Q: Use the data on the chart for a monopolist. At its profit-maximizing output, this firm's price will…
A: We know that the monopolist profit maximization output condition is marginal revenue is equal to…
Q: Consider the following picture. c' A B E F C Suppose that the government changes government…
A:
Q: Compute the total cost per year of the following pair of expenses. Then complete the sentence: On an…
A: Given; Money spent on lottery tickets every week= $15 Money spent on food every month= $132
Q: The following are extracts from the national income account of a country. COMPOSITION Compensation…
A: 1.
Q: a) Explain why individuals may try to smooth their consumption over their lifetime. Illustrate this…
A: The simple Keynesian model assumes that in the short run the prices of the goods are constant and…
Q: If a monopolistʹs marginal revenue is $18 a unit and its marginal cost is $17, then?
A: In the monopoly Market equilibrium conditions is determined by where Marginal revenue is equal to…
Q: hat would be the likely effect of Mike Cannon-Brookes's plan on the energy market according to…
A: The law of supply and demand is a hypothesis that describes the interaction between the vendors of a…
Q: Yearly demand for water by residents and businesses in the city of Black Bear Lake is equal to…
A: According to the question, Yearly demand of water : QD = 2000 - 10P where QD is millions of…
Q: With reference to the table given above, calculate: iii. National Income iv. Personal Income…
A: Gross domestic product refers to the market value of goods and services that are produced within the…
Q: Define Expected Shortfall (ES), which is also called "Conditional Value at Risk "Expected Tail…
A: Conditional Value at Risk (CVaR), otherwise called the expected shortfall.
Q: Consider the following picture: y'-t' y-t If the interest rate on borrowing (r2) increases, what…
A: In a market, interest rate refers to the factor or determinant that influence the demand or supply…
Q: Given the following information, what are the values of M1 and M2? Small time deposits $650 billion…
A: M1 = currency + Demand Deposits + other deposits + travelers check M2 = M1 + small time Deposit +…
Q: An inflation-control target is O A. achieved in cooperation with several leading central banks. O B.…
A: An inflation-control target is Correct Answer: (B) a range of inflation rates set as a target by a…
Q: 1. The demand function in a market given by p(X) = 100- X, where X is the industry output. Campbell…
A: Monopoly output is produced where MR=MC
Q: What can cause a shift in the long-range aggregate supply (LRAS)? a) a change in foreign spending O…
A: In economics, aggregate supply refers to the total amount of goods and services that businesses in a…
Q: How does the United States fare on quality of care?
A: Answer is given below
Q: 1. The demand function in a market given by p(X) = 100 - X, where X is the industry output. Campbell…
A: Monopoly output is produced where MR=MC
Q: What are the common characteristic for perfect competition, monopoly and monopolistic competition
A: Market competition refers to the competition that exists between the firms.
Q: By the twentieth century, the rapid Industrialization of threatened British economic predominance.
A: Industrial Revolution, in modern history, the course of progress from an agrarian and craftsmanship…
Q: 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing…
A: *Answer: The payoff of the employee i makes a contribution with in an interval [0,10] is given as:…
Q: In reality, the economies of most countries are mixed rather than being pure market or command…
A: Pure market uses private ownership as the means of production but in the command economy, there is…
Q: Economists sometimes disagree; why? Group of answer choices A. by not computing the opportunity cost…
A: The correct option is C. Normative statements are those which are related to 'what ought to be'.…
Q: Compared to 2020, the price of computer chips is much higher today and revenues from computer chips…
A: Elasticity of demand is often measured by taking into consideration its impact on the total revenue…
Q: The following three mutually exclusive alternatives have a 9-year value. A C $400 $500 95 $300 50…
A: Following are the cash flow details of the three alternatives : Life = 9 years Alternative…
Q: A child is given $8.80 of pocket money to be spent on either hard candies or chocolates. Chocolates…
A: Here, given information is: Price of chocolates: 40 cent Price of candles: 80 cent Total spending:…
Q: scores from 100 third-grade classes, estimates the OLS regression: TestScore 520.4 – 5.82 x CS, R² =…
A:
Q: Consider the following data. 14 21 23 21 16 19 24 22 25 16 16 24 25 19 16 19 18 19 21 23 20 12 16 20…
A: A frequency distribution is basically a graphical or tabular depiction of the number of observations…
Q: Discuss the concepts of internal and external supply chain integration, and explain why eachof these…
A: External supply chain integration:- External supply chain integration is the process of working…
Q: 15. C = 50 + 0.8Yd G =80 |=70 T=100 Based on the information given above, calculate the national…
A: The equilibrium level of the national income is defined as that point where the aggregate supply and…
Q: Demand and Cost facing Monopolist Total Total Marginal Marginal Total Price Quantity Variable Profit…
A: Total revenue can be calculated by multiplying the number of goods by the prices. Profit can be…
Q: е. Millon National Bank has 8 million British pounds (£) in one-year assets and £6 mill year…
A: Answer given below,
Q: Henry Potter owns the only well in town that produces clean drinking water. He faces the following…
A: Given, Demand:P=60−Q Marginal Revenue:MR=60−2Q Marginal Cost:MC=Q
Q: If Canada is said to have a balance of payments deficit,this means that OA.the Bank of Canada…
A: In an open economy, the balance of payment account is one in which a country records all of its…
Q: Explain the idea behind diminishing marginal returns and give a real-life example.
