Discuss briefly why competition exists in the industry? Give atleast Five reasons.

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A: Answer: According to supply-side economists, a change in the aggregate supply will lead to economic…

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A: Monopolist with: MC=0 Note: Since the questions asked are not sub-parts. According to our policy, we…

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A: Capital accumulation refers to an increase in assets from investments or profits and is one of the…

Q: Using the appropriate graphs, consider the short run impact of a natural disaster that causes a…

A: Intertemporal Model is defined as a model which describes which emphasizes on how current decisions…

Q: C= 60 + 0.7Y Also suppose that income (Y) is $600. Determine the following values: nstructions: For…

A: Here we calculate the value of MPS and MPC by using the given consumption function , so calculation…

Q: Why is the interest rate irrelevant in the one-period general equilibrium model? What is the…

A: One-Period General Equilibrium Model One-period General Equilibrium model is a theory that explains…

Q: Assume a government starts with zero debt. This government then runs an annual deficit for 28 years…

A: The financial liabilities of the government sector are referred to as gross government debt (also…

Q: Draw the AD curve (output demand curve), and show how you construct this AD curve from the Keyensian…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: A risk-neutral worker can choose to exert either low or high effort. The manager cannot observe the…

A: Given; Low effort:-Cost of workers= $0Prob (Rev=$200)=80%Prob (Rev=$600)=20%High effort:-Cost of…

Q: 7) Assume that a $1.00 increase in exports increases GDP by $3.00, and å income increases import…

A: Given information: A $1 increase in exports will increase GDP by $3, and a $1 increase in income…

Q: Suppose your scholarship was increased by 5% and inflation this year is 7.5%, what is the interest…

A: We know: Real Interest rate = Nominal Interest Rate - Inflation Here the nominal interest rate is 5%…

Q: The following are market demand and supply equations for a perfume product: QD = 70 − 4P QS = 10 +…

A: Equilibrium is established where the demand and supply forces are equal.

Q: n experiment can result in any of the outcomes 1, 2, or 3. (a) If there are two different wagers,…

A: The first matrix is R matrix which shows three possible outcomes across two wagers. The second…

Q: Xon, a small oil company, purchased a new petroleum drilling rig for $2,000,000. Xon will depreciate…

A: Answer; Working

Q: The following table provides data for an economy in a certain year: Consumption expenditures Imports…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Assume a government starts with zero debt. This government then runs an annual deficit for 28 years…

A: The financial liabilities of the government sector are referred to as gross government debt (also…

Q: reven What are those All-cargo, exempt, commuters and private O Commuters, charters, all-cargo…

A: Annual revenue is the aggregate sum of cash an organization makes during a given year time frame…

Q: QUESTION 7 IA IA AD Refer to the graph above. If the economy is at point B, the best government…

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A: Damages recovered by the non-breaching party as a result of a contract breach are known as…

Q: Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.…

A: GDP is the sum of consumption, investment, government spending and net exports in an open economy.

Q: ou should adjust your price to ________ due to the new entry and decreased demand elasticity.

A:

Q: It is 1979 and there is a sudden decline in oil supplies due to political turmoil in the Middle…

A: Monetary policy Monetary policy is the instrument of a central bank and monetary authority of the…

Q: O both the noncompetitive firm and the purely competitive firm.

A:

Q: A manufacturer has $600 to spend on the production of a certain product and knows that if "x" units…

A: We have cost of production = 600 and cost of X and y are $3 and $5 respectively.

Q: Outline Maintenance Implementation Strategies for the following: 1.Management roles 2.Engineer…

A: Strategy implementation is the process of applying plans into action to achieve the desired…

Q: Market Structure Characteristics EXAMPLE?? Pure Competition Many firms Many buyers Many firms with…

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Q: (a) Using the appropriate graphs, consider the short run impact of a natural disaster that causes a…

A: Solow Model is an exogenous model of economic growth which shows the changes in the level of output…

Q: Your income in 2004 was $67,000 and your income in 2020 was $95,000. The price index in 2004 was…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: A new production system for a factory is to be purchased and installed for $179,949. This system…

A: Answer; Assume that cost of electricity is $0.10 per kw/h.

Q: Which one of these tasks is a role that the Fed has? Select one: O a. Giving tax credits (reducing…

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Q: Nominal gross domestic product (GDP) increased from $15 trillion to $17 trillion, and the price…

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Q: 7) Assume that a $1.00 increase in exports increases GDP by $3.00, and å income increases import…

A: Given information: A $1 increase in exports will increase the GDP (or income) by $3. And a $1…

Q: Consider the following graph for question 6 and Question 7 Q, Q2 Q3 Q4 Effort `Profits 6. The graph…

A: (6) Answer :-    Option (e) is correct :- Q5    Explanation :-             Open-access…

Q: Individual Problems 14-6 At a student café, there are equal numbers of two types of customers with…

A: Price discrimination is the act of charging different prices for the same good or service based on…

Q: Define the following three major parts of a Bio-economic curve in terms of the Total Cost and Total…

A: otal cost is the sum of: TC (total cost) = TFC (total fixed cost) + TVC (total variable cost)

Q: 6a. An initial $2000 investment is made that returns profits of $1000 and 1500 in the first and…

A: Given, Inflation rate = 5% Market interest rate = 8% The market interest rate is the nominal rate of…

Q: P = 2,200 – Q. Mud packs can be produced at no cost. Determine the level of output that would be…

A: Given: P = 2,200 – Q.

Q: Question 4 John and Sotiris live on trees in two different forests. They each have eight hours to…

A: The production possibility frontier (PPF) depicts the various quantities of each product that may be…

Q: Suppose there are two firms that sell surfboards - Firm A and Firm B. Firm A produces high quality…

A: Introduction Two firms that sell surfboard such as firm A, firm B. Firm A produces high quality…

Q: 1 Sonic Enter Stay Out Dairy Queen (1000, 8000) High Prices, Low Prices (3000, 5000) (-1000, 4000)…

A: When dairy queen enters the business, there is no rival for it.

Q: f the total utility of consuming the first three pieces of pizza were 50,80, and 95 respectively ,…

A: Total utility refers to the total satisfaction derived from consuming a good. It is measured in…

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: Given that; Initial investment is $50000. Yearly revenue is $44000. Yearly expenses are $14000. Rate…

Q: What is the meaning of a surplus (deficit) on the current account balance? What economic…

A: Current Account Balance A balance of payment is a statement that records all the transactions of a…

Q: 9. Of the duopoly models that we studied, industry profits are highest in happiest in and consumers…

A: There are different types of models in the duopoly marke, such as Bertrand model, stackelberg model,…

Q: 7.50 Good B 2 $3.00 $3.00 Good C 4 $1.00 $1.50 The able above gives the information about the items…

A: The Consumer Price Index is a proportion of the typical change additional time in the prices paid by…

Q: Your roommate is thinking of permanently dropping out of school this semester. If his tuition…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: QUESTION 21 (Table: GoGo Gas and Fanny's Fantastic Fuel) Use Table: GoGo Gas and Fanny's Fantastic…

A: We have 2×2 game for two firms and they are deciding the action simultaneous.

Q: MULTIPLE CHOICE (identify the one best answer and provide explanations): Consider an economy in…

A: Growth is the rise in a country's production per capita over a lengthy period of time. Technological…

Q: Consider a firm running a business in the pure competition setting. This firm's cost function is as…

A: C(y) = 4y2 + 3y + 10

Q: Define equilibrium price and equilibrium quantity

A: When the supply of goods equals the demand, a market is said to have reached equilibrium price.A…