2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 + 0.01q. Demand for mink oil is as follows: Q = p2 What will be the long-run equilibrium price and quantity in the market? How many fims are in the industry?
Q: Question 35 Since 1970, the United States experienced stagflation O during all five recessionary…
A: Stagflation is a stage in which inflation and unemployment rate are high and growth rate of the…
Q: Which of the following statements is true? Select one: O a Keynes believed wages and prices are…
A: The curve that depicts various quantities of goods and services at different levels of price is…
Q: Which of the following is an example of a counter-cyclical policy? Select one: O a. The Fed lowering…
A: The business cycle illustrates the interval of expansion and recession in economic activity.…
Q: - production function is given by: Q (K.L) min ven this production technology, returns to scale…
A: Return to scale depicts relationship between the input and output. Return to scale can be increasing…
Q: 2. A consumer's demand for the single good x is given by x(p, y) = y/p, where p is the good's price,…
A:
Q: Which bundle of goods will maximize Mrs. Bain's utility given her budget for days of horseback…
A: A budget set is a collection of consumption bundles that a customer may choose from based on his or…
Q: In the open economy IS/LM model explain the relationship between the interest rate and the exchange…
A:
Q: You can afford a $900 per month mortgage payment. You've found a 30 year loan at 6.5% interest. a)…
A: Given Monthly mortgage payment A = $900 Time t= 30 years Rate of interest =6.5% compounded…
Q: Productivity is defined as the quantity of a. labor required to produce a nation’s GDP. b.…
A: GDP is the market value of final goods and services produced by an economy during a given period of…
Q: 2. A seller's production function is q = f(k,1) = (kl), w = v = 1, and the competitive output price…
A: Given Production function: q=f(k,l)=kl0.2 ...... (1) w=v=1 Price is P We will find…
Q: pose that for every open-market operation in the amount of $1, money supply increases by $3, i.e.,…
A: Money supply includes all the currency in form of cash and coins , also balances in the bank…
Q: What is standard of living? Explain one advantage and one disadvantage of using real GDP per capita…
A: Standard of living:- A country's or nation's standard of living is a representation of the…
Q: Doja Products placed a new machine into production 3 years ago. It had an installed cost of…
A: Given:- Installed cost of machine=$100,000 Life=5 years Salvage=$20,000 Depreciation amount for year…
Q: Question 38 If you go to the bank and notice that a dollar buys more Ghanaian cedis than it used to,…
A: A strong dollar is one that can buy more than its counterpart in another Ghanaian currency.
Q: QUESTION 6: 1 POINT Marginal Utility per Dollar |Quantity of Total Marginal Product A Utility…
A: Answer: Formula of marginal utility per dollar:Marginal utility per dollar=marginal utility of a…
Q: country will choose to protect an industry to promote future comparative advantage instead of…
A: *Answer: Comparative advantage: When a country is producing the output in which their opportunity…
Q: . The CIT School of Engineering needs P20,000,000.00 to pay for the building renovation in 6 years.…
A: A sum of money today is worth more than a sum of money in the future, according to the notion of…
Q: Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical…
A: Answer -1 According to neoclassical economics, the economy adjusts to its potential GDP output level…
Q: how does digital divide in some parts of the world limit the success of globalization?
