Charlies's lawn-mowing service is a profit-maximizing.competitive firm. Bob mous lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Charlies's short-run decision regarding shutdown and his long-run decision regarding exit?
Q: Neuratility of money means that an increase in the quantity of money All the above Does not affect…
A: Neutrality of money explains the neutral nature of money.
Q: . The total utility of 3 units of good X is 22 and the total utility of 5 units of good X is 28. The…
A: The concept of utility is related to deriving satisfaction. Marginal utility is the satisfaction…
Q: 2. What is the significance of understanding the economic role of financial institutions, as well as…
A: Financial institutions nourish commercial clients and consumers with a wide range of services and…
Q: Which of the following production function exhibits Diseconomies of Scale? Production function where…
A: If an increase in inputs by λ led to an increase in output by more than λ, the production function…
Q: Suppose Amy is choosing how to allocate her portfolio between two asset classes: risk-free…
A: An individual has two options of resource classes to dispense portfolio-hazardous gathering of…
Q: the technology for producing a good enables one firm to meet the entire market demand at a lower…
A: 7) In a perfect competition market structure, there are a large number of buyers and sellers. So…
Q: Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive…
A: Monopolistic competition is the market where seller sale differentiated products and they have…
Q: A machine having a certain first cost has a life of 10 years and a salvage value of 6.6% of the…
A:
Q: If period 1 is the base year, the bundle price of goods in period 1 is $200, and the bundle price of…
A: Price index: - it is the measure of change in the price level, it measures the change in the price…
Q: Pillar Co makes decorative candles which are made from a special organic blend of beeswax, botanical…
A: Monopoly firm can choose the pricing strategy from uniform price and discriminatory price. Firm can…
Q: What are the factors affecting the demand for gasoline?
A: Gasoline is marketed established on octane statuses in three primary phases of gasoline: Regular…
Q: Which factor of production is almost never included in a firm's fixed costs? Land Labor Capital All…
A: Fixed refers to the cost which does not change with change in the output level. The variable cost…
Q: Consider the model of competitive insurance discussed in lectures (Topic 6.7). Peter is a risk…
A: In a competitive insurance market the fair premium price is equal to the expected value of the loss…
Q: Q2. The production function is y = LK¹ and (p = $10,w = $20,r = $15). (1) Show whether the…
A: Optimal input bundle is where Marginal product of labor (MPL) / Marginal product of capital (MPK) =…
Q: Mcq's 8) A few firms dominating an industry is an example of a) oligopoly…
A: Oligopoly: Oligopoly happens when occasional firms dominate the market for a service or good. This…
Q: Three college students consider the option of forming a lawn care and landscaping business during…
A: Answer
Q: A change from Point B to Point C represents a(n): E Price D Quantity O decrease in supply. O…
A: Here, the given graph shows three supply curves, which represents different points and different…
Q: You live in Canada, and purchased a car manufactured in Japan this year from a dealer in Canada. The…
A: Gross domestic product is the total market value of goods and services produced domestically during…
Q: Assume you are the Minister of Finance and Economic Planning for Ghana, in charge of Fiscal Policy.…
A: Let us firstly define the data provided - Saving rate = 20% , therefore , Consumption rate /MPC = 1…
Q: Consider a consumer with preferences over two goods, r₁ and 22, that can be represented by the…
A: Optimal consumption bundle is when MUx1 / MUx2 = Px1 / Px2Where, MUx1 = Marginal utility from good…
Q: retailer of mobile phones in Australia that works 250 days in a year. The manager would like you to…
A: Economic order quantity (EOQ) is a computation companies perform that shows their ideal order size,…
Q: 1. A chemical company produces sodium bisulfate in 100-pound bags. Demand for the product is 40…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Producer sale the goods at below the cost to drive out his competitors from the market is called…
A: The producer surplus is the distinction between the price got for an item and the minimal expense to…
