which the Supply and Demand curves intersect? Question 16 options:…
A: Supply and demand curve shows relation between price and quantity in graphical form.
Q: Answer The following question The demand for good X has been estimated to be Qx = 10 - 0.5Px +…
A: The own price elasticity of demand is the proportion alternate in the amount demanded of a good or…
Q: a) Suppose Portugal and England are close trading partners, where Portugal sells wine to England and…
A: Balance of Trade refers to the part of the visible transaction of the Current Account of the Balance…
Q: Heywood says that some nationalisms can be progressive and liberating whilst others are irrational…
A: Left-wing nationalism, sometimes understood as socialist nationalism, not to be confounded with the…
Q: Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin…
A: Perfect competition is a market arrangement in which all businesses or enterprises offer the same…
Q: In The Wealth of Nations (1776), what does Adam Smith identify as the primary driver of the success…
A: "An Inquiry into the Nature and Causes of the Wealth of Nations," also known as "The Wealth of…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: The structure of a market where there are a large number of buyers and sellers selling homogenous…
Q: Which of the following statements about the Law of Supply is most accurate? Question 14 options:…
A: Supply refers to the quantity of the commodity which the producers supply at various prices in the…
Q: Consider country A. Its GDP is 500, and its income payments to foreign countries is 10 and its…
A: GDP=500income payments to foreign countries=10receipts from foreign countries=8
Q: QUESTION 3 Suppose the demand for oil is P-125Q-0.20. There are two oil producers who do not…
A: Production costs allude to each of the immediate and backhanded costs organizations face from…
Q: Income per capita in the poorest countries of the world is just five percent of the U.S. These…
A: When talking about the differences in the poor country and a rich country, it can be said that it is…
Q: Video games and sports events are two of the creative industries. Select one: True O False
A: Video games and sports event are two of the creative industries - TRUE
Q: Suppose a manufacturer and its retailer face the problem of double marginalization described in my…
A: Profit is the difference between total revenue and total cost. The total revenue is the revenue that…
Q: David earned a salary of $43,500$43,500 in 1994 and $89,000$89,000 in 2010. The consumer price index…
A: The Consumer Price Index measures the overall change in consumer prices over time based on a…
Q: Mary plans to borrow $10,000 now to start a business. She promised to repay the entire principal…
A: Compound interest: A=P1+r100nWhere, A=AmountP=Principalr=Rate of interestn=Time(In years)
Q: 4-52 1. (4-53) Assume a 10% interest rate and find S, T, and x. (Answer: S = $218.90; T = $54.30; x…
A: i=10%
Q: Multiple choice question and give a short explination about your answer: In the Mundell-Fleming…
A: Mundell Fleming's basic model, like the ISLM model, is based on the idea of fixed price index and…
Q: Monetary policy and fiscal policy often change at the same time. Suppose that the government wants…
A: IS-LM determines the equilibrium output and interest rate in the economy
Q: Market demand is given as Qd = 400 - 2P. Market supply is given as Qs = 3P + 100. In a perfectly…
A: Quantity demanded refers to the quantity demanded by the consumers at different prices during a…
Q: What is the difference between a monopolistically competitive industry and a monopoly? Multiple…
A: In monopolistically competitive market, there are large number of firms and in monopoly there is a…
Q: What steps are taken when the supply of employees is predicted to be greater than demand?
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: for the price of fertilizer, in regards to the price of oil. How big of a role does oil play? Is the…
A: The planet becomes additional sensorial to the benefits of big data, the oil industry does not…
Q: Farmers, even in the poorest countries of the developing world, make rational economic decisions…
A: Introduction Farmer of the poorest and developing countries are poor but they are efficient. So this…
Q: Please select ONE of the following questions as your discussion topic and respond with a paragraph…
A: The Federal Reserve System is in charge of central banking in the United States of America (often…
Q: Suppose the demand for oil is P=168Q-0.20. There are two oil producers who do not cooperate.…
A: A cartel can be defined as a collection of independent businesses or organizations that band…
Step by step
Solved in 2 steps
- Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 50 45 Profit or Loss 40 35 30 ATC 25 20 15 10 AVC 5 0 PRICE (Dollars per sweater). MC 0 2 4 6 8 10 12 14 16 20 18 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $15 per sweater, this firm will choose to produce sweaters per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $15 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be $ thousand per day in the short run.Carl and Simon are two pumpkin growers who are the only sellers of pumpkins at the market. The demand function for pumpkins is Q = 16,400 - 400P, where Q is the total number of pumpkins that reach the market and P is the price of pumpkins. Suppose further that each farmer has a constant marginal cost of $1 for each pumpkin produced. Assume that Carl can tell, by looking at Simon's fields, how many pumpkins Simon planted and how many Simon will harvest in the fall. (Suppose that Simon will sell every pumpkin that he produces.) Therefore, Carl sees how many pumpkins Simon is actually going to sell this year. Carl has this information before he makes his own decision about how many to plant. If Simon plants enough pumpkins to yield Qs this year, then Carl knows that the profit maximising amount to produce this year is QCarl = Group of answer choices a. 8,000 - Qs/2. b. 16,400 - 400Qs. c. 16,400 - 800Qs. d. 4,000 - Qs/2. e. 12,000 - QsSuppose the graph depicts the marginal cost (MC) curves of two profit maximizing Texas cotton farmers, Jesse and Neal. Assume Jesse and Neal sell their cotton in the same competitive market. If the market price is $4 per bale, how many bales of cotton should each farmer produce? Jesse's optimal output: 800 Neal's optimal output: 400 bales MC Neal = MC Jesse MC Neal MC Jesse Price and cost $10- 9 8 7 160 5 4 3 2 0 MC, Neal MC, Jesse 100 200 300 400 500 600 700 800 900 1000 Bales of cotton
