(Figure: Market Demand Curve I) The graph shows the market demand curve. Prike (S) 40 36 32- 28 24 20 16 12- MC=AC MR 56789 10 Quaantity The equilibrium market quantity in a Bertrand Competition with identical goods is O8 06 O 5.34 4
Q: Why would a profit-maximizing firm expand the use of each input until its marginal revenue product e...
A: Marginal revenue refers to the gain of additional revenue from each additional unit sold of a good. ...
Q: Multiple Choice : O. earning a normal profit . O. earning an economic profit . O. generating a loss ...
A: When calculating profit margins, explicit and hidden costs are considered; one way of looking at thi...
Q: (15 Marks) A new public arena costs $60 million. The largest portion of this amount, $40 million, is...
A:
Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...
A: The investment is considered fruitful when the present value of benefits exceeds the present value o...
Q: Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns to...
A: Diseconomies of scale happen when an organization/business develops so huge that the expenses per un...
Q: 1. Suppose that in order to engage in some legitimate business, entrepreneurs need permission from a...
A: Bribe function : N = 600 - 5(x + y ) When both the officials collude they jointly maximize the amou...
Q: Part 1 - What kinds of specific actions has the IMF taken in order to address economic or financial ...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: 5. If a credit union pays 4.125% interest compounded quarterly, what is the effective rate of intere...
A: Given: i (nominal annual rate)= 4.125% m= 4 Unknown: ie
Q: A reputable doctor quits his job, which pays $77,000 a year, to open a non-governmental organization...
A: Opportunity cost is also called implicit cost. It is the cost of the incurred due to the foregone be...
Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...
A: The above problem is based on the cost-benefit analysis whose other name is benefit-cost analysis th...
Q: Assume that the velocity of money is constant in the short run. Assume that the real GDP grows by 4 ...
A: Velocity(V) = constant Growth of real GDP (Y) = 4% Money supply (M)= 5% Price level(P)= ?
Q: All of the following rules are effective in reducing the budget deficit except O A. spending caps. B...
A: Politicians frequently set goals to erase fiscal deficits by a specific year. There is a huge politi...
Q: A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M....
A: Given; Worth of chemical plant= P110M Estimated life= 6years Scrap value = P10M Cost of new plant= P...
Q: For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to determine the...
A: AW method:When comparing alternatives, the AW method is commonly used.AW means that all incomes and ...
Q: True or False : 1.A stronger value for dollar boosts exports and restrains imports with explanation...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Since Covid hit in 2020, the Federal Reserve created $6.5 trillion of new money. Currently bank rese...
A: Given information: Change in monetary base: $6.5 trillion Reserve requirements: 10% To find: effec...
Q: 70 Supply 60 50 40 30 20 10 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours...
A: We know that In free market equilibrium, the economic surplus is equal to consumer plus producer sur...
Q: If a country chose to produce twice as many wooden chairs as before, how would that affect its produ...
A: Law of increasing cost implies that if a producer increases the production of one good, then he h...
Q: QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it woul...
A: Answer: Diseconomies of scale: diseconomies of scale occur when due to an increase in the quantity p...
Q: Consider a game between 2 payers (Ann and Bill) where each chooses between 3 actions (Up, Middle and...
A: Players 1: Ann Player 2: Bill
Q: What other variables (other than income and prices) do you think could influence the demand for coff...
A: Demand is influences by various factors which keep on changing according to a person, situation and ...
Q: The Jabot company's production function is: Q(L, K) = L½K½ The target level of output is: Q = Qo The...
A: In the long run the optimal condition is given by, MRTS = (w/r) This means that the slope of the iso...
Q: According to the textbook, which of the following statements is (are) correct? (x) Taxes on specif...
A: Tax revenues are collected by the government to undertake government activities such as construction...
Q: List down the important ideas/concepts presente. Globalization is the term used to describe how cou...
A: Globalization is the connection and integration of people, businesses, and governments all across th...
Q: Suppose Alice faces the following prices and income across two periods. Prices Income Period 10 1 20...
A: We have p1=10, p2=12 and m1=200, m2=250and r=5% or 0.05 We have to find an intertemporal budget for ...
Q: Consumer has utility function In(c1)+beta'In(c2), where beta=1. Interest rate i=0%. (NOTE!) Income y...
A: The lifetime budget constraint is Y1 + {Y2/(1 + r)} = C1 + {C2/(1 + r)} Utility maximizing consumpti...
Q: the difference between gross income and disposable income. the percentage reduction in taxes due to ...
A: Average Propensity to Save can be defined as the amount of the disposable income that is saved. It i...
Q: What is the effect of an ad valorem tax of v (the share of the price that goes to the government) on...
A: A fully competitive corporation just has to make one fundamental decision that is how much to produc...
