Assume a market demand curve Y(p)=3000-15p and a firm’s marginal cost is 60 (MC=60), For a monopolist, solve for the optimal quantity supplied and prevailing market price.

Q: What would happen when price ceiling is below the market price A) supply surplus B) demand shortage…

A: The price ceiling is a kind of price control and the highest price that could be charged for any…

Q: Answer the following questions based on the below diagram that shows the labour demand curve for a…

A: In the study of economics, elasticity measures the percentage change of one economic variable in…

Q: Trade was an engine for growth for the then developing countries of the 19th Century. Trade and…

A: Developing countries: A developing nation, also known as an emerging market or a less developed…

Q: Based on your answers to the previous questions, on the following graph use the purple point…

A: Given information In 2020, the price level will be 102.  In 2021, if the aggregate demand is ADA,…

Q: Consider an economy on its long-run path. The inflation is 10%. Suppose the slope of the Phillips %,…

A: The Phillips curve indicates that there is an inverse relationship between the inflation rate and…

Q: A fund is to be donated by wealthy man to provide scholarships to deserving students. The fund will…

A: In this case, compound interest is actually calculated here i.e. compound interest is actually the…

Q: Consider a health insurance market. The market has many insurers so that each insurance company…

A: Given: U(X) = X0.5 Initial wealth = $100 Gym membership = $6 which reduces going to a doctor from…

Q: Which of the following statements captures the meaning of transitivity of preferences? a. If A is…

A: Transitivity of preferences implies that the consumer is able to rank all available bundles of goods…

Q: 1. A five-year-old machine, Machine X, purchased for $100000 is not able to meet today's market…

A: Given,  Machine X : Purchased years oldPurchased for $100,000It will be used for 4 years…

Q: Based on this model, the budget deficit leads to in the level of investment and in the interest…

A: The budget is an estimate for the coming year's expenses and revenue level. The budget is made by…

Q: Write down the extensive form of the game below. For P1, strategies you see below are not the names…

A: Given,  Three Players : Player 1, Player 2 and Player 3 Player 1 has four strategies : AA, AB, BA,…

Q: The table below lists the assets and liabilities for 3 banks. Bank Assets Liabilities Boomtown Bank…

A: Net worth is the bank's assets minus the bank's liabilities.  i.e., Net worth = Bank's asset -…

Q: 1. Why is it important to study and learn the concept of globalization?

A: The term globalisation refers to the rapid increase in interdependence of the world's cultures,…

Q: 4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a…

A: In perfect competition ,  A firm will always produce where Price is equal to marginal cost.  This…

Q: kinds of functions: (a) macroeconomic function when regulating inflation and price stability through…

A: Q 2. The central bank has the responsibility to frame and implement monetary policy for country B.…

Q: A telephone company purchased a microwave radio equipment fo P6,000,000.00. Freight and installation…

A: Working note: Computation of total cost of equipment: Particular Calculation Amount Purchase…

Q: Which of the following statements best illustrates the concept of derived demand? A. When the price…

A: The derived demand refers to the demand for one good generating the demand for another good. Suppose…

Q: The overall CPI in 2019 and 2020 are 120.2 and 123.3 respectively. What was the annual inflation…

A: CPI in 2019 = 120.2 CPI in 2020 = 123.3 Annual rate of inflation  = (CPI in 2020 / CPI in 2019) - 1…

Q: EXERCISE 1 Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford…

A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…

Q: 2. Assume a firm has a production function given by Q = 4K + L, and faces w = $7 and r = $10. What…

A: Given information Production function Q=4K+L W=$7 and r=$10

Q: 3. Kalle has already saved 18 000 euros in his investment account. Suppose he needs to have 32 000…

A:

Q: Accusoft Systems is offering small business owners a software package that keeps track of many…

A: The term "payback time" refers to the number of years required to recover the initial monetary…

Q: d. $20

A: In the long run competitive equilibrium will be  Price P= Marginal cost= Marginal revenue= minimum…

Q: Suppose that the equilibrium real federal funds rate is 2.5% and the target inflation rate is 2.5%.…

A: Taylor rule: R = r* + π + 0.5*(π - π*) + 0.5* (Output gap) where R = nominal federal funds rate  r*…

Q: Assume we have a small open economy. The government budget is in balance (T-G=0) and Savings equals…

A: In this case, small open economy is considered here. In the open economy, there are many types of…

