Googol and Visagetext are two social media platforms. When Googol was launched, many reviewers claimed that it was better than Visagetext and advised users to switch. Today, Visagetext contimues to be the leader in the sector, despite rave reviews for Googol. This is an example of Othe superior product not always winning D Competition within the market. this is not an example of competition O Competition to dominate the market.
Q: MC ATC MR Quantity The diagram portrays Multiple Choice the equilibrium position of a competitive fi...
A: Competitive market refers top a market where there are many buyers and sellers in the market selling...
Q: Suppose a consumer's utility function is U(x,y) = min{x, y} For this utility function the optimal ch...
A:
Q: If there is an inflationary gap in the Canadian prairies and a recessionary gap in Ontario, what doe...
A: An inflationary gap is a macroeconomic term that gauges the difference between actual real GDP and G...
Q: The data presented in Table 1 below has the utility function schedule of an individual with an incom...
A: Total utility from legumes and rice will be maximum when marginal utility per dollar spent on legume...
Q: 1. You work for a beer company. Your boss wants to increase yearly sales by 5000 liters. To reach th...
A: 1) It is given that the price and the demographic composition of market is constant. Hence these two...
Q: The adjustment process for an economy experiencing an inflationary gap involves wages, unit costs an...
A: The inflationary gap is a type of GDP or output gap, it refers to the difference between actual GDP ...
Q: i. Explain two ways how policymakers respond to the inefficiencies of monopolists ECON1001
A: A monopoly occurs when a single corporation is the sole supplier of a specific commodity. Monopolies...
Q: QTFC TVC TC MC AFC AVCATC 10 4 4 4 Calculate Q when TVC = 4 Round to 2 decimal points. Do NOT includ...
A: Marginal cost is the total change in cost due to one additional unit of production . Whereas TC = ...
Q: The AD curve is negatively sloped because a fall in the price level, with an unchanged money supply,...
A: Keynesian theory of money give the various motives for demand for money . as per Keynes the demand ...
Q: Fill in the blanks using the number that corresponds to the correct word or phrase in the word bank ...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: The Bank of Canada's definition of M1 includes currency in circulation plus... a. Chequable deposits...
A: the Bank of Canada's definition of M1 includes currency in circulation plus all kinds of chequable d...
Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average ...
A: Marginal Cost is the additional cost incurred in the production of one more unit of output.
Q: Fiat money has value because it... O a. Can be manufactured at will by the issuing government. O b. ...
A: In a wide sense, fiat money refers to any kind of money that has been declared legal currency by a g...
Q: Suppose you are interested in studying the effect of education on wages (controlling for IQ and pare...
A: wagei=β0+β1educi+β2IQi+β3ParInci+∈i Education (educ) = in years Weekly wages (wage) = in $ Intellige...
Q: Suppose that a particular emissions abatement strategy would result in a $121 billion reductions in ...
A: Given:- Discount rate=2% Time=25 years Reductions=$121 billion. To calculate:- Maximum amount spent ...
Q: For demand function Qd = a - bP and supply function Qs = dP - c , using Cramer’s rule determine equi...
A: given that, demand function Qd = a - bP supply function Qs = dP - c
Q: Discuss reasons why women are more likely to be economically burdened in old age vs men.
A: A person is said to be economically burdened in old age (or in any stage of life) when his/her incom...
Q: 2b) If the price of the product in a perfectly competitive market increases what happens to the leve...
A: The answer is as follows:-
Q: 2. Imports and Exports Now we allow for international trade. Use the following information from prob...
A: Given; C=400+89DII= 300G=800T=12YExport; X=300Import; M=19Y At equilibrium:- Y=C+I+G+NXY=400+89(Y-T)...
Q: 2. If money is worth 5% compounded semi-annually, find the present value of a sequence of 12 semi-an...
A:
Q: n comes closest to making the LHS cash flow diagram equivalent to the one on the right? Let i=15% pe...
A: Cash flow diagrams address income and expenses throughout some time stretch. It contains a horizonta...
