Fixed cost is

Q: monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa…

A: Price is a function of quantity required in the inverse demand function. On the other hand, the…

Q: B. Suppose that the economy is characterized by the following behavioral equations: • C= 240 +0.75…

A: Here we are given various components of the demand function: consumption , investment &…

Q: The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the…

A: Equilibrium exists when there is no change. In light of this, it is clear that an equilibrium price…

Q: Wharton Econometric Forecasting, LLC has been hired to analyze demand in 30 regional markets for…

A: At 95% confidence interval, coefficients whose t statistics are more than t critical value are said…

Q: Cowy Traders is considering investing in project Beef. The following details relate to this project.…

A: Given  Initial investment  562,500 Expected economic life 4 years MARR 12% Year 1 180,000…

Q: 6. No artificial obstacles or barriers of resources -allocation -free entry and exit -plurality…

A: Market refers to the system under which buyers and sellers interact with each other to strike a deal…

Q: In Italy, firms pay tax on reported profits at a constant proportionate rate t € (0,1). If the…

A: Probability of audit = p  Probability of no audit = (1- p) Tax without audit  Reported = tr  Tax…

Q: A firm produces 220 units of a good which cost an average of £8.25 each to produce and sells them at…

A: Profit means the amount excess of total revenue over the total cost.

Q: Price (dollars par bar 3.00 2.50 2.00 1.50 1.00 0.50 0 Supply of energy bars (original) 5 25 30 35…

A: Quantity supplied in economics refers to the volume of goods or services that suppliers will make an…

Q: The company that you manage has already spent $8 million on developing a new product – a website…

A: A finished good or consumer good is a final product ready for sale that is utilized by the consumer…

Q: PIE Answer the question on the basis of this table showing the marginal benefit that a particular…

A: Tax cost  It signifies any tax payment increase payments genuinely have to be given to a taxing…

Q: A consumer has utility u(x₁, x₂) = x₁ + x1x2. Suppose that, because of a shortage of good 1, the…

A: Utility function  : u(x1 , x2 ) = x1 + x1x2  Price of good 1 : P1  , Price of good 2 : P2  Income =…

Q: Question 5 Other things being equal, the higher the value of elasticity; the more likely the…

A: Price elasticity of demand will be calculated as the ratio of the percentage change in quantity…

Q: A decision-maker with initial wealth w> 0 is choosing how many tickets to buy for a raffle. Tickets…

A: Price of a ticket = 1  Number of tickets bought = y     such that   y ( 0 to w ) Income = w  Reward…

Q: In response to increasing concern about man made climate change, there have been a number of policy…

A: The problem of environmental degradation occurs (pollution) due to the human economic activities and…

Q: The demand for a good is given by QD = 800 – 0.5P. What is consumer surplus at P = $400? Group of…

A: Consumer surplus is the economic measure of a customer's excess benefit. It is determined by…

Q: 4. Consider the Cash Flow diagram (Figure 2) where money is deposited in Riyadh Bank for 5 years.…

A: Let's tabulate the given cash flow diagram:  Year Cash flow 1 $1200 2 $1000 3 $800 4 $600…

Q: 1. Imports, exports, and the trade balance The following table shows the approximate value of…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: 5. Consider a weather forecaster who is paid based on her performance. Each day, she forecasts the…

A: Probability of Rain = p  Probability of no rain =  (1 - p )  The forecast is 'q'  Bonus if it rains…

Q: two firms face the direct market demand curve given Q = 15-p, where Q = 9₁ +92 and q2 are the…

A: There are only two firms in the cournot duopoly. These two firms competes on the basis of output.…

Q: MACROECONOMIC

A: Introduction: It is given that the total amount that is held by ALI in cash is USD 200. Out of this…

Q: Jordan usually pays a price between $14 and $20 per kilogram of sugar. His monthly total expenditure…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: Ricardo's theory of trade is based on_ ratio). (A: productivity of labor; B: opportunity cost; C:…

A: David Ricardo theory of international trade is landmark and it has refined the theory of Adam Smith.…

Q: The graph shows an economy's aggregate demand and aggregate supply curves and potential GDP. Does…

A: Here, the given graph shows the aggregate demand curve, short-run aggregate supply curve, and…

Q: 14. Products differ in functional features, materials and design -less consumer welfare -real…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: You are considering the purchase of a certain stock. You expect to own the stock for the next four…

A: When referring to investments with known or anticipated return rates, the term "expected return"…

Q: how can tariff be a source of government revenue?