- Carl and Simon are two pumpkin growers who are the only sellers of pumpkins at the market. The demand function for pumpkins is Q = 16,400 – 400P, where Q is the total number of pumpkins that reach the market and P is the price of pumpkins. Suppose further that each farmer has a constant marginal cost of $1 for each pumpkin produced. Assume that Carl can tell, by looking at Simon's fields, how many pumpkins Simon planted and how many Simon will harvest in the fall. (Suppose that Simon will sell every pumpkin that he produces.) Therefore, Carl sees how many pumpkins Simon is actually going to sell this year. Carl has this information before he makes his own decision about how many to plant. If Simon plants enough pumpkins to yield Qs this year, then Carl knows that the profit maximising amount to produce this year is Qcarl = O 8,000 – Qs/2. O 16,400 – 400Qs. O 16,400 – 800Qs. O 4,000 – Qs/2. O 12,000 – Qs.34 Suppose you run a resort just outside of Mesquite, Nevada. The following table represents the maximum willingness to pay for one night stay and one round of golf for David and John. Assume the marginal cost of a one night stay is $20 and $0 for a round of golf. David John $50 $110 $80 $35 If you set prices for lodging and golf individually, you will charge $ type your answer... One night stay: One round of golf: for one night's stay, $ type your answer... for one round of golf, and earn a profit of $ type your answer... If instead you bundle a one-night stay with a round of golf, you will charge $ type your answer... for the bundle and earn a profit of $ type your answer...A study of ethanol as a transportation fuel reveals that the competitive equilibrium is expected to be at a price of $4 per gallon and a consumption rate of 100 million gallons/day. For a production rate of 10 million gallons/day, the marginal cost is found to be $1 per gallon. Also, a a price of $10 per gallon the demand is 10 million gallons/day. Answer the following questions for this system. 1. Determine the equations for the demand and marginal cost lines. 2. Calculate the consumer and producer surplus for the market equilibrium. 3. It was discovered later that the above information ignored a government subsidy of 50 cents per gallon. How will the demand and marginal cost lines, and the competitive equilibrium, change if this subsidy is removed?
- 1. It is 1908 and you are the CEO of Ford Motor Company. General Motors startedproducing cars this year and has quickly become your chief rival. Their recent entrance, as wellas your assembly line methods, allows you the advantage of producing cars faster and choosingyour output levels first. Assume the 1908 inverse demand function for cars is P = 3900 - Q(customers view cars as identical products at this point in time) and production costs are C(qi) =100qi. a. What is Ford’s profit-maximizing output level? GM's?b. What is the market equilibrium price?c. How much profit does each firm earn?d. As the assembly line is used by other firms, the first-mover advantage disappears (fast forward100 years to present day), and more firms have entered the market (e.g. FCA, Tesla, Hyundai,Toyota, Honda, etc.), what do you expect to happen to Ford’s profit (assume demand andcosts are the same)? Explain.e. From 1908 into the 1920s, Ford offered customers one car: the Model T. Further, Henry isfamous…7. A honey farm is located next to an apple orchard and each acts as a competitive firm. Let the number of apples produced be measured by A and the amount of honey produced by H. The cost functions of the two firms are CH (H) = H²/100 and C₁(A)=4-H. The price of honey is £2 and the price of apples is £3. 100 a. If the firms operate independently, what is the equilibrium number of apples and amount of honey produced? Are these amounts the Pareto-efficient? Explain. b. Suppose the two firms merge. What is the profit maximising amount of apples and honey that the merged firm produce? Explain. c. What is the socially optimum amount of honey and apples? Discuss methods to induce the independent firms to produce the socially optimal number of apples and amount of honey. Explain.Suppose there are only two firms in a competitive market for a good. Firm 1's marginal cost curve is given by MC = 2.5 +0.5Q and the equation of 4+Q³. What is the equation of the - firm 2's marginal cost curve is MC supply function for this market? - a) MC = 6.5 +1.5Q⁹ b) MC = 0.33Q⁹ +3 c) Q³ = 3p - 9 d) P = 6.5 +1.5Qs
- Question 3 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the amount of the good produced in a competitive equilibrium in this economy? 7 4 6 3 5Discuss economies of scale and how average cost changes as output increases. What pricing strategy should a firm adopt while they are experiencing economies of scale? 250 words pleaseHubert owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on his property, making a large crater. The event attracts scientists and tourists, and Hubert decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists (Market A) and tourists (Market B). The following graphs show daily demand (D) curves and marginal revenue (MR) curves for the two markets. Hubert’s marginal cost of providing admission tickets is zero Suppose that at first, Hubert charges the same price of $8 per admission in both markets so that the total number of admissions demanded is_______tickets. Suppose now that Hubert decides to charge a different price in each market. To maximize revenue, Hubert should charge_________per admission in Market A and________per admission in Market B. At these prices, he will sell a total quantity of __________admission tickets per day. Complete the following table by calculating…