Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product? A. dresses B. thread C. sewing machines

Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product? A. dresses B. thread C. sewing machines

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 8P

See similar textbooks

Related questions

Q: P. a, o, Quantity Demanded Refer to the diagram. In the PP price range, demand is Price

A: Elasticity is the degree of responsiveness of demand with respect to the change in the price of the ...

Q: Explain what researchers have found on the costs and benefits of inflation?

A: Inflation is defined as the increase in the prices of goods and services in the economy over a perio...

Q: In November 2021, the US Congress passed the US$1.2 trillion infrastructure Investment and Jobs Act....

A: To explain the outcomes of above policy measures we use Mundell-Flemming model which is also known a...

Q: What is the CPI inflation rate from 2020 – 2021 and 2021 - 2022? What does it mean?

A: CPI Inflation Rate : Inflation measured by consumer price index is defined as the change in the pri...

Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000...

A: "Accounting profit is obtained by deducting explicit costs (these costs represent the expenses of th...

Q: You are an accountant for a manufacturer of radios. The demand function for the tablets is p = 40 – ...

A: Given the demand function, p = 40 – 4x2 Cost = $15 per tablet

Q: Average Fixed Cost Average Variable Cost 0.00 S Average Total Cost 0.00 105.00 $ Total Product Margi...

A: We know that the supply curve is the rising portion of the MC curve, which is over and above the ave...

Q: What three factors determine whether two economies with separate fiscal and monetary authorities sho...

A: To facilitate trade between the United States, Canada, and Mexico, the North American Free Trade Agr...

Q: In the United States, the dollar is backed by silver. backed by gold and silver. backed by Bitcoin. ...

A: A currency is backed means that a commodity backs or supports, like gold or silver. It means the cur...

Q: You are a consultant at Brinkley & co .you are responsible for evaluating projects introduced by sur...

A: Initial Investment = 35000 Return = 10000 (for the next10 years) Time = 10 years MARR = 12%

Q: Which of the following data would be analyzed to determine whether any shift in the MPI has occurred...

A: The MPI is a metric that evaluates initiated utilization, the idea that the expansion in private con...

Q: On the following graph, use the orange points (square symbol) to plot the nominal Interest rates for...

Q: Adam Smith would have been a proponent of goavernments manipulating their currency. O True O False

A: Adam smith believed that the government should not interfere in free market. Smith believed that ...

Q: A company's second year operations can be summarized as follows: Revenues: $110 000 Expenses (except...

Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...

A: Q=423-2P2P=423-QP=423-Q2P=211.5-Q2Now,TR=P×QTR=(211.5-Q2)QTR=211.5Q-Q22Thus,MR=∂TR∂QMR=211.5-Q

Q: 2. Consider an insurance salesperson who plans to visit 10 randomly selected families today. The out...

A: Answer) Given : n = 10 , total number of random selected families p = probability if the ...

Q: Given the Aggregate Expenditure schedule for Country A below. Calculate national income and net capi...

A: Answer: Y=C+I+G+X-MY=34,141+17,926+9,042+36,872-26,812Y=71,169 Now, Net capital outflow = X - M or ...

Q: A. EXPLAIN BRIEFLY THE FOUR APPROACHES TO ECONOMIC DEVELOPMENT. B. WHICH OF THE DIFFERENT THEORIES O...

A: Note:- Since we can only answer one question at a time, we'll answer first three. Please repost the ...

Q: Question 2 Suppose that an economy has the following average annual growth rates of its real GDP Y, ...

A: Money supply (M) in an economy is equal to the nominal GDP divided by the velocity (V), where nomina...

Q: With its new global mobile phone service, Ultra Mobile offers the following price schedule: Your fi...

A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the ac...

Q: Identify a monopoly that you have recently consumed. Explain why you selected it as a monopoly and m...

A: Answer: We are granted a computer project recently and that the few stationary including gums are ...

Q: What is the difference between macroeconomics and microeconomics?

Q: Why is scientific literacy is important? Answer can be related to decision-making, economic producti...

A: There is a type of government which is known as communist type of government. In this type of govern...

Q: TABLE 8-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TF...

Q: QUESTION 10 Which mechanisms does the Federal reserve have to influence the money supply? O open-mar...

