Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes its positive profit in the short-run, its average total cost (ATC) and marginal cost (MC) are most likely as Group of answer choices ATC=6 and MC=4 ATC=4 and MC=6 ATC=4 and MC=4 ATC=6 and MC
Q: The government sets a minimum price for prof. Ernst's brussel sprouts. This i Group of answer…
A: Price support is a policy mechanism employed by the government to establish a minimum price for a…
Q: what is the answer to MR= MC
A: Marginal Revenue (MR) is the additional revenue that a firm receives from selling one more unit of…
Q: In the field of health economics, there has been mixed evidence of whether primary care and…
A: Health economics is significant in current times because it emphasizes how and why individuals may…
Q: (a) Find the aggregate willingness to pay function for global greenhouse gas seques- tration. Graph…
A: We will do all three calculations list is below:(a) The aggregate willingness to pay function for…
Q: $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is…
A: The Internal Rate of Return (IRR) is a metric used in financial analysis to estimate the…
Q: Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on…
A: To find the Present worth , Annual Worth & Internal Rate of Return we first compute the After…
Q: Identify and describe the opportunity cost of an activity that you enjoy. Remember to consider…
A: Reaching a decision involves evaluating the pros and cons of various alternatives with the objective…
Q: 1. Do you think that the US would benefit more from a free trade agreement with Nigeria or a free…
A: Both a free trade agreement with Nigeria and a free trade agreement with the United Kingdom can…
Q: Geoffrey, Suzanne, Jared, and Jessica are college roommates. They're trying to decide where the four…
A: The cost-benefit analysis includes explaining the potential costs and benefits of regulation in…
Q: Zack and Cody live in a household together. Can the household maximise utlity of both members?…
A: Utility theory sprang to prominence as a result of the pioneering work of Jeremy Bentham, Daniel…
Q: From 2016 to 2026, the U.S. Bureau of Labor Statistics expects that there will be a fall in demand…
A: Labor statistics refer to the collection, analysis, and presentation of data related to various…
Q: 2. Theory of the firm A firm has a production function q= f(k,l) = (k0.25 +10.25)2, w is the wage,…
A: A production function is a mathematical representation that shows the relationship between inputs…
Q: Consider the economy of Cocoland, where citizens consume only coconuts. Assume that coconuts are…
A: When tax rate decreases as the amount subject to taxation increases, it is regressive taxation.When…
Q: You are selling extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball…
A: Now analysing the willingness to pay table , If the price is greater than $500 then there is no…
Q: Consider a utility function given by U (c1,c2) = 4c1 +2c2 involving young and old consumption for a…
A: Given utility function:-U(c1,c2)=4c1+2c2To determine:-i) Type of preference with IC graph=?ii)…
Q: Consider the national income model below Y – C(Y) – I (i) — G₁ = 0 = 0 kY + L(i) − Mso ac 0< < 1; ΟΥ…
A: National income models can be used to explore characteristics impacting economic expansion,…
Q: 0 O(08.0.X O (1A, 1X 0 O (OB.LY) 4,0,0 A B 2,2,2 3 X Y X Which of the following is not a subgame…
A: Since you have posted multiple MCQs from different topics, we will be solving only the first…
Q: The demand function for a particular item is given by p = D(x) = √163 - 8x dollars. Find the level…
A: The measure of the sensitivity of the quantity (Q) demanded of a product to changes in its price (P)…
Q: III. Demand and Supply Together Table 3: Demand and Supply Together Qd 10 15 P $4.00 $3.50 $3.00…
A: A market is said to be in equilibrium, if at the given market price, the quantity demanded is equal…
Q: A project is being considered that has a first cost of $12,500, creates $5000 in annual cost…
A: Making informed economical decisions involves assessing the potential advantages and expenses of…
Q: "Booze ban risks trade deal EU liquor lobbyists not happy about skewing of balance in SA's biggest…
