A firm's short-run cost function is given by: C(q) = 50+ 10q — 4q² + q³ = If the firm can sell each unit of their output at a price of $5 (p maximizing level of output in the short-run? Profit maximizing q = 5), what is the firm's profit
Q: C = $3.5 trillion = $1.3 trillion G = $3.5 trillion Т = $3 trillion NX = $1 trillion f = 1 mpc = 0 d…
A: The money supply is the aggregate amount of money—cash, coins, and balances in bank accounts—in…
Q: If the Fed decides to leave the federal funds rate target range unchanged, we would expect _______.…
A: Commercial banks overnight lend and borrow from one another at the federal funds rate, which is the…
Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…
A: Price elasticity measures the responsiveness of quantity demanded to changes in the price level.
Q: Question 14 Consider the game below with a worker (W) and a firm (F). The worker initially can…
A: One of the most crucial ideas in game theory is the notion of Nash equilibrium. When no player would…
Q: C) List and briefly explain the four types of unemployment: Briefly explain each. 1. 2. 3. 4. D)…
A: "SInce you have asked multiple questions, we will solve first question for you. If you want specific…
Q: Price of Baskets $14 10 7 1 0 $210 $245 $420 40 $455 70 105 Domestic Supply Refer to Figure 9-1.…
A: Consumer surplus is the area below demand curve and above price. Consumer surplus is calculated by…
Q: B
A: The buyers who buy the good are worse off at higher prices, the consumer surplus will fall from…
Q: Deadweight loss is O A. maximized in a competitive market. B. gained by consumers only. C. the…
A: Macroeconomics refers to the economics that focuses on the performance of economies i.e. changes in…
Q: 4. Demonstrate that if the markets for two commodities are in equilibrium, the third market must…
A: In this case, law of Equi Marginal utility is mainly discussed here. Law of Equi Marginal utility…
Q: Suppose the information in the table is for a simple economy that produces and consumes only four…
A:
Q: Analyze the factors that would determine the impact of a price increase on the consumption of…
A: Price and demand for the good are negatively correlated with one another. The amount demanded…
Q: The table shows total cost and total revenue information for a perfectly (or purely) competitive…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: (i) State whether you agree or disagree with the following statement Explain what happens to (ii)…
A: Open market operation is the method used by the Central bank to change the money supply. When…
Q: Prepare a table and line graph comparing the unemployment rate for 2000-2019 data for Dominican…
A: The labor force of a nation includes all who are capable of working and are willing to work. An…
Q: Suppose the figure to the right depicts the labour market for entry-level jobs in Edmonton. If the…
A: Equilibrium in labor market is where demand for labor is equal to supply of labor. Equilibrium wage…
Q: this question has two parts; 1a and 1b. Assume that the following asset values (in millions of…
A: M1 and M2 are the measures of money supply M1 equals Federal Reserve Notes in circulation plus…
Q: Could you give further explanation in the meaning of "Min(X-S,0)" in Profit from Call Option…
A: Call option is actually a contract in which a consumer has a right to purchase an asset within…
Q: 1. ) Calculate the composite rate of return i' if the external interest rate 2 -3000 c=10%. Year Net…
A: A rate of return refers to the net gain or loss of an investment within a certain period of time,…
Q: Calculate the nominal GDP for 2011. • Calculate the nominal GDP for 2012. • Calculate the nominal…
A: Nominal GDP is the product of current year price and current year quantity. Nominal GDP includes…
Q: The Fed achieves its federal funds rate target _______. A. level by setting the discount…
A: To attain the target when the federal funds rate is below the Fed's target range, FED adopts the…
Q: Consider the supply curve in the figure at right, where the quantity is in units and the price is in…
A:
Q: Consider a market for some good where a binding price floor is in place. The surpluses associated…
A: Price Floor: When the market equilibrium price is quite low then in order to support the suppliers…
Q: Duopoly Market for mechanical pencils can be described by the following demand schedule: Price |…
A: The total cost (TC) is the number of expenditures firms does on the production of goods and…
Q: Using the attached chart, calculate the bundle prices and net profits to determine which bundle…
A: Net profit refers to the sum of money earned by your company after deducting all operational,…
Q: The Federal Reserve uses three main tools to conduct monetary policy, which are open market…
A: Monetary policy refers to the policy followed by the central bank of the country under which is…
Q: Duopoly Market for mechanical pencils can be described by the following demand schedule: Price |…
A: Demand Schedule - $6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800 => Fixed Cost = 340…
Q: Domestic low-skilled workers each work 1,920 hours a year on average, and they receive $8 per hour.…
A: Low skilled works are the works that requires less education and low skill. For example- A watchman…
Q: A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts…
A: One of the fundamental analyses in capital budgeting is replacement analysis. Physical…
Q: 3. Briefly explain how asymmetric information in the used car market can result in adverse selection…
A: Asymmetric information refers to a scenario where one side to a transaction has access to more…
Q: Which of the following is not a normative statement? a. The military budget should increase at the…
A: Two type of economics are there: 1. Positive Economics - In this economics, predictions are made for…
Q: Using the figure in the picture: 1. If firm 1 chooses to sell for $2 and firm 2 chooses to sell for…
A: Firms use Nash equilibrium to achieve their best strategy in a non-cooperative game. Pareto…
Q: Instructions You will draw four separate Aggregate-Demand/Aggregate-Supply graphs. Each graph will…
A: Note : As per Over guidelines we will solve a first three subparts . If you want any specific…
