Economic profits in a perfectly competitive industry will encourage entry of new firms, which will shift the market supply curve to the left. True False
Q: . Assume that Lucky Bank is required to hold a 10% deposits as reserves, and there is a $3000…
A: It basically refers to the maximum amount of money that commercial bank can generate by a initial…
Q: Question 1 (a) The rates of growth of money supply is 10%, of velocity of money circulation 1%, of…
A: In economics, the inflation rate is a measure of inflation, the rate of increase of a price index…
Q: of the following, what is the best example of a perfectly competitive market? Select the best…
A: Competition is a feeling of rivalry that takes place between the firms.
Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…
A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…
Q: For the simple OLS model, Y; = B0 + B1 × X; + €j, categorize the following as correct or incorrect…
A: By looking the form of the equation, one can states that the equation follows some properties..
Q: In the context of optimal pricing, cannibalization refers to: a. A firm's low price for one of their…
A: Cannibalization refers to the decrease in sales volume and revenue as a result of introduction of…
Q: QUANTITY POINT POINT ARC ТОTAL POINT PRICE DEMANDED ELASTICITY 1 ELASTICITY 2 ELASTICITY REVENUE…
A: Given information Q=100-12.5P Given price and demand table
Q: 1. Two companies produce similar items for the same market. Company 1 produces q1 items and Company…
A: Given information Demand function P=90-q1-q2 TC1=1/4*q12 TC2=6q2
Q: Sally purchases a perpetuity immediate with annual payments that pays $4000 toda and Payments…
A: Specifics of annual payment - Increases by 5% annually Paid for 6 years Let the payment in first…
Q: Draw the two graphs & explain the market conditions at $50, $60 in the short run & the return to $50…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: 13. Envelope Curve III Consider a perfectly competitive increasing-cost industry with n identical…
A: Perfect competitive market is market which runs with n number of buyers and sellers. Under this…
Q: Which of the following would cause a shift in the short run aggregate supply curve? A decrease in…
A: PLEASE FIND THE ANSWER BELOW.
Q: Consider a Hotelling location game, where two firms simultaneously choose where to set up their ice…
A: The Nash equilibrium is a situation in which each player chooses an optimal strategy given the…
Q: Consider a coupon bond that has a par value of $800 and a coupon rate of 5%. The bond is curently…
A: Given:Par value=FV=$800Present value=PV=$792.61Coupon rate=5%Number of compundings=n=2…
Q: Suppose that changes in the bank regulations expand the availability of credit cards so that people…
A: The card that is being used for making purchases, and getting cash advances that in turn requires…
Q: 16. Suppose country A has abundant labor and scarce capital. Product L requires labor intensive…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: When the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550…
A: "As these are two separate questions, so according to the guidelines answer is provided to the first…
Q: Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand…
A: Given information World demand curve= 150-3Pd MCd=5+0.4Qd MCs=30+Qs
Q: 1) If a $2,000 one-year bond pays $170 in annual interest, the interest rate on this bond is (do NOT…
A: Bond is the the form of debt issued by the government or corporate sector to raise capital from the…
Q: Please answer What are some of the major developments in trade over the past two decades? What are…
A: Economic development is basically the process of improving a nation's, region's, local community's,…
Q: Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year,…
A: We have given We have to find an equivalent uniform annual deposit for uniform gradient series…
Q: BUSINESS OPPORTUNITIES CAN BE RECOGNIZED BY ENTREPRENEUR'S PRIOR EXPERIENCE. a. False b. True
A: In an economy, factors of production are needed to manufacture commodities and services, and…
Q: . Why is it that trade restrictions must be put in place? Provide a short example.
