4. The following graph shows the price, marginal cost and average cost curves for a firm. RM /MC 15 ATC 9 AVC DD=MR 7 Quantity 25 104 150 (Units) a) Identify the type of market structure the firm is operating in. Justify your answer. b) What is the profit maximizing price and output for this firm? c) Calculate the amount of profit or loss at the equilibrium point. State the type of profit.
Q: In which of the following situations is it least advantageous to be lending? Select one: A. The…
A: Answer: When the real interest rate will be the lowest the lending will be the least advantageous.…
Q: A cell phone company has a fixed cost of $1.200.000 per month and a variable cost of $21 per month…
A: Fixed cost = $1,200,000 Variable cost = $21 per month Selling price = $37.5
Q: a W 3,5 3,4 8,4 0,0 3,3 8,9 y 0,1 5,9 9,8 Describe a strategy for player 1 that dominates x.
A:
Q: Given demand and supply equation as follows: Qd = 100 - 5P Qs = 20 + 5P a) find the equilibrium…
A: The market is in equilibrium when quantiy demanded equals quantity supplied. So we equate the demand…
Q: Explain the impact of each of the following scenarios on ONLY the market for apples in Gauteng. •…
A: Hi! thanks for the question but as per the guidelines, we answer three sub-parts at one time. Kindly…
Q: According to the Taylor Principle, The Fed should increase interest rates by 1.5 times the…
A: Taylor rule: R = r* + π + 0.5(π - π*) + 0.5(Output gap) where, R = nominal federal funds rate r* =…
Q: company is considering constructing a plant to manufacture a proposed new product. The land costs…
A: Given that Land cost=P300000 Building Cost =P600000 Equipment Cost= P250,000 Additional…
Q: Q) Is there any deadweight loss associated with monopolistically competitive market structure? Why…
A: Monopolistic competition refers to the market form where there are large number of buyers and…
Q: This worksheet provides information for the MARKET FOR CELL PHONES. For each of these unrelated…
A: 4. The price of call made from landline increases The law of demand is affected when the price of…
Q: You were promoted as the manager of a new Clean-Well Sanitary Store that sells cleaning and…
A:
Q: Which of the following statements regarding fiscal policy is correct? Select one: a. Expansionary…
A: Recession is a time period in the economy when there is a continuous fall in the output.
Q: 3. Consider the following degenerate game. Please find all the pure and mixed strategy Nash…
A:
Q: 4. Suppose that Okun's law can be described by the follOwIng ey Y-Y* — -3(и — и") Y* %3D Where u is…
A: Okun's Law refers to the empirically observed relationship stated between unemployment and the loss…
Q: Consider the perfectly competitive model applied to the market for corporate discount bonds.…
A: Going by the loanable fund theory of bonds market there are two major players in the market , savers…
Q: Determine optimal number of needles to order, given D= 2,000 units, S = $15 per order, H= $.50 per…
A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…
Q: Electronics is revising its strategic HR plan and comparing employment needs to the level of sales.…
A: HR is the arrangement of individuals who make up the labor force of an association, business area,…
Q: In a particular very small region, the consumer price index, C, depends on the current value of…
A: Given, The formula for consumer price index (C) is given as: C=100+e-EPF where, E= Gross regional…
Q: (1) Lobbyists are supposed to provide two things to the legislative process. A. Greed and corruption…
A: The answer is - C. Information and access
Q: Ch.4 Homework Assignment: Instructions: Answer the question(s) or solve the problem(s) below. Show…
A: The number of dollars that can be exchanged for a specific quantity of a given commodity is known as…
Q: Malaysia is an upper middle income country that has grown through foreign direct investment in…
A: Foreign direct investment refers to these situation when a country collects funds for investment…
Q: Assume that a country is considering whether it wishes to invest in a new opportunity. While the…
A: The present value is the current value of the future output.
Q: In your own words, explain the horizontal and vertical interpretation of the demand curve. 2.…
A: Demand - it refers to the quantity of a good that a consumer is able and willing to purchase during…
Q: Exercise 4 Use a combination of text and drawing of figures when answering the following questions:…
A: Fiscal policy Fiscal policy refers to the policy of the government and central bank of the nation…
Q: Explain and discuss the relationship between the elasticity of demand for the product and the…
A: 1. The relationship between the elasticity of demand for the product and the elasticity of demand…
Q: How important are services in the U.S. economy?