Q: what does Adam Smith mean by “self-regulating
A: Adam Smith in his book called "The Wealth of Nation" published in 1776 has described the "self-regul...
Q: he demand curve, the supply curve, or both to show what would happen if the government decided to im...
A: All answers given below,
Q: A firm has 60,000 shares whose current price is $62.57. These shareholders expect a return of 14%. T...
A: Total shares = 60,000 Price of share = $62.57 Return = 14% The firm has a 3-year loan of $1,900,000 ...
Q: One way that Bismarck nations control costs is through government-set prices for care. True False
A: Bismarck model is a health care system where people deposit some fee in a fund for the purpose that ...
Q: Question Three In the market for Corn kenkey (INFERIOR GOOD), consumers’ income has decreased. In th...
A: Here, it is given that Corn Kenkey is an inferior good and there is a change in consumer income as w...
Q: Year Unemployment rate(%) 20XX 7.3 30XX 7.9 40XX 6.8 50XX 5.6 60XX 4.8 70XX 4.0 80XX 3...
A: The trend of the unemployment rate over the years from 20XX to 80XX can be explained as follows:
Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at ...
A: We know that Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to...
Q: 18. When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely th...
A: OPEC which stands for Organization of the Petroleum Exporting Countries is a cluster of oil-producin...
Q: A tariff is a tax on imports. Such a tax can be replicated by applying simultaneously two domestic p...
A: Domestic policies include any sort of domestic tax or subsidy policy, as well as any type of governm...
Q: Suppose the government borrows $20 million more next year than this year. a. Draw and fully label a ...
A: PLEASE FIND THE ANSWER BELOW.
Q: Adam Smith optimistic or pessimistic about the effect on society of the
A: The Industrial Revolution was the change to new assembling processes in Great Britain, mainland Euro...
Q: A. What is the equilibrium wage for retail associates? How many associates are employed at the equil...
A: The quantity of labor that employers seek to hire at a given wage rate during a given span of time i...
Q: Anecdotal evidence suggests that some insurance companies in Germany advertise specifically to certa...
A: In the insurance market, it can be seen that there is high risk or more probability to have market f...
Q: Relate Human Dignity in Science and Technology
A: Progressively, whether or not a few types of research, like human cloning, encroach on thoughts of h...
Q: Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell-...
A: PLEASE FIND THE ANSWER BELOW.
Q: The Closed-Economy One-Period Model: Changes in TFP Consider the CEOP model. Show the effect of an ...
A:
Q: c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain (i) You...
A: Saving: This defines that when a person's income exceeds his consumption is called savings which mea...
Q: Good X D. IC2 IC • E C Good Y Moving from B to D, the person is giving up Good X and getting Good Y....
A: Take each option one by one.. ● YES, the moving from B to D, person is giving up the X to get the Y...
Q: Given the assumptions of the law of diminishing marginal utility (exactly the same product consumed ...
A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an ext...
Q: If the inflation rate is 7% per year and you want to earn a real return of 10% per year, how many fu...
A: PLEASE FIND THE ANSWER BELOW.
Q: Suppose the economy is growing faster than its long-run potential growth rate. To bring the real gro...
A: Here, it is given that the economy is producing more than the potential output, which explains the f...
Q: If, at a given interest rate and money supply, everybody simultaneously tries to add to thel? money ...
A: The price of bonds and interest rates are inversely related to each other.
Q: Kesearcn LaD NIKing Loage Totai Action (Dollars) (Dollars) (Dollars) No Recycling 2,000 1,000 Recycl...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public ...
A: Given that, GDP = $8billion Taxes = $1.5 billion Private saving = $0.5 billion Public saving = 0....
Q: Suppose that society decided to reduce consumption and increase investment. i. How would this chan...
A: consumption is the part of income that is not saved and investment is the process of capital formati...
Q: While trade flows have slowed down since (circa) 2010, capital flows have continued growing. Therefo...
A: When talking about globalization, it can be said that it is the situation when two or more countries...
Q: Draw the cash flow diagram for each of the following situations. (a) Today, you invest P100,000 into...