Q: Axon pharma specializes and is the market leader in vaccines. They decide to Vertical merger…

A: A merger is a process that combines two or more businesses into one entity. In general, smaller or…

Q: Suppose a businessman is considering the purchase of a business machine that is expected to be…

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

Q: The terms spillover or externality refer to__ A) black-market economic activity. B) the impact on…

A: The phenomena in which one party's activities have unexpected effects for a third party who is not…

Q: A natural monopoly exists when    Question 3 options:   a)  the product is sold in its natural…

A: Natural Monopoly: A natural monopoly exists when it is most efficient to have single firm operating…

Q: When our test statistic falls inside the rejection region, we can Reject alternate hypothesis None…

A: When the test statistics falls under the rejection region then the null hypothesis gets rejected .…

Q: Suppose that a firm has a revenue function given as R(x, y) = px + qy and a total cost function…

A: Given  Revenue function: R(x,y)=ρx+qy           ....(1) Cost function: C(x,y)=αx2+βy2…

Q: AC: g 4. Suppose a firm has the cost function TC(q) = 5Q³ w0.5 p0.5 What is the marginal and average…

A: Average Cost is the per unit cost of the good produce. It tells us how much each good is costing.…

Q: Explain how adverse selection leads to market failure. Give a hypothetical example/situation.

A: Moral hazard arises when one party is willing to take on more risk in order to receive more rewards,…

Q: The following figure shows the effect of a price ceiling in the market for yams. The market was…

A: Consumer surplus is the difference between the price that the consumer is willing to pay and the…

Q: Consider the signaling game below. Does the game have a perfect Bayesian equilibriu which all sender…

A: In the above game - There are two players  - Senders & Receivers  Strategy Set of Senders : { L…

Q: The idea of "economic rent" can be applied to resources other than land. What is economic rent? O…

A: Economic Rent is defined as the payment made to the owner of factor which is in excess of the…

Q: . Suppose interest rates are zero and the consumer's utility is u(c_{1}, c_{2}) = (c_{1}, c_{2})…

A: Inter temporal Utility function : U = c1*c2 Where , c1 = consumption in period 1  c2 = consumption…

Q: Table 15-4 Year 2022 2023 Potential Real GDP $18.1 trillion 18.4 trillion Real GDP $18.1 trillion…

A: The amount of GDP that an economy could produce if its current levels of labour, physical capital,…

Q: 2. Pam is rich and at this high income level, her demand for good X is independent of income and…

A: CV, or compensating variation, is the change in income that returns the consumer to the original…

Q: 13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price…

A: Lerner index measures the monopoly power. Following is the formula of the Lerner index (P-MC) / P =…

Q: Discuss income inequality, measurement and causes.

A: The economy's uneven distribution of wealth and income is the root cause of the inequality issue.…

Q: According to Rushkoff (2009), the philosophy of corporatism is:    A. To suppress lateral…

A: Corporatism was originally defined as a political ideology which segregates the society in to…

Q: How does an increase in domestic income affect demand for imports how does a decrease in real…

A: Income refers to the money that an individual earn from his employment.

Q: Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real…

A: Quantity theory of money shows the relationship between the velocity , money supply , price level…

Q: 2. Sam's is interested in two goods, X and Y. His indirect utility function is U* = M px-0.7…

A: Consumer surplus is the benefit that a consumer receives if he pays a price that is less than the…

Q: The Phillips curve in Lowland takes the form of π = 0.04 – 0.5 (u – 0.05), where π is the actual…

A: The Phillips curve shows that unemployment and inflation have a consistent negative relationship.…

Q: P3 PA Ps QA QB Qс What would be the Equilibrium Price and the Equilibrium Quantity if the Demand for…

A: Equilibrium is where demand curve intersects supply curve  The increase in demand means the…

Q: A natural monopoly arises when the firm’s technology has economies of scale large enough for it to…

A: A natural monopoly is a form of monopolisation that appears to exist because of elevated start-up…

Q: Which of the following correctly predicts the Equilibrium Price and the Equilibrium Quantity in the…

A: A good's supply is the quantity produced and made available for sale by producers at various prices…

Q: Enchanted Kingdom (EK) has higher demand during Christmas (D₁= P1 = 20 -0.02Q1) than in other months…

A: The following information is given in the task: The inverse demand function during festive season…