5 suppose the industry demand function is p subscript d end subscript equals fraction numerator 90 over denominator y plus 1 end fraction, and the industry supply function is p subscripts end subscript equals y. To find the total market surplus (TS). a another answer b. LLLLLI 90n9+40.5 90in10-40.5 90in9-81 90in10-81 90in10+81 90in9+81 h 90in10-40.5
Q: the long-run, firms in perfect competition and monopolistic competition charge a price that is equal…
A: A perfectly competitive market differs from a monopolistic market because in the perfectly…
Q: A delivery car had a first cost of $32,000, an annual operating cost of $15,000, and an estimated…
A: The annual worth is the net of all the benefits and costs incurred over a one-year period.…
Q: Suppose in an economy, the initial deposits of $400 million lead to the creation of total deposit…
A: Given: Initial Deposits = $400 million Total Deposit = $4000 million
Q: raw the demand curve for an environmental service, for example carbon sequestration (process of…
A: The demand curve is a curve that is utilized in microeconomics to decide the quantity of a specific…
Q: ENGINEERING ECONOMY ABC company issued a 15% coupon interest rate, 8-years bond with a par value of…
A: The concept that depicts the difference between the present value of inflows of cash and the present…
Q: What is the definition of money? part-b: What are the different functions of money?…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 subparts for you. If…
Q: 4.
A: We know that The perfect competition is the type of market structure where there are large number of…
Q: H7
A: We know that Keynes reformulated the Quantity Theory of Money(QTM). He believes that money does not…
Q: What precautions should be taken while estimating national income by value-added method? Or What…
A: Value Added Method of calculating national income is also called the production method. The national…
Q: In the open-economy macroeconomic model, if a country's supply of loanable funds shifts right, then…
A: An open economy is a form of economy in which organisations from other nations trade goods in…
Q: John has got a Billie Eilish concert ticket for $600. However, when he arrived at the concert venue,…
A: The price consumer pays for good based on the maximum willingness of consumer to pay for good.
Q: Which of the following statements is not always correct? In two-input production models, constant…
A: Production function is the mathematical relation between inputs and output. Production is the…
Q: If the inverse demand function is P=10-Q and total cost is C=2Q, what is the optimal fixed cost to…
A: Demand and supply In perfect market competition the optimum quantity is produced where the demand…
Q: 2. You owe your best friend P2,000. Because you are short on cash, you offer to repay the loan over…
A: The amount that a lender adds to the principle to compensate a borrower for using assets is known as…
Q: tsource production to Bangladesh and other low-wage economies. Show your results in single diagram.…
A: Unemployment is a term alluding to people who are employable and effectively looking for a job yet…
Q: 012. Market equilibrium may not be achieved if there is A) only price ceiling. B) only price floor.…
A: In economics, market equilibrium is what is going on in which financial powers, for example, organic…
Q: The proceeds of the sale of NZ state owned assets in the 1980's were generally used to Select one:…
A: Anything that will or now has economic worth to a company is considered an asset. In essence, assets…
Q: 4. (Chapter 10) A town in northern Colorado is planning on investing in a water purification system.…
A: A cash flow diagram is a monetary instrument used to address the sources of income related with a…
Q: What would be the effect of an increase in money supply on aggregate demand, GDP and inflation ? Use…
A: As per Keynesians, an increase in the money supply will a. decrease the loan cost, and increase…
Q: The following is a total cost curve 1000 900 Total cost (5) 800 700 600 500 400- 300- 200 100- D TC…
A: Marginal cost, also known as the incremental cost refers to the increase or decrease in the cost of…
Q: In the long run, monopolistically competitive firms will charge price
A: Meaning of Monopolistic Competition: The term monopolistic competition refers to the situation…
Q: Suppose I live in a hypothetical country, Pandesia, where there is 100% reserve banking. I deposit…
A: Given information Initial deposits=$1000 Required reserves=100% 100% reserve banking is known as…
Q: If Boblandia had a flexible (floating) exchange rate, it would cost 5 Bobos to purchase a Canadian…
A: Exchange rate is the rate at which two nation currencies are exchanged and which is determined by…
Q: denton productions limited utilizes statistical analysis to determine the optimal price for its…
A: Total Revenue = Price*Quantity Total Profit = Total Revenue - Total Cost
Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…
A: Below, P price Q quantity C/TC cost/total cost TR total revenue MR marginal revenue MC marginal…
Q: Jill Johnson says the following: "I am currently producing 10,000 pizzas per month at a total cost…
A: Output1=Y1=10,000 pizzas Total Cost1=TC1=$70,000 Output2=Y2=10,001 pizzas Total Cost2=TC2=$70,040…
Q: Carefully define 'collusion' and use a Game theory model to show why it may occur.
A: Game theory is a theoretical framework for conceptualizing social situations including rival players…
Q: Does modernization as a planning objective create contradiction in the light of employment…
A: The generation of employment is a natural part of social development. The variety of needs that…
Q: the long run, if an economy's consumption spending is $5 trillion, its planned investment = $2…
A: Budget deficit is the difference between income and expenditure of government.