Q: International financial capital flows into the United States come from: а. income that is not spent ...
A: International financial capital flows into the United States is the money invested into the United S...
Q: Cooperton and Denalla each produce two products; pots and pens. The table shows the productlon possi...
A: In Cooperton : Opportunity Cost of Pot = 2000/100 = 20 pens Opportunity Cost of pens = 100/2000 = 0...
Q: 4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gagg...
A: "The catch-up effect in development economics indicates convergence i.e. over time poorer nations te...
Q: Question 1: Suppose the economy's PPF is given by Y=100-X²/100 and that there are oy cn people in th...
A: PPF equation : Y = ( 100 -X2)/100 (Represents productive capacity ) U(t) = Xt*Yt (For thomas ...
Q: Pranav's household consumes 1,000 litres of gasoline per year. After $0.15 gasoline tax was introduc...
A: Answer -
Q: What is the status of the Doha Round of table negotiations? Identify the key stumbling block of this...
A: The negotiations has collapsed in the 29 July with respect to the issues and the existence in betwee...
Q: Diminishing marginal product is also known as a) net investment. b) diminishing returns. c) deprecia...
A: Net investment is the difference between total amount of money spend on capital and the depreciation...
Q: Why is the more recently emerged security-industrial complex detrimental to achieving justice
A: The overcrowding of our nation's jails is one of the most challenging concerns facing our criminal j...
Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is ...
A: Equation for budget constraint: PX * X+ PY * Y = M where, PX and PY are the price of goods on X and ...
Q: A good economic model O a) is simple, flexible, and useful for making accurate predictions. O b) nev...
A: A good economic model is a model which is easy to understand, involves less complexity in formation ...
Q: loan wants to buy land to expand her farm. She estimates one property would generate $780 ber acre i...
A: The land will be bought after the coat benefit analysis . Cost and benefit analysis plays very impor...
Q: Presented below is information pertaining to Delsnyder Specialty Foods, a calendar-year sole proprie...
A: As you have posted multiple independent questions, we are answering the first question. Kindly repos...
Q: Consider the market for plastic straws, in which production causes pollution (air pollution, waste p...
A: Answer: Given, Quantity demanded (marginal social benefit): Qd=6200-4P Marginal Private Costs: Qs=2M...
Q: 4) If the range of profitable demand for a company producing digital pumps was D'1 = 8.5 units and D...
A: 4. The profit range for a specific transaction or investment refers to the range of possible lucrati...
Q: State whether the following sentence is correct or not: “innovation is a natural consequence of the ...
A: Innovation, as an idea, alludes to the process that an individual or association embraces to concept...
Q: Annuity (A/P, 9%,2) = 0.10 (A/F, 6%,15) = 0.06 (P/A, 4.5%,10) = Blank 3 (F/A, 2%,45) = Blank 4 (A/P...
A: Introduction 1. (A/P, 9%, 2) = I = P. r. t I/P = 0.09 × 2/12 I/P = 0.015 Now A/P = 0.015 + 0.09 A/P...
Q: Name and explain on the example of your interest one factor that caused the shift of the supply for ...
A: Introduction Supply curve in loanable market shows the behavior of savers. When interest rate are hi...
Q: If the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:
A: Marginal propensity to save is defined as that proportion of the aggregate increase in income which ...
Q: Taking the data of the following table answer 4 through 5. Indicators of Puerto Rico, 2009 (Income i...
A: The Gross products mean the total market valu of goods which was produced domestically during the ye...
Q: 7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that...
A: Competitive Market:When there are many producers competing to provide consumers with the goods and s...
Q: Is this possible that the Monopolists necessarily make the profit?
A: A monopoly market is the place where a seller experiences dominant power due to no close substitutes...
Q: What are 5 techniques to employ comparative advantage?
A: Production means the goods and services are produced by converting raw materials into finished goods...
