Q: How scarcity helps in country growth?
A: Scarcity is known as the constrained supply of economic resources. Because of the restricted…
Q: Which of the following is a reason for using independently pooled cross sections? O a. To increase…
A: Pooled data is a mixture of cross-sectional and time series data. For example, the collection of…
Q: Stock A has a price of $60 per share and you own 360 shares. Stock B has a price of $250 per share…
A: Given information: Stock A has a price of $60 per share and you own 360 shares. => Total value of…
Q: Husin received his federal education loan of $3,000 for current semester on August 31. He deposited…
A: compound interest rate is the interest rate which is incurred on the initial amount and the interest…
Q: Equilibrium condition: Y=C+I+G+NX a. Solve for equilibrium real income. b. If autonomous real…
A: Given:- S=-40+0.10*Yd IM=20+0.20*Yd T=60+0.25*Y I=150 G=200 X=50 Dear Student as you have posted…
Q: Direction: Complete the table. Enumerate accordingly the 7 goals of Laudato Si' Enumerate…
A: Laudato Si' is the encyclical of the Pope francis. In this the pope criticizes about the…
Q: Which goods are supposed to be included in the CPI? a. All goods and services produced in the…
A: Consumer price index is a type of price index that takes into account the cost of a typical basket…
Q: Which of the follow are the main jobs of the Federal Reserve? (Check all that apply) A. Conduct…
A: The Federal Reserve frequently alluded to as the Central bank or "the Federal Reserve," is the…
Q: Is the following game zero-sum? R1 R2 C1 C2 25, 250, 5 5,0 5,5 nonzero-sum zero-sum
A: Zero sum game is when one player can get the payoff only when the another player loses it. So, The…
Q: A vegetable fiber is traded in the US, has the following domestic supply and demand for various…
A: Price elasticity of demand shows the change in quantity demanded due to change in price. The demand…
Q: (b) Briefly explain the following terms with regards to Economical evaluation of environmental goods…
A: Economic evaluation: The systematic identification, measurement, and appraisal of the inputs and…
Q: Assignment #1 A large wood products company is negotiating a contract to sell plywood overseas. The…
A: Firms will continue to increase their production until it reaches their optimum amount. The optimum…
Q: Suppose a bank has $400,000 in deposits and a required reserve ratio of 25 percent. Then excess…
A: Reserve are the part of deposit that is kep by the bank. Required reserve is the product of Reserve…
Q: The industry in the figure below consists of many firms with identical cost structures, and the…
A: Demand: It refers to goods and services that are consumed by the people. More demand leads to an…
Q: Consider an aggregate production function of the form Y= K⅓(AL)⅔ Assume that the labor force is a…
A: GDP per capita is calculated by dividing the total gross value added by all producers who are…
Q: Dr. Tim bought a car for $11,600 in the year 2000. Suppose instead, he invested that money at 8%.…
A: Money Spent on car = 11600 Interest rate = 8% Inflation rate = 3% To find the value of invested…
Q: 17. Use the market for loanable funds shown in the accompanying diagram to explain what happens to…
A: Money that is accessible for borrowing is referred to as loanable money. Savings from households…
Q: In 20 years, P1,000,000 is acquired from an investment paying 12% compounded continuously, how much…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Required information Determine the amount of any depreciation recapture (DR), capital gain (CG), or…
A: The depreciation method utilized in the United States for tax reasons is known as the MACRS, or…
Q: The goal of product differentiation and advertising in monopolistic competition is to make:…
A: Monopolistic competition: - monopolistic market formation is a former in which there is a large…
Q: Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factory produces office…
A: The point at which a company's revenues and costs are equal is known as the break-even point. The…
Q: he residents of country P consume only peaches and pecans. The table below shows the prices and…
A: Given consumption basket = 10 bushels of peaches and 15 bushels of pecans Now, with 2000 is the base…
Q: The Lorenz curve of income distribution in North is f(x) = 0.1x4 +0.4x³ +0.3x² +0.2x The Gini…
A: In order to determine the average income of a population, economists use the Gini coefficient ,…
Q: Peter's TV Supplies is considering a merger with Jan's Radio Supply Stores. Peter's total operating…
A: [a] Average cost of production = [Total cost/ total number of output sold] For Peter =…
Q: D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item,…
A: Producer surplus is described as the difference between the amount the producer is willing to supply…
Q: Use the following information to answer the two questions below. State of Prob, of the the economy…
A: * SOLUTION :- Given that ,
Q: Which of these is a limitation of the infant industry argument? Most industries are not viable on…
A: Infant industries are usually such industries that are new and they have not start developing and…
Q: 5. Suppose Ux₁X₂ and the budget constraint is given as 10x₁ + 2x₂ = 120, solve for xi and x₂, and…
A: Given information: U = x1 x2 -------> Utility function. 10x1 + 2x2 = 120 --------> Budget…
Q: Higher inflation makes relative prices Select one: O a. less variable, making it more likely that…
A: Inflation refers to rise in general price level of goods and services. Due to inflation, the…
Q: The Tax which would be most difficult to shift to others would be Select one: Personal income…
A: In case of taxes, there is no direct advantage in exchange for paying taxes; rather, they are paid…
Q: The table above shows the worker hours required to produce two different goods in two countries.…
A: Comparative advantage arises when the country produces good at lower opportunity cost than other…
Q: 7. Draw indifference curves for two goods r and y, where x is a "neutral" good. Specify each axis,…
A: Neutral goods: These goods are neutral in terms of utility. Which means that if you change quantity…
Q: XYZ ltd buys 75000 glass bottles per year.Price of each bottles in Rs.0.90 . ost of purchase is…