Q: A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: 1 \ 2 a b c A 2,2 2,1 0,0 B 3,1 3,0 1,3 C 1,3 3,2 3,1 a) Eliminate…
A: There are two players in the game : Player 1 & Player 2 Strategy Set of Player 1 = { A, B , C }…
Q: 5 suppose the industry demand function is p subscript d end subscript equals fraction numerator 90…
A: Demand function: Pd = 90/(Y+1) Supply function: Ps = Y
Q: Why does australia have a comparative advantage in producing wheat?
A: Comparative Advantage:- The capability to manufacture commodities and services with a reduced…
Q: An industry has two firms. Firm 1's cost unction is TC1(q1) = 2q1 + 500 and firm 2's cost function…
A: Cournot model is a part of oligopoly market. The firms compete on the basis of output in the Cournot…
Q: Demand for park visits is Q =10,000 −100P. How many visitors will attend if the park charges a…
A: Equilibrium price and quantity are connected components of an equilibrium market. Equilibrium…
Q: Which of the following would be identified as a social force in an environmental scan? Multiple…
A: Customers' changing attitudes and preferences are a social forces in an environmental scan; customs…
Q: What are some measures to remove the defects of Indian money market?
A: A part of the economy that offers short-term funding is the money market. Short-term loans are often…
Q: Consider the following demand and supply functions. D(x) = 83-0.4x, S(x) = 2x + 75.8,0 ≤ x ≤ 90 Step…
A: In the mentioned question we have been given demand and supply function. Demand function refers to…
Q: A bank charges 11% discount on short term loan& Find the sum received by the borrower who requests…
A: Given Discount rate =11% Loan amount =Php 1500 Starting date is October 3, 2011, and the maturity…
Q: Using AD and AS curves determine how an increase in the government's ability to improve…
A: A recession can be characterized as a supported time of feeble or negative development in genuine…
Q: A monopolist faces market demand Q = 30 - P, and has a marginal cost curve equal to MC = Q. I have…
A: Given Market demand equation Q=30-P ..... (1) Marginal cost curve MC=Q…
Q: 9. An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in…
A: Given The first cost of the machine (P)=$1,050,000 Salvage value (F)=$225,000 Maintenance cost…
Q: The Great Resignation: What does it mean for the economy?
A: The phenomenon known as "The Great Resignation" refers to the unprecedented amount of workers…
Q: What precautions should be taken while estimating national income by income method? Or What…
A: The total income generated by a nation's economic activities over the course of a year is known as…
Q: Most successful examples of modern economic growth have occurred i country with A. exports of…
A: Modern Economic growth development is an expansion in the creation of financial labor and products,…
Q: What are the defects of Indian money market?
A: The money market is a group of institutions, traditions, and conventions created to facilitate…
Q: QUESTION 27 If nominal GDP in 2014 is $20.000 billion while real GDP is $16,500 billion, then the…
A: GDP Deflator = Nominal GDPReal GDP×100Unemployment rate = Number of Unemployed personLabor…
Q: The price elasticity of demand for peanuts is 2.5 by what percentage will quantity demanded rise if…
A: Price elasticity of demand (Ed) is the ratio of% change in Qd(quantity demand) and% change in…
Q: Currently, you get 2.2 Canadian dollars for each Wakandan dollar. In Canada, you can buy a Big Mac…
A: Purchasing Power Parity is the equilibrium between two currencies of two countries that is brought…
Q: Discuss the factors (such as tastes and preferences, number of consumers, Price related to goods,…
A: Price of the product cannot be the only thing to affect the demand of the product. Apart from the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Suppose the demand for a product X produced by a company AAA is given by the following function: QX = 2000 - 250*PX. At what price per item of the product X (EUR) can this copmany maximize its total revenues? Fill in the Table gaps: Demand function Price function Total Revenue (EUR) Marginal Revenue (EUR) Quantity Price per product (EUR) Q = 2000 - 250P P = ? TR = Q*P MR = dTR/dQ = 0 Q = ? P = (2000 - Q)/250 250P = 2000 - Q TR = Q*(2000 - Q)/250 MR = 8 - 2*Q/250 Q/125 = 8 P = (2000 - 1000)/250 P = (2000 - Q)/250 TR = 8*Q - Q^2/250 8 - Q/125 = 0 Q = 1000 P = 4 Alternative solution Demand function Total Revenue (EUR) Marginal Revenue (EUR) Price per product (EUR) Q = 2000 - 250P TR = Q*P MR = dTR/dP = 0 2000 - 500*P = 0 TR = (2000 - 250P)*P MR = 2000 - 2*250*P 500*P = 2000 TR = 2000P - 250P^2 MR = 2000 - 500*P P = 4A firm faces the following average revenue (demand) curve:P = 120 − 0.02Qwhere Q is weekly production and P is price, measured in cents per unit. The firm’s costfunction is given by C = 60Q + 25,000. Assume that the firm maximizes profits.i. What is the level of production, price, and total profit per week?ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be thenew level of production, price, and profit?b. The United States currently imports all of its coffee. The annual demand for coffee by U.S.consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions ofpounds) and P is the market price per pound of coffee. World producers can harvest and shipcoffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S.distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market iscompetitive. Congress is considering a tariff on coffee imports of $2 per pound.i. If there…In 2008 a car manufacturer sold 10,000 units of its leading model at N10,000. After deducting operating costs, dealers’ costs and all other variable cost this produced a surplus of N4,000 on each unit sold. Due to the recession, sales slump in early 2009 and the marketing director advises a price cut of N2000, arguing that this makes sense because the Own Price Elasticity of demand is –1.5. Calculate the amount of surplus that would be generated by the manufacturer in 2009 if the marketing director is correct and her recommendation is accepted.