A: A statistical record of a country's economic interactions with other countries and reflects the…
Q: An assembly operation at a software company now requires $100,000 per year in labor costs. A robot…
A: Capitalized cost refers to the cost that is assed to the cost for a fixed asset in a balance sheet…
Q: Firm Aleph operates in a perfectly competitive market in a constant-cost industry and is earning…
A: A perfectly competitive market is a market structure characterized by a large number of buyers and…
Q: Apply the cost-volume- utility model for the graphical and mathematical definition of the…
A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…
Q: Economics Can someone help me understand how (suv 1) was = 0.15 and (SUV 2)= 0.86 Two sport utility…
A: Utility Analysis:Utility analysis is a quantitative approach used in economics and decision theory…
Q: A. Carver Debbie A Ocor Bery Carver Deb Eame $90,000 $2.000 Who has the median income in this group?…
A: The Median can be defined as the statistical measure that represents the value in a set of data when…
Q: 1. What were the real reasons that coca was taken out of Coca Cola? 2. How then could you still…
A: - The primary reason that coca was taken out of Coca-Cola was due to concerns regarding the presence…
Q: The government sets a minimum price for prof. Ernst's brussel sprouts. This is called a Group of…
A: The price restrictions make guarantee that market prices are not artificially raised or lowered. To…
Q: 5. Market Power A monopolist has a cost function C(q) = 2q and faces a demand curve p = 10-q. a.…
A: Deadweight loss refers to the economic inefficiency that occurs when the allocation of resources in…
Q: Question 2 Describe FOUR (4) instruments that are used in the implementation of monetary policy.
A: Monetary policy is the set of actions taken by a country's central bank to influence the amount of…
Q: The following is information for the economy of Tandor, where taxes are wholly autonomous: C = 50+…
A: The level of income in an economy where the total spending (aggregate expenditure) is equal to the…
Q: Back to Assignment Attempts 3. Adjusting for inflation Keep the Highest/2 Consider golfers who led…
A: Present value is the sum of money that should be invested to accomplish a particular future goal.…
Q: Question 2. The following data show the number of rental cars in service for three rental car…
A: The data points in a time-series graph are organised in a grid to visualise time-series data. The…
Q: i. ii. iii. A. A Nash equilibrium is a strategy profile such that every player's strategy is the…
A: Nash Equilibrium:Nash equilibrium is a concept in game theory that describes a state of strategic…
Q: A FATHER WISHES TO PROVIDE P4,000.00 FOR HIS SON ON HIS 21ST BIRTHDAY. HOW MUCH SHOULD HE DEPOSIT…
A: Given:The amount a father provides to his son on his 21st birthday is = P4,000The rate of interest…
Q: Chapter review questions QUESTION 1 In chapter 1 and 2, we modeled growth in an economy by a growing…
A: There are two periods : Young & Old Here we represent , Young period by t and old period as…
Q: the assessment on the political, economic, and social risks of Malaysia?
A: Risk can be defined as the possibility or likelihood of a circumstance or situation resulting in…
Q: The table provides some data on real GDP and the population of Iberia in 2019 and 2020 If the growth…
A: The real GDP is adjusted for the inflation.Real GDP per person is calculated by divided the Real GDP…
Q: By considering situation below Option 1: Invest RM1000 and received RM110 monthly for 10 months…
A: Present worth analysis, also known as present value analysis or discounted cash flow analysis, is a…
Q: 1. The film elaborates and mocks ideological justifications for capitalism. What were some of the…
A: Capitalism, as an economic system, has been praised for various motives via its proponents.
Q: The sum of the probabilities for all the experimental outcomes in a probability distribution must…
A: A probability distribution is a mathematical representation that defines the likelihood of various…
Q: in your own personal life, what are some fixed and variable costs you have?