Q: 20. In the Keynesian model, a fall in the interest rate will shift the aggregate expenditure line…
A: Keynesian economics refers to the macroeconomic theory that shows the total spending for the economy…
Q: Bank Three has equity = $250 million, return on equity (ROE) = 15%, interest expense = $105 million,…
A: Equity= $250 million Interest expense = $105 million Provision for loan loss (P) = $30 million…
Q: Empirical evidence suggests that increases in the minimum wage do not result in reductions in…
A: Minimum wage refers to the government policies to set the minimum limit of the wage rate offered by…
Q: Suppose that we have an economy whose production can be represented by a Cobb Douglas production…
A: Cobb-Douglas Production Function is defined as a function which tends to model a relationship…
Q: Complete the following table by filling in the quantity sold, the price buyers pay, and the price…
A: Tax is the revenue of the government. Tax is the additional money payment that has to be paid over…
Q: . What has to be true of the capital account between two countries(in below question) if the current…
A: The current account and the capital account are the two components of the balance of payment (BOP)…
Q: In each of the following cases, classify the person as cyclically unemployed, structurally…
A: Unemployment means that the individual able to do work is searching for jobs but is unable to find…
Q: A shift of the supply curve from S to S, could be caused by A. a change in consumers' preferences…
A: A supply curve represents the relationship between the quantity supplied and the price of a product.…
Q: Problem 4 - Costless Magical MacGuffin Consider a consumer that lives only for two periods. He works…
A: Concerning two commodities, an indifference curve is a graph that shows which combinations of the…
Q: If the price of milk falls from $2.85 to $2.55, and this decreases the sales of juice by 2,500 units…
A: Two goods are substitute when the increase in price of one good , increases the demand for other…
Q: You are given the following information about aggregate demand at the existing price level for an…
A: A GDP gap refers to the difference between a country's current GDP and its potential GDP, as shown…
Q: An existing factory must be enlarged or replaced to accommodate new production machinery. The…
A: In the annual cost method the incomes and disbursements will be converted into an equivalent uniform…
Q: Using the following table, for each price level, calculate the optimal quantity of units for the…
A: A perfectly-competitive firm produces homogenous-product. These goods(G) are substitutable. A…
Q: A commercial bank has actual reserves of $29,000 and checkable-deposit liabilities of $35,000, and…
A: The sums the bank actually has on hand at any particular time are known as actual reserves. This…
Q: Economic investment refers to ________. Question 4 options: A) postponing purchases of goods…
A: Equipment and machinery employed in the production process are referred to as capital factors of…
Q: Rikana sells returnable containers to major food processors. The price received for the containers…
A: The production process involves the factor payments and maintaining a balance between the total…
Q: Machine Invention A machine is invented that makes jelly bean production more efficient. 5.…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping…
Q: The Fed's monetary policy instruments are _______. A. the core inflation rate and the…
A: The regulation of the money supply, the management of inflation and deflation, the adjustment of…
Step by step
Solved in 3 steps
- Mathematical Economics If fixed cost are 20, variable cost per unit are 2 and the demand function is P+ 2Q = 24, find the profit function in terms of Q.Would a cost function of 0 mean a linear line of supply curve? For example if 10 firms are on the market selling 10 goods and the cost function is 0?Joshua owns a small boat and catches lobster off the coast of Maine. His weekly cost function is TC(q) = 40 + 5q + 5q?. He sells his lobsters to the local wholesaler at the market price p (in dollars). a) Find Joshua's short-run supply function for lobsters. (Hit: In this case short-run marginal cost is the same as long-run marginal cost.) b) Find Joshua's long-run supply function for lobsters. c) Find Joshua's shutdown price and Joshua's breakeven price (the price at which profit equals zero). d) Suppose the market price is $30, calculate his profit. What will Joshua do in the long run? Explain. 1
- The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?The total revenue curve of a firm is R(x) = 32·5x – 12x2 and itsaverage cost A(x) = x² – 13x + 20 + 200; where x is the firm’s output. 30 x(a). Derive an expression, Π (x), for the firm’s profit function. [Hint: Average Cost = Total Cost quantity (Average cost)(quantity) = Total Cost Or Total Cost = (Average cost)(quantity); where, in this case, quantity is output level, x]. (b). Is the rate of change of profit increasing or decreasing when the output level of the firm is x = 10 and x = 30? (c). Determine the level of output for which profit is maximized. (d). What is the maximum profit.40 - 2P and its total cost 5. A firm's demand function is Q function is defined as TC = 100 + 2Q + 0.25 Q? . Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum level of output?
- The inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…Suppose the (inverse) demand for a firm’s product is given by P = 10−2Q and the cost function is C(Q) = 2Q What is the profit-maximizing level of output and price for this firm?The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ Number
- The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?What would it look like in excel?The cost function for Acme Laundry is C(q) = 50 + 30q +q?, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p? The output level at which the firm's profit is maximized as a function of p is q =|- (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.) If p= 60, then Acme Laundry should produce| units. (Enter your response as a whole number.)Find the price that will maximize profit for the demand and cost functions, where p is the price, x is the number of units, and C is the cost. Demand Function p= 78-0.1 square root x Cost Function C = 33x + 550 $ =