A: All of the government's earnings from taxes and other sources are referred to as government revenue.…

Q: 7. Find the maximum sustainable yield for a population governed by the model = rxe(1-x/K) – dx x' =

A: The maximum sustainable yield or MSY refers to the highest yield that can be achieved from a stock,…

Q: All members of a resource cartel share a common objective, namely increase prices as much as…

A: An official pact of firms in an oligopolistic sector is known as a cartel. Cartel members may agree…

Q: The gains from specialization and trade are based on absolute advantage.   Question 4 options:   a)…

A: Absolute advantage is the ability of the country to produce more of the good than the other country.

Q: Consider the table of GDP and population for several imaginary countries. Country GDP in millions…

A: Introduction GDP states the total market value of all final goods and services produced in a year in…

Q: The agricultural market for corn can be characterized as a purely competitive industry. How will an…

A: Revenue is the product of price and quantity.    Cost is the investment made to produce the goods or…

Q: The cost of producing a units of a commodity is given by C(x) = 100+ 40x + 2x². (a) Find C(0),…

A: Variable costs change depend on the amount of output produced. Variable costs may incorporate labor,…

Q: The old adage “time is money” comes into play here, too, as saving time is often tantamount to…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Mention and explain three social consequences produced by economic crises. What is the…

A: People who migrate for economic reasons do so in order to benefit from the more favourable economic…

Q: Kooche Company plans to invest $1,000,000 in projects next year. $700,000 will be provided through…

A: We use the formula for the Weighted Average Cost of Capital (WACC): WACC = (Weightage of equity*cost…

Q: For both parties to gain from trade, the price at which they negotiate the terms of trade must…

A: Trade is an economic practice in which countries exchange goods with each other. The trading of…

Q: Russia trades chocolate with France, where it is a staple. The government of Russia places a price…

A: Price floor is the price set by the government which is the minimum price that should be charged…

Q: Imagine there is an outbreak of 'mad sheep' disease, which wipes out a considerable portion of the…

A: a) Two factors occur when the price of haggis rises that will influence how many (units) of haggis…

Q: A consumer has preferences over 3 goods represented by the utility function u(x1, x2,…

A: u = (x1x2 )0.5 - 2-x3  MUx1 = 0.5 (x2 / x1 )0.5  MUx2 = 0.5 (x1 / x2 )0.5  MUx3 = Ln2 It is given…

Q: Tony has just graduated from college and has now applied for a full time position where he is…

A: An individual is included in the labor force if he is having a job or he is actively looking for it…

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: An inelastic demand or supply curve is one where a given percentage change in price will cause a…

Q: In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its…

A: Introduction In the case of a competitive firm, the average total cost will be downward sloping as…

Q: Currently there is an incumbent monopoly in a market.  Next year, a potential entrant may enter the…

A: Game theory is the study where strategic decisions made by people are studied. It is used for…

Q: How do two countries benefit from trading with each other

A: We know that Countries generally trade with other countries when they lack resources, to satisfy and…

Q: In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who…

A: Let, the price of admission at Alfonso's Wonderland be = $PA. The price of admission at Bernice's…

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly  This loan is a fixed payment loan…

Q: In an economy consisting of two  people producing two goods, it is possible for one person to have…

A: It is not possible as you can't have comparative benefit in each items.

Q: Why did China move to or transistion to a socialist market economy?

A: China started its economic transition in 1978 with the aim of establishing a socialist market…

Q: TRUE OR FALSE. If the seller cannot change his quantity supplied of good “w” after the price of good…

A: Ans. The elasticity of supply for good measures the responsiveness of change in the quantity…