A: Diminishing Marginal Returns happen while expanding one unit of creation, while holding different…
Q: By how much does the United States outspend its peers?
A: The Department of Defense's budget is a part of the US national budget. This budget is allocated to…
Q: Which of the following is the total demand for goods? A. Y B. C+I+G C. C+I+G-T D. G-T
A: In an economy, total demand refers to the amount of goods and services required by the people of a…
Q: 3. We learned in class that for a given A, the f(r) that minimizes the cost function i=1 is a…
A: A cost function is basically a formula that predicts how much something will cost at a specific…
Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…
A: C(y) = y2 + 1 MC = 2y and, D(p) = 36 - 2y Now, for long run equilibrium P = MC 36 - 2y = 2y 4y = 36…
Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…
A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…
Q: If some of our largest trading partners were to fall into a recession, we would expect U.S.…
A: If some of our largest trading partners were to fall into a recession, we would expect U.S.…
Q: Define, identify and/or briefly explain the following terms, concepts or ideas: 1) Formula Used for…
A: Answer- (1) Formula Used for Bond valuation- The bond valuation is calculating the present value of…
Q: The diagram below illustrates the cost curves of a firm operating in a perfectly competitive…
A: Here, the given graph represents different cost function of a perfectly competitive firm in the…
Q: An equipment has a first cost of P10, 000 a salvage value of P1000 at the end of 10years.Determine…
A: Declining balance method:- Rate of depreciation = 100% / life of assets…
Q: Suppose the unemployment rate is 4.8 percent, the labour force participation rate is 62 percent, and…
A: Given:- Unemployment rate=4.8 percent or can say 0.048 Labour force participation rate=62 percent or…
Q: A city water and waste-water department has a four-year-old sludge pump that was initially purchased…
A: Given that; Initial amount of pump = $65,000 Selling price = $36,500 Purchase price of replacement…
Q: The aggregate demand curve is represented by which of the following equations? O a) AD - Price level…
A: The measure that depicts the final value of goods and services being produced within an economy is…
Q: se the graph to answer the following question: Explain why Balance does or does not have excess…
A: Excess capacity is a situation when the firm is producing output that is less than the minimum…
Q: What is efficiency? Is it the only goal of economic policymakers?
A: Scarcity: - it is a very basic problem of economics that is related to the limited availability of…
Q: The Great Recession was similar to other recessions since World War Il in that O a) the rate of…
A: The situation that depicts a massive contraction in activities of the economy and a drastic fall in…
Step by step
Solved in 2 steps
- When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that the cartel could stay together over the long term-that the incentives for individual members. to cheat would become too strong. More than fort),r years later, OPEC still exists. Why do you think OPEC has been able to beat the odds and continue to collude? Hint: You may wish to consider non-economic reasons.Does each individual in a prisoners dilemma benefit more from cooperation or from pursuing self-interest? Explain briefly.Suppose that the market for e-readers is an oligopoly controlled by Amazon.com , Barnes and Noble,Sony, and Apple. Barnes and Noble is consideringincreasing its output. How would this affect themarket price? How would it affect the profits ofeach company?