A: Digital divide refers to a situation where the access to technology or the distribution of…
Q: Utility = (x,y)² the individual's share of private good production (=x/100). Notice that the…
A: *Answer: When two commodities are manufactured simultaneously, a production possibility curve (PPC)…
Q: 2
A: The aggregate demand curve shows the inverse relationship between two variables that are price level…
Q: Karen and Sophia want to buy a $225,000 home. They plan to pay 20% as a down payment, and take out a…
A: Note: We will answer the first 3 subparts of the question as the exact one was not specified. Please…
Q: When $100 is deposited in the banking system, it leads to maximum expansion in bank deposits of…
A: Given: Amount deposited=$100 Maximum expansion in bank deposits=$1000 Excess reserves=0
Q: In general, the sacrifice ratio is smaller, the... O a. Shorter it takes to revise inflationary…
A: In economics, the sacrifice ratio is used to explains the cost of reducing inflation in terms of a…
Q: Why is game theory often unworkable in real negotiations? a. Negotiators over-rely on readily…
A: The theoretical framework within the realm of game theory is consistently being upgraded by the…
Q: Determine whether the statement is true, false, or uncertain. If the statement is false or…
A: When talking about closed economy, it is the economy whose economic activities bate limited to its…
Q: When graphing the NTR and BL lines: Multiple Choice Both begin above the graph's origin. The NTR…
A: The amount collected after the relevant tax has been deducted from gross income is referred to as…
Q: 12. The effect of inflation on the price competitiveness of a country's products may be offset by: *…
A: When there is an increase in inflation in the open economy, it will lead to increase the price of…
Q: pose an economy's natural rate of unemployment is 5 percent. If the unemp percent, according to…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…
Q: The city of Calgary has a new subdivision, Paradise Mountain, at its outskirts. The city wants to…
A: Cost-Benefit analysis gives the discussion on how a certain activity has its costs and benefits and…
Q: A businessman purchases a common stock worth P1,000 every year for a period of 10 years. At the…
A: A businessman purchases a common stock worth P1,000 every year for a period of 10 years. At the of…
Q: Assume a banking system where all banks hold target levels of reserves and there is a currency…
A: The formula to measure the deposit multiplier is mentioned below: Deposit Multiplier =1Required…
Q: 5.4 In theory, what is the slope (value) of the indifference curve at Mrs. Bain's utility…
A: Answer (5.4) The slope of the indifference curve is called the marginal rate of substitution, which…
Q: A farmer is determining how much land, q (acres), to actively bring into cultivation over a two year…
A: Marginal benefit, also termed as marginal utility, is defined as the highest amount which the buyers…
Q: 5.3 What is the slope (value) of Mrs. Bain budget line? 5.4 In theory, what is the slope (value) of…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: In the circular flow model an example of a government spending flow would be collecting taxes O…
A:
Q: urgent 2 Let us assume that innovations in technology has enhanced global skill levels. However,…
A: The cobb Douglas Production function states that The production function in the long run is:-…
Q: Part I. Use the table below as a basis for your responses. 1. Fill in the table below. 2. Based on…
A: In economics, utility is defined as the satisfaction which a consumer receives from the consumption…
Q: 7.) Suppose there are four painters who can paint a house: Vincent, Claude, Pablo, and Andy. Each…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: b 28
A:
Q: PRICING ASSIGNMENT NO. 4: CONJOINT ANALYSIS RESEARCH SCENARIO Hotel A is a small hotel with small…
A: 1) Total utility of hotel A Feature Utility Small hotel 1.0 Small rooms 0.2 Outdoor pool…
Q: Suppose the economu is operating at less than full employment. an increase in aggregate demand will…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: According to the neoclassical growth model: A. The equilibrium growth rate can never change B.…
A: The neoclassical growth model explains how labor, capital and technology can results into steady…
Q: An annuity pays $1100 per year for 13 years Inflation is 6 percent per year a. If the real MARR is 8…
A: Given, Real MARR=8% Inflation=6%
Q: monetary expansion is. while the long-run effect is A) higher output and prices; higher prices but…
A:
Q: If a bank offers an investment opportunity for which the interest is compounded quarterly, and you…
A: The nominal interest rate alludes to the financing cost prior to considering expansion. nominal can…
Q: QUESTIONS 1. What was the symbolic significance of a successful terrorist attack on the World Trade…
A: Answer 3. The short-term consequences of the attack appeared to be significant. In the same way, the…
Q: In a closed economy, what determines consumption, investment, and government expenditures? Please…
A: Gross domestic product is the market value of final goods and services that are produced in an…
Q: 1. Why is the marketing concept sometimes difficult to implement in firms?
A: The detailed answer is as follows:-
Q: Sean increase production from 5 to 6 fire engines because the dominates in this scenario. True or…
A: Total Revenue: Total revenue is calculated by multiplying the price by the number of units sold.…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The handmade snuffbox industry is composed of 100 identical firms each having short-run total costs given by , where q is the output per day.20.5105STCqq=++(a) What is the short-run supply curve for each firm? What is the short-run supply curve for the market?(b) Suppose the demand is given by . What will be the equilibrium (both quantity and 110050QP=-price) in this marketplace? (c) What will each firm’s short-run profits be?Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Identify the price at which the firm breaks -even. Explain. Identify the price at which the frim shuts-down. Explain.An industry currently has 100 firms, each of which has fixed cost of $16 and averagevariable cost as follows:Quantity Average Variable Cost1 $ 12 23 34 45 56 6a. Compute a firm’s marginal cost and average total cost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How much does each firm produce? What isthe total quantity supplied in the market?c. In the long run, firms can enter and exit the market, and all entrants have the samecosts as above. As this market makes the transition to its long-run equilibrium, willthe price rise or fall? Will the quantity demanded rise or fall? Will the quantitysupplied by each firm rise or fall? Explain your answers.
- Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour, a unit of power). Draw 2graphs, one to represent the market (supply and demand), and one to represent a single firm (demand, marginal cost, and average cost curves). Assume a u-shaped average cost. Show the equilibrium price and the quantity produced by the market (Q) and by each individual firm (q). Next, to encourage conservation, Congress taxes all forms of energy EXCEPT solar power, causing an increase in the demand for solar. Show what happens to the market and the firm in the short run; indicate clearly what happens to price, quantity, and profit. What happens to the market and the firm in the long run? Indicate clearly what happens to price, quantity, and profit, for each the market and the firm.Below is the demand schedule for wholesale pallets of ice cream. Assume that the marginal cost of supplying a wholesale pallet of ice cream is a flat $40 per pallet. Price Quantity Total Revenue Total Cost Profit $100 40 $90 50 $80 60 $70 70 $60 80 $50 90 $40 100 First, complete the table above for TR, TC, and profit. If this were a competitive industry, where P=MC, what would be the price and quantity of wholesale ice cream? If ice cream were supplied instead by a profit-maximizing monopoly, what would be the price and quantity? If Ben and Jerry were to form a collusive duopoly for the production of ice cream, what would be the price and industry quantity? If Ben and Jerry split the market in d. evenly, what would be the output and profit for each of them? What if Ben were to cheat on the cartel and produce a higher output by 10 pallets: What is Ben’s resulting output…Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 −PThere are 9 firms in the market.a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve.b) Give the equation for each firm’s supply curve.the average-total-cost curve at its minimum? What is marginal cost and average totalc) Give the equation for the market supply curve for the short run in which the numbercost at that quantity?
- The table below shows the average cost (AC) for a purely competitive market. The average revenue (AR) is constant at RM5 per unit and the firm’s total fixed cost (TFC) is RM4. If the average revenue falls to RM3 per unit, calculate the firm’s new profit or loss at the equilibrium. Based on your answer, should the firm continue or stop the production? Justify. Output (Units) Total Revenue (RM) Average Cost (RM) Total Cost (RM) Marginal Cost (RM) Marginal Revenue (RM) 1 8.0 2 5.5 3 4.0 4 3.5 5 3.8 6 4.5 7 6.0Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…Assume that a purely competitive firm has the schedule of costs given in the table below. output TFC TVC TC 0 $500 $0 $500 1 500 150 650 2 500 200 700 3 500 260 760 4 500 340 840 5 500 450 950 6 500 590 1090 7 500 770 1270 8 500 1000 1500 9 500 1290 1790 10 500 1650 2150 Indicate what output the firm would produce and its profits in the following table and transform the information of price and quantity supplied into a supply curve in a diagram. Price Quantity supplied Profit (+) or loss (−) $ 50 150 250 _____ _____
- Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Assuming that the firm operates in a perfectly competitive market, supply the missing values in the table above. You may use a spreadsheet program to compute the values but must provide a step-by-step…Suppose that the market for chicken momos is perfectly competitive with ten firms producing momos. Tasty treat is one of the ten price-takers in the market for momos. The accompanying tables show the demand schedule for momos in Dhaka and cost schedule for "Tasty Treat". DEMAND SCHEDULE Price (BDT per plate) Quantity demanded (plate per hour) 10 900 25 675 30 600 40 450 50 300 70 0 COST SCHEDULE OF TASTY TREAT Output (plate per hour) Marginal Cost (BDT per extra plate) Average Variable Cost (BDT per plate) Average total cost (BDT per plate) 40 20 25 90 50 10 10 75 60 30 20 55 70 50 23 50 80 70 35 60 90 85 50 77 a) What is the value of the shut-down price and break-even price for Tasty Treat?How did you figure that out?b) Write down the individual supply schedule of chicken momos for Tasty Treat and the industry supply schedule for chicken momos.c) Plot the market demand and supply curves for chicken momos and find the equilibrium price and…Given: A. Daily demand curve for potato is Demand: Q = 1500 − 15P B. Long-run supply curve for potato is Q = 12P − 120 Note: QD demand in kilos per day and P is price per kilos. Question: 1. What is the long-run equilibrium Price and Quantity?2. Based on your answers in (1), what is consumer surplus at this equilibrium? What is producer surplus at this equilibrium?