A: Given information Initial investment=P100000 3 years later invested 50,000 in the same fund 2 years ...
Q: 7. The following table shows the demand for water and cost conditions for the New South Springdale W...
A: a) quantity in gallons price per gallon ($) total revenue($) marginal revenue($) marginal costs($...
Q: what models have the best explanatory power and explain why? Sectoral model Electoral model Societal...
A: The regression model can be written as : Y = a + b X + e Where Y = Dependent variable a=...
Explanation it correctly and not copys
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm—Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as Tile King to avoid the possibility of a price war. The pnce charged by Tile King is $20,000. Ajax has the following short-run cost curve: TC=800,0005,000Q+100Q2 Compute the marginal cost curve for Ajax. Given Ajaxs pricing strategy, what is the marginal venue function for Ajax? Compute the profit-maximizing level of output for Ajax. Compute Ajaxs total dollar profits.DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the quantity of pencilstraded if the firms couldn’t cooperate?Two firms are engaged in Bertrand competition. There are 10,000 people in the population, each of whom is willing to pay at most 10 for at most one unit of the good. Both firms have a constant marginal cost of 5. Each firm is allocated half the market. It costs a customer s to switch from one firm to the other. Customers know what prices are being charged. Law or custom restricts the firms to charging whole-dollar amounts (e.g., they can charge 6, but not 6.50). a. Suppose that s = 0. What are the Nash equilibria of this model? Why does discrete (whole-dollar) pricing result in more equilibria than continuous pricing? b. Suppose that s = 2. What is (are) the Nash equilibrium (equilibria) of this model? c. Suppose that s = 4. What is (are) the Nash equilibrium (equilibria) of this model? d. Comparing the expected profits in (b) to those in (c), what is the value of raising customers’ switching costs from 2 to 4?.
- Please no written by hand solution Considerthe following problem. There are five firms producing a homogenous good and competing in quantities simultaneously. The demand function for this good is given by D(p) = 100−p, where p denotes price. The marginal cost is the same for all firms and equals 40 Answer the following questions. (a) Compute the equilibrium quantities and profits of each firm. (b) Now suppose that two of these firms (say firms 1 and 2) want to merge. (The remaining firms stay unchanged.) Merging, however, is costly. To merge, each merging firm has to pay a fixed cost F. Determine the highest fixed cost F that the two firms would be willing to pay in order to proceed with the merger.Air Canada and WestJet recently cut their prices for flights between Toronto and Edmonton to $199. In response, Porter Airlines cut its price from $239 to $199 for flights between Toronto and Edmonton in order to remain competitive. Based on this example, what degree of competition exists in the airline industry? Select one: O a. monopolistic competition O b. oligopoly O C. perfect competition O d. not enough information to answer O e. Monopoly BTwo firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models: (a) Bertrand Model
- Two firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models: 1) Cournor Model 2) Bertrand Model 3) Tacit collusion ModelTwo firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following model: (A) tacit collusion modelTwo firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models: (a) Cournot Model (b) Bertrand Model (c) Tacit Collusion Model.
- Two firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models; 1)Cournot Model 2) Bertrand Model 3) Tacit Collusion Model.Are the following statements true or false? (D). A monopoly earns total revenue of $5000 when it sells 500 units of output and totalrevenue of $5400 when it sells 600 units of output. Thus, the marginal revenue of the600th unit is $9.(E). We call a market where there is only one buyer for a good or service a monopoly.(F). There are a few firms selling differentiated products in a monopolistically competitiveindustry.(G). When a demand curve is a downward sloping straight line, the slope of the marginalrevenue curve is twice as steep as the demand curve.Below we the market demand for a good, and the total cost of producing various levels of quantities by the industry. This problem is a theoretical example of Cournot Competition, where firms choose quantities to produce, and end up selling at whatever price the market is willing to pay for the total industry output. For simplification purposes, firms have no fixed costs, and a constant MC and ATC.a. Complete the table. Quantity Price TR MR TC MC ATC Profit 0 $14 — 0 — — 10 $11 10 20 $8 20 30 $5 30 40 $2 40