Step by step
Solved in 2 steps
- 4 The Competitive Equilibrium Model—Deriving Supply] Negar owns a trendy and sustainable shoe factory. The total cost of producing a given number of pairs of shoes is displayed in the table below. Assume Negar can only produce the integer quantities of pairs of shoes specified in the table. Number of pairs Total Cost 0 400 10 410 20 430 30 460 40 500 50 580 60 680 70 800 b. Draw the supply curve for Negar’s shoe factory. c. Suppose the wholesale market for shoes that sell to retail stores is competitive, with a market price of $10 per pair (i.e., $100 per 10 pairs). If Negar’s goal is to maximize profits, how many pairs will she choose to sell? d. What are Negar’s profits when she sells the number of pairs from (c) at the market price of $10? e. Calculate Negar’s producer surplus given the price and quantity from part (c). How does this compare to the profit calculated in part (d)?Suppose that the market for chicken momos is perfectly competitive with ten firms producing momos. Tasty treat is one of the ten price-takers in the market for momos. The accompanying tables show the demand schedule for momos in Dhaka and cost schedule for "Tasty Treat". DEMAND SCHEDULE Price (BDT per plate) Quantity demanded (plate per hour) 10 900 25 675 30 600 40 450 50 300 70 0 COST SCHEDULE OF TASTY TREAT Output (plate per hour) Marginal Cost (BDT per extra plate) Average Variable Cost (BDT per plate) Average total cost (BDT per plate) 40 20 25 90 50 10 10 75 60 30 20 55 70 50 23 50 80 70 35 60 90 85 50 77 a) What is the value of the shut-down price and break-even price for Tasty Treat?How did you figure that out?b) Write down the individual supply schedule of chicken momos for Tasty Treat and the industry supply schedule for chicken momos.c) Plot the market demand and supply curves for chicken momos and find the equilibrium price and…COURSE: MICROECONOMICS - Bertrand's ModelAssume that a market is supplied by 2 companies, whose total costs are: CTi = 100Respective demand of each is: q1 = 120 - 2p1 + p2 and q2 = 120 - 2p2 + p1It is requested to:(a) calculate the firms' profit and reaction function.(b) plot the market equilibrium price and reaction function(d) calculate equilibrium quantity produced by each firm(e) determine profits that both firms will have at equilibrium.
- 1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.Give typing answer with explanation and conclusion Which of the following characteristic(s) does not describe a competitive market? 1. A market where firms can freely enter or exit the market. 2. A market where firms sell a differentiated product. 3. A market with few buyers and sellers. 4. A market where firms sell a nearly identical product. Choices A.2 and 3 B.1, 2 and 3 C.1, 3, and 44 Two firms (A and B) sell identical products. They move at the same time. Demand in the market is P = 400 - (QA + QB). Firm A has costs C(QA) = 5,000 and MCA = 0. Firm B has costs C(QB) = 5,000 + 50QB and MCB = 50. Firm i's marginal revenue function is MRi = 400 - 2Qi - Q-i. In price competition, what will be the equilibrium price of the products sold? In price competition, what quantity will firm A produce? B produce? In price competition, how much profit firm A earn? B earn? In quantity competition, what quantity will firm A produce? B produce? In quantity competition, what will be the equilibrium price? How much profit will A earn? B earn?
- 25) Refer to Table 8.5. If Phoebe produces four swords, her average fixed costs areA) $2. B) $10. C) $12.50. D) $50.26) Refer to Table 8.5. Assume that Phoebe is producing swords in a perfectly competitive market and the market price for swords is $30. To maximize profits Phoebe should produce ________ swords.A) two B) three C) four D) fivea) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A is a competitive firm and faces an equilibrium price of £12 for its product. The cost function of firm A is C_A (q,x)=q^2+〖(x-4)〗^2. . Firm B is a competitive firm and faces an equilibrium price of £10. Firm B’s cost function is C_B (r,x)=r^2+xr . Compute the equilibrium prices and quantities and the profits of the two separate, competitive firms. Interpret the first order conditions. Explain. b) Compute the social optimum, that is, the equilibrium prices, quantities, and profit when firm A and B are merged. Interpret the conditions and compare it to the solution in (a). Explain. c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b). d) Discuss other methods the government can use to restore the…Give typing answer with explanation and conclusion Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither. maximize total surplus result in some deadweight loss zero economic profit in the long run eliminate consumer surplus
- Exercise 5.6 Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. a. Draw a diagram showing Sparkle’s demand curve, marginal revenue curve, average total cost curve and marginal cost curve. Label Sparkle’s profit-maximizing output and price. b. What is Sparkle’s profit? Explain. c. On your diagram, show the consumer surplus derived from the purchase of Sparkle toothpaste. Also show the deadweight loss relative to the efficient level of output. d. If the government forced Sparkle to produce the efficient level of output, what would happen to the firm? What would happen to Sparkle’s customers?Use the table below to answer the question. The Waco Kid's Cowboy Hats Marginal Cost (dollars) 1st hat $24 2nd hat 30 3rd hat 38 4th hat 46 The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of The Waco Kid's cowboy hats is $40, then Group of answer choices: producer surplus will equal $28. there will be a surplus; as a result, the price will fall to $24. producer surplus will equal $24. producer surplus from the first hat will equal $40.Asap plz 1) A food industry is made up of 100 identical companies. Each firm has a short-run cost function which is the square of its output, which is SC = 0.5 q2 + 10q + 5. If the total market demand for the food is Q = 1100 – 50P, Questions: a. Calculate and Draw a graph showing the market point equilibrium b. Calculate how much is the consumer surplus? c. Calculate how much is the producer surplus ?