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Q: The following graph shows the price, marginal cost and average cost curves for a t RM MC 15 ATC AVC…
A: The equilibrium occurs where the P=MC.
Q: the mobile phone market, Samsung and Apple constitute a duopoly in the production of devices. The…
A: *Answer: In the case o a Cournot solution model, every firm is able to determine the output,…
Q: In order to shift the vertical aggregate supply curve to the left, which of the following would have…
A: The long-run aggregate supply (LRAS) curve depicts the real output level (or the potential level of…
Q: Consider a Variant oF the utimatum qame we Studicd in class IN which playcrs have Fairness…
A: Introduction Ultimatum game described human unwillingness about injustice. Fairness can be studied…
Q: P 500 is deposited at the end of each month at a certain interest rate compounded monthly. The…
A: Deposit = P 500 interest rate compounded monthly. The present value is P 10,622 the future value…
Q: Inflation targeting a strategy in which the central bank pursues a. a certain numerical…
A: Central Bank implements monetary policy for different purposes according to the needs of the economy…
Q: May the price in the contract of sale be in dollars? A. Yes. As long as the price can be converted…
A: When the price in the contract of sale is in dollars then it is acceptable to both the parties…
Q: Satisfaction resulting from the consumption of a particular commodity refers to Opportunity Cost. O…
A: "Opportunity cost represents the value which is foregone when choosing in between two or more…
Q: Using the possibiliting Frontier ExpRain the concept of Opportunity cost moving From D.toA and B to…
A: Answer - Opportunity cost :- It is the cost that an individual need to pay to choose one option…
Q: What would be the socially optimal Q* and P* (round to 1 decimal place if needed
A:
Q: syndicate wishes to purchase an oil well which estimates indicate, will produce a net income of P2M…
A: *Answer: Given that syndicate wishes to purchase an oil well which estimates indicate, will produce…
Q: Assume you have two goods and a b> 0 income. How does the imposition of a lump-sum tax T, which is…
A: Lump sum tax is the tax that an individual has to pay the same amount regardless of any…
Q: escribe the prisoner's dilemma and provide an example. ( make sure your example is related to…
A: A paradox in decision analysis known as the prisoner's dilemma occurs when two people acting in…
Q: If you invest $7,000 at 10% per year, compounded continuously, how much would it be worth in five…
A:
Q: A new boiler was installed by a textile plant at a total cost P300,000 and project to have a useful…
A: First, convert all values into an equivalent annual value (A),Then, we divide the equivalent annual…
Q: Read the following extract and answer questions 1. and 2. Pay rises offered despite Bank of England…
A: Wage stability is an essential condition for price stability. Wage stability does not always mean…
Q: Consider the market for wheat which is a perfectly competitive market. Is the market demand curve…
A: The term "perfect competition" refers to an ideal market arrangement. In a perfect competition…
Q: D3) The dominance of the US economy and incredible market returns from 1946-present can, in…
A: The United States, the United Kingdom, and China released the Potsdam Declaration on July 26, 1945,…
Q: Discuss the following statement: “The Capital Asset Pricing model (CAPM) has solved all the problems…
A: At the marketplace, there are different types of risks associated with different investment projects…
Q: d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P.…
A: *Answer: Given:- u(x,y)=(x+2)y Budget line will become:- P1x+P2y=m P1=Price of x P2=Price of y
Q: 1.7 Read the following extract and answer the question that follows. Construction data fudging kills…
A: Answer: (1.7). The given extract talks about the mismanagement in data collection and compilation by…
Q: Based on the material of the chapter “money growth and inflation” of your text book explain with the…
A: The financial purpose at the back of overseas capital or enterprise funding via way of means of any…
Q: how the 17 UN sustainable development goals are inter-related. Show SDG7 inter-relation with other…
A: Introduction The United Nations' Sustainable Development Agenda lays out a complete perspective for…
Q: Assume the following model of the economy C = 60 + 0.75(Y – T) I = 45 – 5r G = 40 and T = 40 M$ =…
A: IS - LM curves refers that investment savings-liquidity preference-money supply , these curves show…
Q: Identify three factors that are likely to affect the price elasticity of supply for rice. Clearly…
A: The supply price elasticity of a good or service is calculated in reaction to a change in its market…
Step by step