- A Prisoner's Dilemma Game produces a second-best solution because:A All of the aboveB This game only applies to monopoliesC It is a cooperative game and firms refuse to stick to the agreementD If its a non-cooperative game and it is illegal for firms to colludeSuppose Clomper's is a monopolst that manuractures and sels stampen, an extremely trendy shoe brand with na close substutes. The followng graph shows the market demand and marginal revenue ( MR ) ourves Clomper's taces, as wall as ins marginal cost ( MC ) , which is constant at $ 3 0 per pair of Stompers. For simplicty, assume that hxed costs are equal to zero; this, combined wah the fact that Clampers marginal cost is constant, means that its marginal cost curve is also equal to the average total cost ( ATC ) ourve. Trs , suppose that Compers camnct price discriminate. That is , it must darpe each consumer the same price for Stompers regardess of the consumer's wilingness and ability to pay. symod ) to shade une pronc, une green pants ( crange symbol ) to shade che consumer surpus, and the black points ( pius symood ) to shade the Suppope now that Clomper's is able to pertecty prico discriminate - that is , it knows cach corsumer's willingness to pay for a pair ar…Y5 The new food delivery company DoorDash is thinking of entering New Zealand. Its rivalry is the existing UBER Eats. Both these companies simultaneously choose whether to operate in January, February, March, or April, or not to operate at all. Thus the strategy set for both these companies is {January, February, March, April, or Not to Operate}. Assume that the profit received by a monopolist in month m (where a monopoly means only one company is operating) is 10 x m – 15, whereas each duopolist (so both are operating) would earn 4 x m – 15. A company makes zero profit for any month that is not operating. Also, the value of m while calculating the profits for a particular month in the above equations is as follows {January = 1, February = 2, March = 3, April = 4}. The payoffs of the strategic form of this game are the sum of the profit of all the months. For example, if DoorDash operates in February and UBER Eats in March, then DoorDash earns zero profit in January; 5 (=10 x 2 - 15)…
- For each of the fo llowing characteristics, say whetherit descriOOs a monopoly firm, a monopolisticallycompetitive lirm, both, or neither.a. laces a downward ..sloping demand cut\'eb. has marginal revenue Jess than pricec. laces the entry ol new firms selling: similarproductsd. earns economic profit in the long: rune. equat~ marginal revenue and marginal costf. produces the socially efficient quantity of outputSuppose three Cournot competitors, each with costs Ci = 30qi, face an inverse market demand curve of P = 480 – 4Q. Suppose merging will not change costs. a. Find profits for the three firms. Note: Don’t round your answers. How will the profits change for F1 and for F2|3 if F2 and F3 merge? b. Suppose that after the merger occurs, F1 and the new firm F2|3 successfully collude at setting the monopoly price and output, and splitting the resulting monopoly profits. How, if at all, does this change the impact of the merger on F1 and on the merged firm?(a)Suppose that the two firms collude and set prices to maximize their joint profits instead of playing the Nash equilibrium. Suppose that the locations are symmetrically locates at a and 1−a. What prices would the firm set if it acts like a monopolist ? (b) If the firm colludes, where will it locate its two establishments?
- Two firms dominate the market for surgical sutures and competeaggressively with respect to research and development. The followingpayoff table depicts the profit implications of their different R&Dstrategies.a. Suppose that no communication is possible between the firms; eachmust choose its R&D strategy independently of the other. Whatactions will the firms take, and what is the outcome?b. If the firms can communicate before setting their R&D strategies,what outcome will occur? Explain.Firm B’s R&D SpendingLow Medium HighLow 8, 11 6, 12 5, 14Firm A’s R&D Medium 12, 9 8, 10 6, 8 SpendingHigh 11, 6 10, 8 4, 62. The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is:P = 8 - 0.005Qdwhere P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output.a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw?b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh?c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function:P = 200 - QA - QBwhere QA and QB are the quantities sold by the respective firms and P is the sellingprice. Total cost functions for the two companies areTCA = 1500 + 55QA + Q2ATCB = 1200 + 20QB + 2Q2BAssume that the firms act independently as in the Cournot model (i.e., each firmassumes that the other firm’s output will not change).a. Determine the long-run equilibrium output and selling price for each firm.b. Determine Firm A, Firm B, and total industry profits at the equilibrium solutionfound in Part (a).