Q: Q5A and B are sharing a room with a TV and a DVD player. DVD's can be rented for the weekend for a…
A: DVD's can be rented for the weekend for a cost of $5. They would each get $4 worth of enjoyment from…
Q: The table below shows the total population, GDP per capita at current prices and according to fixed…
A:
Q: a. Find total revenues and marginal r b. What quantity of CDs would maximize profit? V 2.)…
A: Given The market price for lawn-mowing P=$27 Bob mows 10 lawns per day His daily cost TC = $280…
Q: What are Nash Equilibria in the following game? Select all that apply. Pizza Jazz 7 meats Seafood…
A: Nash equilibrium is a set of strategies which leave no incentive for players to deviate from their…
Q: In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If…
A: Nash Equilibrium In economics, Nash Equilibrium is a notion for finding a solution to a game.…
Q: The following table shows income (Y) and consumption (C): Y C Calculate: 100 105 125 160 I. Marginal…
A: Y C 100 105 125 110 160 125 200 140 Formula's Used: MPC = ∆C∆Y MPS = ∆S∆Y Y = C +…
Q: Why in Pure Specific Factors only Owner of A benefits but in Mixed both owners of K and owners of A…
A: The specific factor model assumes that production factors do not migrate from one sector to the…
Q: A machine purchased 3 years ago for $140,000 is now too slow to meet growing demand. The machine can…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: major opportunities and challenges currently facing intra-African trade. Evaluate some of the…
A: Trade Trade refers to the Import and export of goods and services from one country to another…
Q: 1. Competitive market, Practice Question Wheat farmer Joe has the cost function of C(q) = 160,000 +…
A: A cost function is a formula that may be used to provide an accurate forecast of the costs that will…
Q: Pillar Co makes decorative candles which are made from a special organic blend of beeswax, botanical…
A: The total cost is the expenditure that is incurred in the production of goods and services. The…
Q: Is it ethical for state and city governments to entice specific businesses to relocate their…
A: In the field of the economics, the concept of ethical decision-making refers to a decision-making…
Q: On the following graph, use the blue line (circle symbol) to plot Yakov's production possibilities…
A: Absolute advantage refers to a situation where a country produce best quality of the commodity at a…
Q: Kevin invested part of his $5000 bonus in a certificate of deposit (CD) that paid 2% annual simple…
A: Mutual funds are professionally managed investment programmes that are sponsored by shareholders and…
Q: Consider a Solow model with no technological progress or population growth, s=0.5, -0.05, y = √k,…
A: At steady state, investment is equal to depreciation which implies rate of change of capital per…
Q: Due to an increase in the price of a competitor's product, the demand for a firm's product increases…
A: Marginal cost mirrors the additional cost of assembling one extra thing. Accordingly, it…
Q: In developed countries main reason for unemployment is Lack of supply O Excess demand O Lack of raw…
A: Unemployment is defined as a situation in which individuals are actively looking for a job but are…
Q: Suppose there are two firms in the market, Firm A and Firm B. The total market demand is given by…
A: Cartel is an agreement between firms to maximise joint profit.
Q: Defend or Refute. “John Maynard Keynes rejected the theory of classical economics that there will be…
A: In the classical economics, Adam Smith proposed the idea of invisible hand meaning that any…
Q: A loan for P50,000 is to be paid in 3 years in the amount of P65,000. What is the effective rate of…
A: The rate that is being on a financial product or loan restated from the nominal rate of interest is…
Q: What are Nash Equilibria in the following game? Select all that apply. Pizza Jazz 7 meats Seafood…
A: We have 3×3 simultaneous move game between two players.
Q: Consider Robinson Crusoe who lives alone on the island. He can produce two good eggs (good X) and…
A: Introduction Robinson crusoe lives on an island. He can produce two goods: good X and good Y. Good X…
Q: In April 2021, there was shortage of ABC cement in the country which led to a rise in the price of…
A: A price ceiling is the commanded most extreme sum a merchant is permitted to charge for an item or…
Q: If firms were controlled by workers, would they likely hire more or fewer workers? Why?
A: Introduction The topic is related to wages of the workers in firm or a company.