Solved in 2 steps with 2 images
- 1- Suppose that the total cost function of a firm is given as follows;TC = 500 + 2Q2And the price of the firm’s product is determined by the market equilibrium at $100.a- Set the profit maximizing condition . Find the profit maximizing output level for this firm .b- What is the total revenue ?c- What is the total cost ?d- What is the profit earned by the firm ?e- Illustrate your answer by using a well-labeled graph .f- Denote the break even price level with Pb on the same graph .g- Denote the shut down price level with Ps on the same graph.h- Show the firm’s supply curve on the same graph .i- Does the firm function in short-run or long-run ? Why ?2. Two cereal firms that set prices and sell differentiated products propose to merge. Firm 1sells CrunchyCrunch for a price of $10 with a marginal cost of $6. Firm 2 sells FibryFibre for aprice of $12 and a marginal cost of $6.(a) When the price of CC rises, 20% of its lost demand goes to FF. What is the marginal costreduction for CC that is required to offset the upwards pricing pressure on the CC price?(b) You are employed as a consultant by the merging firms. You know that the DOJ knowsthat the marginal cost of FF will fall by 50 cents as a result of the merger, but that the agency isunsure of the diversion between FF and CC. How small will you need to claim that the diversionis in order for there to be no net upwards pricing pressure on the CC price?Answer the questions based on the table below - Complete the table below. - In which market does this firm operate? Explain your reasons. - Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium. Quantity(unit) Total Revenue($) Average Revenue($) MarginalRevenue($) TotalCost($) MarginalCost($) 1 10 5 2 18 11 3 24 16 4 28 20 5 30 23 6 30 25
- Suppose that the total cost function of a firm is given as follows; TC = 500 + 2Q2 And the price of the firms product is determined by the market equilibrium at $100. a) set the profit maximizing condition. Find the profit maximizing output level for the firm. b) what is the total revenue c) what is the total cost? d) what is the profit earned by the firm e) illustrate your answer by using a well labeled graph.7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. If there were 20 firms in this market, the short-run equilibrium price of copper would be ___ per…Consider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MCMC), average total cost (ATCATC), and average variable cost (AVCAVC) curves shown on the following graph. The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. If there were 20 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this…
- 7. Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for titanium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. If there were 20 firms in this market, the short-run equilibrium price of titanium would…Suppose 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…A firm operating in a perfectly competitive market has a total cost function: CT = Q3 - 24Q2 + 260Q + 350Supply and demand functions in this market are Qo = 10 P - 750 and Qd = 6,000 - 15 Pa. Calculate what quantity you will produce to maximize profits and find profit you will make.b. Graph tmarket equilibrium and firm's equilibrium and calculate minimum operating profit.
- Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only] If the market turns into a Monopoly market again, what will be the total deadweight loss created? [ Answer in Numerical value only]Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia. The marginal cost curves for both firms are shown in the accompanying graph. a. Suppose the market price of tilapia is $2.50 per pound. Move point A to Ripple Rock’s quantity sold. Move point B to The Fishin’ Company’s quantity sold. b. How many pounds of tilapia do they collectively supply?________thousand pounds c. To achieve efficient production, The Fishin’ Company should supply _____ ("more", or "less", or "the same") it is currently producing, and Ripple Rock should supply __________ ("more", or "less", or "the same") it is currently producing.c) Assume that the market price for bagel services is 42 and store produces 30 units of the bagel. Calculate theprofit level. Is the store profit maximizing? Explain your answer. d) Go back to part c) and assume that there are 100 identical bagel store in the market. Determine the market supply curve. (You will obtain total market quantity, Q, as a function of price,P). Are elasticities of individual firm supply and market supply curves different? e) Given the market supply curve you have calculated in part d), now assume that market demand forhairdressers are given by Q=2900-50P. Find the equilibrium price and quantity in the market. Does the marketequilibrium correspond to long-run equilibrium? Explain