A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets Select one: O a. TR = TC. O b. MC=AVC. OC. MR MC. Od. MC = ATC
Q: Lorenzo and Neha are farmers. Each one owns a 12-acre plot of land. The following table shows the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 6. (a). Show analytically that if costless negotiation is possible, rights are well- specified, and…
A: Negative externality represents the market failure as it does not give the actual cost or benefit to…
Q: Bobby has been recently hired to work on a highway construction crew for the summer. The work is…
A: According to the question, Bobby was recently employed for the summer to work on a highway…
Q: This figure depicts a situation in a monopolistically competitive market. MC ATC PRICE 100 8 882 889…
A:
Q: Question 56 Suppose a consumer has an income of $800 per month and that she spends her entire income…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Solve the following game, identify whether pure or mixed strategy, perform dominance strategy, and…
A: We have two player zero sum game, where one player is maximiser and other player is minimiser in the…
Q: A firm typically achieves its position as a monopolist as a result of _. (a) the absence of…
A: Long-term earnings are the income generated with the aid of using the enterprise over an extended…
Q: what is duverger's law and how dose it help to explain the two-party system in the us?
A: Maurice Duverger, a French sociologist, is widely credited with discovering and documenting this…
Q: Player 2 Strategy A Strategy B Strategy 1 (1,4) (2,3) Player 1 Strategy 2 (6,5) (5,4) nsider the…
A: The dominant strategy is the best course of action no matter what types of strategies are followed…
Q: Question: Derive the income elasticity of demand for individuals with Cobb-Douglas (U(91, 92) =…
A: The elasticity of demand refers to changes in demand that might occur due to the change in economic…
Q: Does migration cause poverty? Explain.
A: In economics, migration refers to the situation when people move from one country to another country…
Q: Suppose the following game is played infinite times in the future. Time discount is 0.90. What…
A: The outcome of a situation of interactions between persons with competing interests is studied by…
Q: The 2017 U.S. gross domestic product (GDP) was valued at 19,390,604,000 dollars. How many Gateway…
A: Gross Domestic Product Gross domestic product estimates the value of all finished goods and services…
Q: Evaluate the following statement: “Predatory pricing in a market is a Nash equilibrium strategy…
A: Predatory Pricing Predatory pricing is the deliberate strategy of setting the prices by the…
Q: When using the Fed model to diagnose the economy, if inflation rises even though the economy is weak…
A: When talking about inflation in an economy, it explains the upward movement in the general price of…
Q: Assume that the level of autonomous consumption in an economy equals 600, the level of planned…
A: "Macroeconomic equilibrium occurs at a point where aggregate supply of the economy equates the…
Q: The action of the British government during the Opium War is an example of unilateral political…
A: Trade between China and the West was done within the constraints of the canton system, centered in…
Q: iPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes…
A: Equilibrium in the market occurs at the intersection of demand and supply curves
Q: Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8%…
A: Future value (FV) is the value of an asset in the future based on its present value, assuming a…
Q: 5. A plastic company operates 300 days a year. It produces and supplies 300,000 plastic caps for…
A: Operates = 300 days Supplies = 300,000 plastic cups Production = 12000pcs Annual Carrying Cost =…
Q: How does it reconcile cross-sectional data with that from time series macroeconomic data
A: Milton Friedman demonstrates that the total cost of admission is indistinguishable from never-ending…
Q: 3.c. Government raised the tax. Answer how the curves below would shift. Aggregate demand curve:…
A: The quantity of goods demanded at different price level in the economy is reffered to be as…
Q: Consider a 2-good economy and a consumer endowed with a positive net income m. If the unit prices of…
A: Given information Consumer is indifferent between 5 units of X1 and 8 units of X2 P1=2P1 M>0
Q: Can farmers control the internal risks easier? Are there ways to also manage external risks? Why or…
A: Business risk refers to a variety of causes and events that may impact a company's operational…
Q: What is the relationship between the marginal and average propensity to consume in the standard…
A: Concept: Average propensity to consume is the ratio of total consumption to total income which…
Q: Explain how the theory of absolute advantage conflicts with the theory of mercantilism
A: In response to the mercantilism system that ruled 18th century economic theory.Adam Smith disproved…
Q: in competitive labor market. O. The company's marginal expense of labor is equal to the company's…
A: Answer: In a competitive labor market, the suppliers and buyers both will be price takers. It means…
Q: price goes from $2 to $3. Quanity demanded goes from 300 to 400. What is the elasticity of demand?
A: Price elasticity is the description of change in the demand for a product or service because of the…
Q: Economics Assume that a country is endowed with 47 units of oil reserve. (a) the marginal…
A: * ANSWER :- Given that , Marginal willingness to pay = demand curve equation : P = 10 - 0.31q…
Q: An increase in unemployment is seen graphically as a movement to the left along a movement to the…
A: Philips curve shows relationship between inflation rate and unemployment rate.