A: The appropriate order quantity for your company to place is known as the EOQ, or Economic Order…
Q: For the adverse selection model by George Akerlof, for a given car, if the seller values the car at…
A: Adverse selection is a market mechanism that can lead to a market collapse. Akerlof's paper shows…
Q: Assume the aggregate demand and supply for a good are given by the following expressions: Q(p) =…
A: The equilibrium level must be achieved by equating the demand and supply curves. The imposition of…
Q: Answer it correctly please. I ll rate accordingly. My last attempt. Typed answer only. Do it fast…
A: To determine which option is better we will compute the weighted average cost of each option. The…
Q: Fill in each statement with the appropriate capital investment analysis method: Payback, ARR, NPV,…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you.…
Q: Consider the competitive market for sports jackets. The following graph shows the marginal cost…
A: Cost curves represent the various levels of costs paid throughout the production of goods. As the…
Q: The Current Account DOES NOT include: a. Portfolio Investment b. Net income investments in other…
A: The current account is the most significant account in the economy and it is a part of the balance…
Q: Suppose in 2000, Company X hires Designer Y to design a new car. Company X pays Y $1,000 as the…
A: Gross Domestic Product (GDP) refers to the sum of the market values of all final goods and services…
Q: Based on the graph above, how much abatement should be undertaken? Write the value and make sure to…
A: Marginal abatement costs are the cost of removing each unit of pollution, marginal damages are the…
Q: Lisa's optimal monetary balance has decreased. This could have been caused by Group of answer…
A: Money is kept in banks by the people as it is most safest form of store of value and can be…
Q: By definition, the Isocost lines represent: Select one: O a. the combinations of inputs that have…
A: In order to produce goods and services, different factors of production are required. These include…
Q: Question E3 Briefly explain how the appropriate tax moves the market to the social equilibrium.
A: Externality is the external cost or benefit that is borne by the third party. Positive externality…
Q: Assume the country of Ballear is running a greater budget deficit and is forced to borrow large…
A: The exchange rate refers to the rate at which one country's currency is exchanged for the other…
Q: An increase in the interest rate will Group of answer choices increase the optimal money balance.…
A: The interest rate is the amount charged by the lender in addition to the principal amount. Taking…
Q: Solve the following using the Lagrange multiplier method. iv. Max KL s.t. 4K+2L=20
A: Optimal input demand : The optimal input demand bundle is such that at that bundle the consumer’s…
Q: Most health-care spending is on hospitals and professional services. Describe the crux of the issue
A: The phrase "health care economics" refers to the many interrelated elements that interact to affect…
Q: What is the (pure-strategy) Nash equilibrium? O There is no (pure-strategy) Nash equilibrium. O (P1,…
A: The Nash equilibrium refers to the best course of action or strategy provided the strategy of rival…
Q: 1. Examples of the principle of diminishing marginal utility include all of the following EXCEPT: A.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Step by step
Solved in 2 steps with 1 images
- Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?
- In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology requited having a wile matting to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)
- The accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this figure to answer the questions that follow. a. What price will an unregulated monopoly charge?$ b. What quantity will an unregulated monopoly produce?unitsc. How many units will a monopoly produce when the regulated price is $10 per unit?unitsd. Determine the quantity demanded and the amount produced at the regulated price of $10 per unit. Is there a shortage or a surplus?Quantity demanded: units Amount produced: unitsThere is: (Click to select) a shortage neither a shortage nor a surplus a surplus .e. Determine the deadweight loss to society (if any) when the regulated price is $10 per unit.$ f. Determine the regulated price that maximizes social welfare. Is there a shortage or a surplus at this price?$ There is (Click to select) neither a surplus nor a shortage a surplus a shortage at this price.The diagram below shows a monopolist’s marginal cost scheduleand the demand curve. Find and depict the following items within the diagram and briefly explainhow you found them: a) The efficient (i.e., total surplus maximising) quantity. b) The monopolist’s profit maximising quantity. c) The monopolist’s profit maximising price. d) The monopolist’s optimal profit. e) The deadweight loss.A monopolist faces a demand curve given by q = 32 − 0.5p. Its costs are given by 0.5q2 + 100. (a) What is the monopolist’s profit maximizing choice of output? At what price does it sell its product? (b) Draw a graph that illustrates the monopolist’s choices. (c) If this were a competitive market, what would be the equilibrium price and quan- tity? (d) If the monopolist were forced to sell its output at the price that would arise in the competitive market, would it still be able to make a profit?
- How does a monopolist decide how much to produce to maximize its profit? Explain. Please answer step by step. if posssible use graph.Consider the relationship between monopoly pricingand price elasticity of demand.a. Explain \\•hy a monopolist will never produce aquantity a t which the demand curve is inelastic.(Hint: If demand is inelastic and the firm raisesits price, what happens to total revenue and totalcosts?)b. Draw a diagram for a monopolist,. preciselylabeling the portion of the demand curve thatis inelastic. (Hint: The answer is related to themarginal-revenue curve.)c. On your diagram, show the quantity and pricethat maximize total revenue.A monopolist decision about how many unitys to sell is it macro micro decison? explain why