A: The buying and selling of commodities and services, with payment paid by a buyer to a seller, or the…
Q: A factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for…
A: The straight-line method is a technique for working out depreciation and amortization. Otherwise…
Q: Increasing marginal returns to labor A) describe the portion of a total product curve where the…
A: Marginal returns of labor is the additional output produced by employing an additional unit of…
Q: The price faced by the firm in a perfectly competitive market is $70 per unit. The average total…
A: Formulas of cost are: 1. Total Cost = Total Fixed Cost + Total Variable Cost 2. Average Total Cost =…
Q: A factory producing ink discharges effluent into a nearby river. A trout fishery downstream find…
A: The change in the cost to parties other than the producer or customer of a good or service as a…
Q: If the marginal revenue brought by hiring a worker is at P450/day, and the minimum wage is P537/day,…
A: The firm will maximise profit at a point where marginal revenue is equal to the wage rate.
Q: Inthe Roman Empie, the frenes ofsier coinswnt rom almost 10% to poimatly by the er 250 O 70 O 60 0…
A: Currency is a kind of payment that may be used to buy and sell products and services.In a nutshell,…
Q: Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago.…
A: EUAC or, Equivalent Uniform Annual Cost can be calculated by:EUAC = P(A/P, i %, n) - S(A/F, i %, n)…
Q: COMMUNICATION WITH THE MILLENIALS The Millennial (including Generation Y) have arrived in the…
A: According to the provisions of the Companies Act of 2013, a company is a firm that is founded and…
Q: 12. A car dealer advertise the sale of a car model for a cash price of P280,000. If purchased on…
A: Given cash price of car = 280,000 P Down payment = 15 % of price = 42000 Remaining balance to be…
Q: a. How much tax revenue is collected and what is the excess burden of the $8 tax on M? b. How much…
A: In this question, there are two goods :-good M and good K Both these goods are independent to each…
Q: What sort of event could lead to a simultaneous decrease in both inflation rate and the unemployment…
A: Inflation is defined because the rate at which prices rise over time. Inflation is sometimes defined…
Q: housing bubble has burst, causing a negative wealth effect. Use the IS-LM model to answer the…
A: Equilibrium in the IS-LM is reached at the intersection of IS and LM curves. IS shows equilibrium in…
Q: The average product of labor of workers in the Sony electronics facility that builds televisions is…
A: The average product refers to the average output (or products) produced by each input (factors of…
Q: By how much would GDP change due to the following: - A bookstore buys $5000 worth of books from…
A: We know, GDP = Value of Output - Intermediate Consumption GDP = Sales + Change in Stock -…
Q: For a product with external benefits like vaccines (positive externality), which of the following is…
A: Externalities: Externalities are the cost or benefits that are incurred or received by the third…
Q: Problem 1. Consider the following game. Notice that player 2 has two information sets. L M a e 2,2…
A: In the backword induction we first solve for player who is moving last in the game.
Q: (P/A, 5%,7) has a value equals to a. 5.7864 b. 0.070… c. 8.142 d. 0.8142
A: (P/A, r, n) is a present value of the annuity factor. Where, r is an interest rate n is the number…
Q: Scarcity and Choice Understanding what the market system does well and what it does badly is…
A: *Answer: 1. The true cost of something is not just the value the market puts on them. A salary is…
Q: 3. In the Solow growth model, suppose that the marginal product of capital increases for each…
A: PLEASE FIND THE ANSWER BELOW.
Q: Suppose that society decided to reduce consumption and increase investment. Briefly explain what…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…
A: Cost can be of two types, explicit cost and implicit cost.
Q: This table shows the number of cappuccinos that can be made per hour given each number of baristas…
A: Firm hires the labor where wage is equals to the value of MPL where VMPL = P* MPL
Q: Explain the implication of the human development index of the Philippines over the years. Is it good…
A: Human development index indicates the standard of living in a country.