Q: Petiville has 200 unemployed people. Of these 200 people, 35 are unemployed for two weeks before…
A: A person is said to be unemployed when person is not getting job even at prevailing wage rate . And…
Q: uaget eese is 14. (WINE) (WINE) (WINE) TOTAL UTILITY MARGINAL UTILITY MARGINAL UTILITY/dollar 60…
A: Marginal utility is the change in total utility due to a change in consumption by a unit. MU =…
Q: 5. Suppose that labor cost P350.00 per day and rental price of capital cost is P2,000.00 per unit.…
A:
Q: C = 150+ 0.8YD Ī= 210 G = 600 TR= 300 t = 0.25
A: Aggregate expenditure: Aggregate expenditure is a sum of consumption (C), investment (I), and…
Q: If a spending shock reduces aggregate expenditure by $600 million and the multiplier is 2.5, then…
A: Multiplier is the factor by which equilibrium GDP changes when there is a change in autonomous…
Q: 82. Figure: Price and Quantity 2 Price $100 A 80 60 40 20 50 B C E F S D D 10 20 30 40 50 60 70 80…
A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…
Q: Allocate the following transactions to the Kazakhstan Balance of payment below and fill it with…
A: The Balance of payment statement of a nation demonstrates whether it has a deficit or surplus of…
Q: There are two firms A and B. Firms compete in a Cournot Duopoly in Karhide. They set quantities qA…
A:
Q: Malthus was the first theorist to introduce a well- developed exogenous theory of wages. The…
A:
Q: The 3471 people residing in the state of Oz want their yellow brick road repaved. It could be…
A: Given the following information: Oz population = 3471Nations population = 4996645Cost of standard…
Q: tea Candonia has a comparative advantage in the production of while Sylvania has a comparative…
A: Opportunity cost refers to the next best alternative forgone
Q: 1. What is the present worth of annually payments (2000$) if the first payment will deposit after…
A: Given information, Annual payment (A): $2000 Time period (N): 15 years Interest rate (i): 7% To…
Q: The experience of Greece illustrates some of the challenges of the eurozone. As a result of the…
A: In this situation:- Due to the global financial crisis that began in 2007–2008, Greece was in deep…
Q: A researcher interviewed 2067 people and asked whether they were the primary decision makers in the…
A: The chi-square says that assuming noticed frequencies fit the normal frequencies, we realize that…
Q: The price elasticity of supply tends to become more elastic in the long run. a. True. b. False.
A: Price elasticity of supply (PES or Es) is a degree utilized in economics to expose the…
Q: 1. There is a country, which is located in the south of the Mediterranean. This country's GDP is 500…
A: The auto sector accounts for the second most extensive reference for growing CO2 emissions globally.…
Q: AD 45° AD₁ =C+I+G+NX the Pl Y₁ ct of the following on the AD curve and equilibrium output Y. Draw…
A: The aggregate demand changes with change in the government expenditure. Rise in the government…
Q: 2 Assume that needs to Calculate cach If she and she a blf C and If and If she and of the the Jane…
A: * SOLUTION :- (6)
Q: Consider the case of the following large country (all prices are measured in euros, and quantities…
A:
Q: 11.(a) Find an expression for the IS curve of the domestic economy. There is no need to show…
A: IS curve shows the goods market equilibrium. It is derived by the equilibrium of aggregate demand…
Step by step
Solved in 2 steps
- Why are firms called price takers in a perfectly competitive market? Why do different firms produce different quantities despite having the same price and MR curve in perfect competition? Explain. give graphs if neededBecause perfectly competitive firms must accept the _________________ curve (demand or supply) for its output as determined by the product's market demand and supply it cannot choose the price it chargesWhich of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm?Possible answersA) Price is greater than long-run average costB) Price is equal to long-run marginal costC) Economic profit is zeroD)The firm produces the output level at which long-run average cost is at its minimum
- How does an increase in market demand for a product in a perfectly competitive market affectthe short-run and long-run equilibrium? Show on a diagram and discuss the adjustments firms make in terms of price and quantity to reach the new equilibrium. 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.Why is a firm in a perfectly competitive market called a price taker?How does a firm in perfect competition decide its profit maximizingprice and quantity? ExplainUse Table: Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. If the market price of a tub of ice cream is $50, what quantity will Sergei produce to maximize profit?
- Consider the perfectly competitive market for tofu. Many people use tofu as a substitute for meat. Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q, P, and in the market for tofu (in comparison to the starting point) if the price of meat is increasing.A perfectly competitive firm will be interested in producing a positive output only when the price of its product exceeds its ______. a. AFCmin b. AVCmin c.MCmin d.ATCminSuppose a perfectly competitive firms demand curve is below the ATC curve. Explain the conditions under which a firm continues to produce in the short run. Based on the table above, if the competitive equilibrium price $14 a) what is the profit maximizing output for this firm? b) What is the maximum profit the company can make?
- In the long run, perfectly competitive firms are at equilibrium when: (LMC = Long-Run Marginal Cost; LAC = Long-Run Average Cost) a.P = LAC > LMC b.P = LMC = LAC. c.P = LMC > LAC d.P = MR.Assume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. (a) Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grande’s economic profit in the short run? Explain. (b) What will happen to Grande’s economic profit in the long run? Explain.Question: In a perfectly competitive market, what is true about the long - run equilibrium? Options: A) Firms earn economic profits in the long run B) Price equals marginal cost for all firms C) There are significant barriers to entry for new firms D) Firms produce at the point where marginal revenue equals marginal cost Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
