2. Suppose that the market demand for mountain spring water is given as  follows:  P = 1,200 - Q Mountain spring water can be produced at no cost.  a. What is the profit maximizing level of output and price of a monopolist?  b. What level of output would be produced by each firm in a Cournot  duopoly in the long run? What will the price be?  c. What will be the level of output and price in the long run if this industry  were perfectly competitive?

Q: 7. What are some industries in which products have proliferated and life cycles have shortened? How…

A: The process of introducing multiple variations of the same product into the market is termed…

Q: Examples of variable costs include sales commissions, utility costs, raw materials, administrative…

A: Administrative costs are not considered as variable costs

Q: The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost…

A: Total revenue is the total value of the commodities produced and sold in equilibrium. Economic costs…

Q: Jo sells beautiful flower bouquets at the Sunday markets. Assume the market for flower bouquets is…

A: Profit is the difference between the total revenue earned by a business and the total cost of…

Q: 3. Profit maximization using total cost and total revenue curves Suppose Frances runs a small…

A: Total Revenue: The total revenue is the amount that comes after multiplying the selling price with…

Q: Equalizing difference recognize that people are motivated by benefits beyond monetary compensation…

A: Monetary compensation refers to the payment of money to an individual or entity in exchange for…

Q: Suppose that you have one domestic production facility that supplies both the domestic and foreign…

A: The demand for the product in foreign markets Q*=2000-P* The marginal cost of production =300…

Q: 4. Billy and Ruth are thinking of buying a sofa. Billy's utility function is Ug(S, MB) = (1 + S)MB…

A: Utility is a measure of the satisfaction or well-being that a consumer or society derives from…

Q: Tougher product market competition will reduce structural unemployment. Discuss

A: Structural unemployment is defined as a long-term mismatch between employees' abilities and…

Q: Suppose again that checkable deposits started off as $200,000 in First Main Street Bank, the…

A: The banking industry plays a crucial role to the modern economy. Banks receive consumer money and…

Q: Provide 2 substantive postings to each of the 3 Discussion Question's each week. How is inflation…

A: Economic stability refers to the condition of an economy in which there is a low level of volatility…

Q: 1.Suppose MPC = 0.75, if government increases taxes by $2,000, how much will the household…

A: The information which has been given to us is as follows:- MPC (Marginal propensity to consume) =…

Q: (d) The long run average cost curve is U shaped because up to a certain point you have excess K/L…

A: In microeconomics, the firm theory refers to the neoclassical idea that every business exists to…

Q: 3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+…

A: A market form under which there are numerous firms that produce and sell a homogenous product. Any…

Q: A/ in capital, they will not be able to sell everything produced and profits will be expectations.

A: The cycle of production in economics refers to the process by which products and services are…

Q: IE 5545 VCG Mechanism Vickrey-Clarke Groves (VCG) mechanism. Four roommates are considering the…

A: VCG (Vickrey-Clarke-Groves) is a mechanism used in mechanism design, which is a field in economics…

Q: Unlike traditional social welfare programs, the Earned Income Tax Credit has been shown to increase:…

A: Earned Income Tax Credit (EITC) is a tax credit policy program that is intended to benefit low- to…

Q: Which of the following policies would increase the likelihood of economic growth in a country which…

A: In simple terms if in a country there is a rise in the production of goods and services over a…

Q: 7. For Lisa, peanut butter and jelly are perfect complements; she always likes to have 1 serving of…

A: Perfect complements goods are consumed in a fixed proportion and the indifference curve of these…

Q: Typically, there are two alternatives in a replacement analysis. One alternative is to replace the…

A: The first alternative is to keep using the defender and the second alternative is to replace it now…

Q: . What is the equilibrium rate of real GDP?        $  __ billion   b. If full-employment real…

A: Aggregate demand represents the total amount of goods and services that buyers in an economy are…

Q: 1. Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the…

A: The productivity and cost schedule of a firm depicts the relationship between the inputs (such as…

Q: Consider the bargaining problem of splitting a pie of size 1 with utility u(x1) = x1 for player 1…

A: In this bargaining problem, player 1 has a positively sloping, linear indifference curve where…

Q: The table below presents price and revenue information for Durham Co., a monopolistic competitor.…