Q: Discuss the Constitutional Limitation concerning prohibition against imprisonment for non-payment of…
A: Answer- No person should be imprisonment for non payment of poll tax. Poll tax means citizens are…
Q: 1) Joe has a utility function of U-B p4 where B- the number of burgers consumed and P= number of…
A: A consumer maximizes utility at the consumption bundle where marginal rate of substitution equals…
Q: Salyjust heard that her neig bor Rupert was invoved in an automobile scident If Sally assumes that…
A:
Step by step
Solved in 2 steps
- Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour, a unit of power). Next, to encourage conservation, Congress taxes all forms of energy EXCEPT solar power, causing an increase in the demand for solar Show what happens to the market and the firm in the short run; indicate clearly what happens to price, quantity, and profit.What is meant by selling cost? Name one market where selling cost is applicableAssume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should continue producing at the current output. produce a larger level of output. produce a smaller level of output. not enough information given to answer the question.
- The Android phone market is highly competitive since there is a large number ofcompanies and potential entrants. For simplicity, assume each firm has an identical coststructure, and the cost does not change with new firms’ entry. Each firm’s long-run average costis minimized at 300 and the minimum average cost is $150 per unit. Total market demand isgiven byQ = 15,000 − 50P.a. What is the Android phone market’s long-run supply curve? b. What is the long-run equilibrium price (P∗) and total industry output (Q∗)? Howmany companies are competing in this market?c. The short-run total cost curve for each firm is given by STC = 0.5q^2 − 150q +20000, where q is the firm’s production quantity. Find the short-run marginal cost(SMC) for each firm. What is the market short-run supply curve?d. Suppose Android phone has become more popular and the market demandcurve shifts outward to Q = 20,000 − 50P. In the *short-run*, find the new equilibriumprice. What is the new equilibrium price in…Procter & Gamble Co. is a major soap producer. All of the following, except one, would shift its supply curve of liquid soap to left . Which is the exception?a. an increase in the price of bar soapb. an increase in the price of a key ingredient of liquid soapc. environmental regulations force Procter & Gamble to use a more costly technology to produce liquid soapd. a decrease in the price of liquid soape. an increase in the wage rate for factory workers who produce liquid soapIf marginal revenue exceeds marginal cost, a competitive firm can increase profit by: a. Increasing output. b. Decreasing output. c. Making no change in output. d. Raising its price PreviousNext
- In a short-run competitive equilibrium, which of the following is always true? Profit equals zero. Profit can be negative, zero, or positive. Profit can be zero or positive, but not negative. Suppose that 6000 identical sellers each set their profit-maximizing output level at 20 units when price equals 55tk. Then what is the market quantity supplied at a price of 55tk? 200. 1,100. 1,20,000. 3,30,000.The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=631-5P. Market Supply is given by P=3+2Q. What is market PRICE? Enter a number only, drop the $ sign.The market for paperback detective novels is perfectly competitive. We have two types of book publishers in the market- Small Press and Large Press. Each Small Press publisher's supply curve is given by P=76+5Q. Each Large Press publisher's supply curve is given by Q=2P-24 Suppose there is only 1 publisher of each type. What is market supply when market price is $60? Enter a number only. Remember, fractions of goods are possible.
- In a competitive market with free entry and exit from the market a permanent rise in demand will lead to Select one or more: a. normal profits being made in the long-run b. excess profits being made in the short run (before new firms can enter) c. entry by new firms d. a permanent rise in pricesIn a purely competitive market at its long-run equilibrium, which of the following is not true? a The marginal benefit of the last unit of the product equals the marginal cost of producing that unit. b The maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit. c Price equals marginal cost, and they are equal to the lowest attainable average cost of production. d The combined amount of consumer and producer surpluses is at its minimum possible.Hello! I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me correct and resolve it. Please refer to the given pictures below for the questions and answers. | After verifying the given answers shown in the subsequent picture, PLEASE ANSWER LETTER D. | D. At this equilibrium market price, calculate the level of output and profit that each firm produces in the short- run. With this information, comment on the potential entry/exit of firms in this industry in the long-run. | NOTE: Type only your answers. Please do not handwritten your answers.