Q: 1.11 If desired investment exceeds actual investment, then... a) The economy is in a recession. b)…
A: As a rule, planned investment is how much trading companies intend to embrace during a year. Real…
Q: What is the accumulated amount after three years of P6,500 invested at the rate of 12% per year…
A: Semi-annual compounded interest refers to the two times compounded interest in a year.
Q: QUESTION 24 Consider the following provision of public good problem: Citizen 1 initial budget: w1 =…
A: Given; Initial budget of citizen 1; w1=$80000Initial budget of citizen 2; w2=$60000Cost of public…
Step by step
Solved in 4 steps
- 2. Bob’s lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob’s short-run decision regarding shutdown and his long-run decision regarding exit?Bob’s lawn-mowing service is a profit-maximizing,competitive firm. Bob mows lawns for $27 each. Histotal cost each day is $280, of which $30 is a fixedcost. He mows 10 lawns a day. What can you sayabout Bob’s short-run decision regarding shutdownand his long-run decision regarding exit?When a perfectly competitive firm increases thequantity it produces and sells by 10 percent, itsmarginal revenue _________ and its total revenuerises by _________.a. falls; less than 10 percentb. falls; exactly 10 percentc. stays the same; less than 10 percentd. stays the same; exactly 10 percent
- Crabby Bob’s is a seafood restaurant in a beach resort in Delaware. Crabby Bob’s earns a profit each month from May through September, suffers losses in October, November, and April but remains open, and remains closed from December through March. Given that the restaurant market in this town is perfectly competitive, how would you explain Crabby Bob’s decisions?Question 3 Mehmood’s lawn-mowing service is a profit-maximizing, competitive firm. Mehmood mows lawns for Rs.270 each. His total cost each day is Rs.2800, of which Rs.300 is a fixed cost. He mows 10 lawns a day. What can you say about Mehmood’s short-run decision regarding shutdown and his long-run decision regarding exit?Explain the fact that the short-run supply curve for a price taking firm is that segment of its marginal cost (MC) curvethat lies above the average variable cost curve. Show and explain clearly shut-down and break-even points on your diagram.
- (c) Should a firm shut down and why if its revenue is R=$ 1, 000. Its variable cost VC=$ 500 and its sunk fixed cost is F= $ 600. Its variable cost VC=$ 1, 500 and its sunk fixed cost is F= $ 500.Galaxy is a firm in perfectly competitive market. Galaxy currently produces and sells 400 units of toys. Its total revenue is $4,000; the marginal cost of producing the last toy is $12; and the average total cost of producing the the last toy is $8. Is the Galaxy maximizing its profit, or should it increase or decrease output in order to increase its profit? Explain to get full credit.Draw and describe a diagram representing the cost curves – MC, AC, and AVC – for a profit-maximizing firm under perfect competition. Show U-shaped AC and AVC curves. Label the breakeven and shut down prices. Also, show a price between the breakeven and shut down prices and explain how the firm decides on its profit-maximizing/loss-minimizing output level at that price and show how the amount of profit or loss can be shown in the diagram. 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.
- explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits in the short run but not in the long run?The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost Average Total Cost Marginal Cost Total Cost 0 / / / $110 1 $ $ $ 140 2 160 3 190 4 224 5 280 6 342 7 458 a. Complete above the table. b. What is the shutdown price? Shutdown price: $ c. If the market price of the product is $56, what quantity will Marshall’s Meats produce? What will be its profit or loss?Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving services. The following tables set out Lisa's costs Quantity(lawn per hour) Total Cost(dollars per lawn) 0 $30 1 $40 2 $55 3 $75 4 $100 5 $130 6 $165 A. If the market price is $30 per lawn, How many lawns per hour does Lisa's LLC now? B. If the market price is 30 per lawn, What is Lisa"s profit in the short run? C. if the market price falls to $20 per lawn, how many lawns per hour does Lisa's LLC now? D. if the market price falls to $20 per lawn, what is Lisa's profit in the short run? E. At What market price will Lisa shut down?