A: Since you have asked a personal opinion-based question, we can only answer it in a generalized…
Q: The table below shows cost and revenue information for Choco Lovers, a purely competitive firm…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: Year 0 123456 2 5 E - $90 20 20 20 20 20 20 F - $110 35 35 35 35 0 0 G - $100 0 10 20 30 40 50 H -…
A: Payback period refers to the length of time required for an investment to generate sufficient cash…
Q: Suppose that the price of semiconductor chips used to make laptop computers falls. On the other…
A: Market demand and Supply: In the market for a product, we have the demand and the supply curves. And…
Q: VERTICAL AXIS The aggregate HORIZONTAL AXIS AS AD curve shows the quantity of goods and services…
A: Aggregate demand (AD) is the total amount spent on all the goods and services in the economy and…
Q: b) What rent is the firm willing to pay at X=2? c) Suppose commuting costs increase from $1 to $2…
A: Market price : The market price refers to the price at which a product or service is…
Q: What has been the average annual growth rate of U.S. real GDP per person over the 120 years from…
A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…
Q: Role of Central Banks and Moral Hazards Central banks have injected moral hazard into global…
A: The statement holds that central banks have moral risks in global markets. This shows that actions…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Suppose that the firm operates in a perfectly competitive market. The market price of his product is$10. The firm estimates its cost of production with the following cost function: TC=10q-4q2+q3 A. What level of out put should the firm produce to maximize its profit? B. Determine the level of profit at equilibrium. C. What minimum price is required by the firm to stay in the market?Suppose that the firm operates in a perfectly competitive market. The market price of his product is $4. The firm estimates its cost of production with the following cost function: TC=50+20q-5q2+0.33q3 a. What level of output should the firm produce to maximize its profit? b. Determine the level of profit at equilibrium. c. What minimum price is required by the firm to stay in the market?Q17 Assume that the cannabis firm called Aphria Inc. purchases resources a and b under perfectly competitive conditions and combines these resources to produce marijuana. Assume marijuana is sold in a perfectly competitive market. The MPs of a and b are 12 and 6, respectively, and the prices of a and b are $6 and $3, respectively. If profit-maximizing equilibrium exists, the price of marijuana will be Multiple Choice $0.50. $2. $6.67. $5. $1.
- 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 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. If there were 20 firms in this market, the short-run equilibrium price of titanium would be $_______ per pound. At that price, firms in this…Consider a firm that operates in a market that competes aggressively in prices. Due to the high fixed cost of obtaining the technology associated with entering this market, only a limited number of other firms exist. Furthermore, over 70 percent of the products sold in this market are protected by patents for the next eight years. Does this industry conform to an economist’s definition of a perfectly competitive market?A firm is a perfectly competitive producer and sells two goods G1 and G2 at $1600 and $1200,respectively. The total cost of producing these goods is given by"image attached"where ?1 and ?2 are denoted the output levels of G1 and G2, respectively. Find the maximum profitand values of ?1 and ?2 at which this is achieved.
- Compute the equilibrium prices, quantities, and profits for both firms. Consider now the first stage.Assume the market for tortillas is perfectly competitive. The market supply and demand curves for tortillas are given as follows: Supply curve: P = 5Q Demand curve: P = 120 - 10Q The short run marginal cost curve for a typical tortilla factory is: MC = 20q Assuming all tortilla factories are identical, calculate the following: Equilibrium price for tortillas: __1__ Profit maximizing short run equilibrium level of output for a tortilla factory: __2__ Given profit maximizing output as above, a tortilla factory is: __3__ Total number of tortilla factories: __4__ Producer surplus of a tortilla factory: __5__In a purely competitive market at its long-run equilibrium, which of the following is not true? a The marginal benefit of the last unit of the product equals the marginal cost of producing that unit. b The maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit. c Price equals marginal cost, and they are equal to the lowest attainable average cost of production. d The combined amount of consumer and producer surpluses is at its minimum possible.
- Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Assuming that the firm operates in a perfectly competitive market, supply the missing values in the table above. You may use a spreadsheet program to compute the values but must provide a step-by-step…Consider the 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 (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. 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.Consider the 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 (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this industry would…