A: Marginal revenue refers to an additional revenue that occurs by producing one more unit of output.…

Q: In an economy in which resources can move among industries with relative ease, a car. "in an ecsting…

A: The financial gain a firm or individual earns over a short period of time, typically within a year…

Q: Merchandise exports Merchandise imports Service exports Service imports Net capital account Net…

A: The balance of payments is a record of all international financial transactions made by a country's…

Q: For each of the following events, choose if it is likely to increase, decrease or not affect the…

A: At a given point in time, the total amount of money in circulation within an economy is termed its…

Q: Using the supply and demand functions​ below, derive the demand and supply curves if Y=​$55,000 and…

A: A supply function represents the relationship between the quantity of a good or service that a…

Q: Roulan has wealth of $40,000 as long as his business does not burn down. However, there is a 50%…

A: Actuarially fair premium=probability of loss*Size of loss Risk premium=expected value of the…

Q: Which policy should be more effective to use during recession to increase spending and borrowing, or…

A: In an economy and in the short run, the aggregate demand determines the output level of the economy.…

Q: If Phil borrows $25,000 from a loan company at an interest rate of 3.5% per year compounded weekly,…

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

Q: I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to…

A: Profit maximization refers to the process of optimizing or maximizing the profit of a firm or an…

Q: Suppose that during a recent year, a nation has the transactions related to its balance of p shown…

A: Merchandise account balance = Merchandise exports - Merchandise imports  Service account balance =…

Q: Answer the given question with a proper explanation and step-by-step solution.  Why is equilibrium,…

A: equilibrium refers to a state in which the supply and demand for particular good or service are…

Q: Elasticity is expressed in both positive and negative values   True  False

A: Elasticity is a measure of the responsiveness of one economic variable to a change in another…

Q: The term that describes the difference in wage rates in the labour market is called:…

A: Occupational wage structure: Wages differ from one job occupation to another job occupation based on…

Q: The many identical residents of Whoville love drinking Zlurp. Each resident has the following…

A: consumer equilibrium is the optimal consumption of commodities that provide the customer with the…

Q: 1. In some coastal town, operating a fishing boat costs $2,000 per month. Suppose that if x boats…

A: B1 shows the number of firm in perfect competition. In case of zero profit, Total Revenue (TR)=Total…

Q: Which of the following statements most accurately describes the relationship between inflation and…

A: The Phillips curve is a graphical representation of the inverse relationship among inflation and…

Q: 1) Evaluate how the used of technology and digital transformation create the path to the sustainalbe…

A: Sustainable development is an organisational principle of human sustenance which provides the…

Q: Assume that the required reserve ratio is 7.00%. The bank manager decides to lend Billy Bob Smith…

A: Here, it can be seen that the the total amount deposited in the bank is given as $3201.00 and…

Q: With the given information, answer the question.…

A: The expenditure-output model, popularly referred to as the Keynesian cross graph, derives the…

Q: Your senators claim that lowering prices would be good for everyone—“Who doesn’t like lower prices,…

A: The phase of falling prices in the economy no pertaining to a particular industry but for a fall in…

Q: 8. Economic fluctuations I The following graph shows a hypothetical economy in long-run equilibrium…

A: Aggregate demand shows quantity of output demanded at each price level. Aggregate supply shows…

Q: Consider the bargaining problem of splitting a pie of size 1 with utility u(x1) = x1 for player 1…

A: In this bargaining problem, player 1 has a positively sloping, linear indifference curve where…

Q: (d) The long run average cost curve is U shaped because up to a certain point you have excess K/L…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: graph an output price support. a prive support raises the price above the market price

A: A government policy or intervention designed to maintain or increase the market price of a…

Q: According to the sticky-price model, cou with lower rates of inflation will have a steeper short-run…

A: The sticky-price model is based at the idea that prices in the economy do no longer adjust…

Q: a. What is the largest amount that Carolyn is willing to pay to park her car in a garage? What is…

A: answer a ) Probability of car being stolen-p=0.5 Probability of car not being stolen-1-p=0.5   First…

Q: 3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+…

A: A perfectly competitive market has a large number of firms. Each firm is a price taker as goods sold…