- a. A firm faces the following average revenue (demand) curve:P = 120 − 0.02Qwhere Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. i. What is the level of production, price, and total profit per week?ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit?1. The market demand function of a perfectly competitive market is Q=500-p, and the cost function of an individual company is C(q)=q^3-20q^2+110q. Suppose that the government imposes a tax of 10 per unit of transaction on companies. In the long-term equilibrium, find K-L when you indicate the number of companies as L and the market price as K. Find W1 - W2, W1 is when no tax is imposed, and W2 is when the government imposes a tax of 10 per unit of transaction on an enterprise.ASAP 26) Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20- Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market. Find the value of deadweight loss. Make sure to show your answer both graphically and algebraically.
- Suppose a firm faces the demand curve P = 100 – Q, while its costs are given by TC = 100 + 10Q, so MC = 10. Find the profit maximizing price and quantity for this firm, if it can only charge one price. Calculate the firm’s profit. Make a diagram, and illustrate consumer surplus, producer surplus, and deadweight loss, if any. Does this analysis suggest any problems with this situation from a public policy standpoint? Does the analysis suggest any unexploited business opportunities? Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.The demand and supply functions for basic cable TV in the local market are given as: QD = 200,000 – 4,000P QS =20,000 + 2,000P. Determine the equilibrium price and quantity that will prevail in an unregulated market. Calculate the consumer surplus, producer surplus, and total surplus in this market. Is this market efficient? Why or why not? If the government implements a price ceiling of $15 on the price of basic cable service, what will be the quantity of cable service that will prevail in the market? Is there a surplus or a shortage, and if so, how much? With the new government policy, is there a deadweight loss in the market? If so, why is there a deadweight loss and how much is the deadweight loss? Are consumers better off or worse off with this policy? Are producers better off or worse off? Is society on the whole better off or worse off?A cruise ship company offers two packages to its clients: an “economy” package and a “deluxe” package with more amenities to its higher-paying customers. The company estimates that its customers have the following demand functions: Economy package: Q(E) = 20,000 - 10PE Deluxe package: Q(D) = 5900 - 1.5PD The costs for the two services (as a function of the number of passengers) are: Economy passenger: C(QE) = 5000 + 100QE + 0.1Q^2E Deluxe passenger: C(QD) = 5000 + 200QD + 6Q^2D What prices should the company set for the economy and deluxe packages? What are the number of passengers that the ship will have in each package, and how much profit does the company make per cruise? Now assume the ship has a maximum capacity of 4,000 people. How many spaces should be arranged for deluxe passengers and how many for economy? What prices should the company set for the two packages? What is the profit for the company now?
- Question 6 A market has a demand function given by equation Qd=180-2P, and a supply function given by the equation Qs= -15+P. the market is government-regulated with price support per unit and production quotas. If the price is set at $72 per unit what production quota is needed to make sure there are no shortages of surpluses? Considering the price support and the quota, calculate the consumer surplus Calculate the producer surplus Calculate the deadweight lossA more precise description of the demand conditions show that it also depends on a number of other factors, including the CO2 quota price, the interest rate and the price of electricity in the Nordic wholesale market, Nordpool. An overall demand function can thus be described as: Q = 33.33 - 0.000004167 * P + 0.04167 * PCO2 - 0.4167 * r - 0.00833 * Pel, where Q is the quantity sold, P is the price, PCO2 is the price of the EU's CO2 quotas, measured in euros per tonnes, cf. Chart 1, r is the banks' average lending rate measured in per cent. pa., and Pel is the Nordpool wholesale price of electricity excl. network and system tariffs as well as charges, measured as Danish kroner per MWh (mega-watt-time). P can here be set to DKK 4,000,000, PCO2 can be set to 62, r to 2.37 and Pel can be set to 250. Define the concept of price elasticity more generally and calculate the price elasticity as well as the cross-price elasticities with regard to the CO2 price, the interest rate…(2) (Assume that s = 0 (there is no subsidy.)(a) Write down firm A’s profit function. (No work required.)(b) Find each firm’s best response function. (You may do this directly or by setting s to zero inyour expressions from (1b).(c) Solve for equilibrium outputs (q*A, q*B). You may either use the symmetry in this problem toassume a symmetric solution, or solve for firm B’s best response and solve the two best responsessimultaneously. (d) Solve for the equilibrium price.(e) Solve for the equilibrium profits.