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A: Sunk cost is the cost which is incurred already and this cost can not be recovered.
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A: Cost-plus is a pricing method which uses to secure margin by fixing mark-up. The manufacturing firm…
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A: Given, Total number of firms in the industry : 100 Fixed costs = $8 Equilibrium is at $15
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A: We know that in the short run, there are both fixed and variable costs. Since some factors or input…
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A: MC= TC2-TC1/Q2-Q1
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A: The short-run is the time period where at least one factor of production is fixed and others are…
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A: D. When the marginal revenue is greater than the marginal cost, the production of the firm will…
Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…
A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…
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Q: The following table provides information about long-run average cost curve of a firm: Quantity LRAC…
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A: The break-even point refers to the price where there is zero profit i.e., total revenue is equal to…
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A: Large manufacturing equipment is such type of input that is variable only in the long run. It is…
Q: When a firm maximizes profit in the short run, it should consider: all costs, including…
A: The short run is a period in which the time period is not long enough to make changes in all the…
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A: Average total cost is the ratio of the total cost to quantity. The rise in total cost causes the…
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A: Minimum efficient scale is defined as the level of output at which all economies of scale are…
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A: Meaning of Opportunity Cost: The term opportunity cost refers to the situation under which the…
Q: The difference between economic profit and accounting profit is that economic profit is calculated…
A: Economic profit is reffered as the total revenue of the firm (from sales) minus the costs of all…
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A: A natural monopoly firm experience economies of scale, i.e., a decrease in ATC as output increases.…
Q: I. Assumptions. Please underline the right answer. There are (few/many) buyers and sellers. The…
A: A perfect competition is on one finish of the market structure vary. during this context, the word…
Q: The total cost function is C(q) = q³ – 59q² + 315q + 200 and the revenue function is R(q) = 1000q –…
A: The total cost of production refers to the monetary value of inputs used by the firm in the…
Q: Economic profit is frequently * greater than total revenue. defined as total revenue minus total…
A: Accounting profit refers to the total revenue that remains after paying all the explicit costs of…
Q: In perfect competition, marginal revenue Group of answer choices increases as more is sold.…
A: Perfect Competition: It is the market situation where a large number of buyer and seller exists.…
Q: firm is producing and selling some output at an average variable cost of $8 per unit and bringing in…
A:
Q: A company's short run total cost function is given by TC(q) = 3.0q^(3) - 1.0q^(2) + 3.6q + 3.…
A: In the short run there exists fixed cost which does not depend on output. The production decision…
Q: This question deals with cost curves and isoprofit curves. Keep in mind that the formula for a…
A: The isoprofit curve is a line joining various combinations of quantity (Q) and price (P) that would…
Q: Total Total revenue cost $1,200 1,000 800 600 400 200 100 320 440 Output
A: Here, the given graph shows the relationship between total cost and total revenue when TC and TR…
Q: Which of the following is correct? economic profit + implicit costs = accounting profit O implicit…
A: Economic Profit is the difference of between the total revenue and total cost of all the inputs.…
Q: If a firm's average variable cost curve decreases when the firm increases its output, then the firm…
A: Average variable not entirely settled by separating the total variable cost by the output.
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A: Originally we have:Q=20,000P=$10FC=$60,000TVC=$120,000now as price reduced by 5% then new price will…
Q: Explain the role of costs in pricing decisions and describe how various combinations of price, fixed…
A: The major costs in pricing decisions can be listed as follows: Fixed cost: Fixed costs are the costs…
Q: Which of the following definitions is correct? Economic profit accounting profit - implicit costs…
A: An economic profit or loss is the difference between the revenue received from the sale of an output…
Differentiate between the following
- Implicit and explicit cost.
- Market shortage and market surplus
- Economic profit and accounting profit
Step by step
Solved in 3 steps
- Which three of the following factors are associated with a perfect market? A high degree of mutual interdependency between competing firms B.Transparency of production methods and cost structures No barriers to entry into the market D Strong brand images amnong competing products in the market E The inability of buyers and sellers to influence the market price The following two statements have been made about the accounting and auditing professions (1) Only a member of a CCAB or IFAC body may refer to themselves as an accountant when dealing with clients and members of the public (2) The Financial Reporting Council has statutory powers in relation to the regulatory framework for the auditing profession which have been delegated by the government Are these statements accurate or inaccurate statement (1) Inaccurate; statement (2) Accurate statement (1) Accurate; statement (2) Accurate; statement (1) Inaccurate; statement (2) Inaccurate; statement (1) Accurate; statement (2)…Suppose 4Sisters is a patented vaccine. Her producer is facing a linear demand function for 4Sisters. She manufactures at a constant marginal cost of $20. Reports indicate that she produces 12,000 units of vaccine. She charges a unit price of $400. She is making a positive economic profit of $1,500,000. Draw a well-labelled diagram to indicate the output decision, pricing decision, economic profit, and the resultant deadweight loss in the market for 4Sisters. Indicate key figures with reference to the above given information.Textbook affordability advocates maintain that: A. Publishers are largely to blame for the rise in textbook costs B. Publishers are producing low quality texts C. Publishers are offering subscription services to students to maintain their market power D. Both A and C E. None of the above
- A primary characteristic of a competitive market is that Question 1 options: a) government antitrust laws regulate competition b) producers sell nearly identical products c) firms minimize total costs d) firms have price setting powerSport facilities sell tickets according to a seating map. At the Roger Centre, Blue Jays fans can see their Blue Jays for as high as $126 in the VIP area and as low as $17.50 in the 500 level. Provide the economic rationale and conditions for the price strategy at these sport facilities. Evaluate critically the following statement: “Price discrimination by a monopolist can increase welfare.” Use any of the market structure models to describe the COVID-19 vaccine manufacturing industry. Make sure you justify your answers.The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. Provide a fully labelled diagram to support your answer. Show all intercepts, equilibrium points, label axis and curves fully. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Calculate the consumer surplus with the price floor. PLEASE DRAW 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.
- The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. Provide a fully labelled diagram to support your answer. Show all intercepts, equilibrium points, label axis and curves fully. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Calculate the consumer surplus with the price floor. 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.The term Laissez faire indicates "the market is the most appropriate in determining its own price and balance amount" and not one particular person or institution that determines the amount of the balance.True or false?I EE Question 12 Which of the following is not a characteristic of a competitive price-searcher market? A Each firm produces a differentiated product. B с The entry barriers are high. Each firm faces a downward-sloping demand curve. D The number of firms in the market is large. 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.
- community surplus is maximized (i.e. Pareto optimality is achieved) when: a market is in equilibrium. the producer surplus is greater than the consumer surplus. a market is imperfectly competitive (e.g. a monopoly). a price floor is established.The Broadway show Hamilton is coming to perform for one night. There are two types of consumers interested in the show- current students and rich alumni. The demand curve for the student market is Q= 300-0.4P with marginal revenue MR= 750-5Q. The demand curve for the alumni market segment is Q=600-0.1P with marginal revenue MR=6000-20Q. If the two types of consumers are in the market, the MR=1800-4Q. The cost function is C(Q)=200Q and the marginal cost of serving either customer is MC=200. 3. what is the profit-maximizing price charged to students? what is the profit-maximizing price charged to alumni?The Broadway show Hamilton is coming to perform for one night. There are two types of consumers interested in the show- current students and rich alumni. The demand curve for the student market is Q= 300-0.4P with marginal revenue MR= 750-5Q. The demand curve for the alumni market segment is Q=600-0.1P with marginal revenue MR=6000-20Q. If the two types of consumers are in the market, the MR=1800-4Q. The cost function is C(Q)=200Q and the marginal cost of serving either customer is MC=200. 1. Assume the show knows there are different types of consumers but can not tell the difference so they must sell tickets at a single price. At what price do all consumers enter the market? What profit-maximizing price and quantity are the tickets sold at?