A: The central bank's policy of using policy instruments to control the money supply in the economy is ...

Q: Situation: 75% of voting shares are held by charitable institutions that are headed by the CEO of a ...

A: Voting shares are shares that give the shareholders the right to vote on specific decision of the or...

Q: 1. You have a choice of getting a degree in economics, computer science or neither. Either degree de...

A: Answer - Thank you for submitting the questions but, we are authorized to solve one question at a ti...

Q: In a small open economy, output is $25 billion, government purchases are $6 billion, taxes are $5 bi...

A: Given Y=$25 billion Government purchases G=$6 billion taxes T=$5 billion C=2+0.6(Y-T)

Q: Reter to the graph to the right Atal in the domestic price level n desired consunption and private s...

A: Aggregate Expenditure = Household consumption + Gross investment+ Government spending + Net exports

Q: QUESTION 11 Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its ...

A: According to rule 70,Doubling time=70iwhere,i=annual growth rate

Q: impact of russia-ukraine war on oil prices.

A: Russia-Ukraine war is a war of aggression which is considered as one of the biggest conflicts in Eur...

Q: The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton. ...

A: An average quantity of gold per ton= 0.5grams 1st method:- Processing costs= Php1650 per ton It reco...

Q: a) What types of targeting in Monetary Policy we have nowadays? Discuss the Taylor Rule.

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...

Q: A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges est...

Q: yeglasslux is a single-price monopolist in the eye-glass rame market. It faces a Market demand given...

A: The Profit is maximized where the MR=MC. The monopoly has market power and thus, firm in monopoly fi...

Q: need help wity these two thank you!!! Ys Prices $6 $5 $4 12 14 15 $7 16 15 13 11 13 $6 19 16 14 $5 1...

A: Answer -

Q: factors which could have an impact on the demand and supply ofvoil in the near term. whether on ba...

A: When product and service is manufactured all around the world, cost takes place and process of busi...

Q: 6) Two annuitics in perpetuity have the same effective annual interest rate. The first annuity pays ...

A: Given that; Two annuities in perpetuity have same effective annual interest rate. The first annuity ...

Q: An engineer promised to pay 36,000 at the end of 90 days.He was offered 10% discount if he pays in 3...

A: Given; Amount he promised to pay= 36000 Number of days= 90 days Discount offered in 30 days= 10% Amo...

Q: Suppose Interest rates are 3 percent in Japan and 6 percent in Canada. The current value of the exch...

A: The exchange rate (Yen per dollar) rises from 110 to 106.7. It is supposed to rise further to 110 du...

Q: Determine the present worth of the following cash flows based on an interest rate of 7.43% per year ...

A: Present worth is the method that expresses a measure of cash today is worth more than that equivalen...

Q: CAPITAL BUDGETING can be most accurately defined as which of the following? O A. The process during ...

A: Capital budgeting is a process that is used by businesses for the evaluation of major projects or in...

Q: reflect on how international trade models apply to current trade relate issues globally and within s...

A: International trade is the transfer of capital, goods, and services across international borders or ...

Q: What is marginal revenue? the addition to total revenue from selling one more unit of output the add...

A: MR is the expansion in revenue that outcomes from the offer of one extra unit of result.

Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...

A: Answer: Given, Demand function:Q=193-3PTotal revenue TR=P×QTR=193-3P×PTR=193P-3P2Let us derivate the...

Q: If x items of a commodity are sold to a wholesaler, the price per item is 500 − 2x − 0.1x2 dollars. ...

A: Introduction It has given that x is no. of item sold to a wholesaler. Price of per item is = 500 - 2...

Q: TRAIN law lessen or worsen poverty and income inequality in the country of Philippines? How will the...

A: 1) Will the TRAIN law decreases or worsen poverty and income inequality in the nation of Philippines...

Q: Suppose that the price of apples increases by 10%. Within a short amount of time, apple producers ar...

A: Elasticity of supply helps the producers in determining the production levels. It also explains how ...

Q: Apply the IPAT model to the example of China provided in the chapter. How do population, affluence, ...

A: IPAT model is for sustainability, and it stands for the model equation that connects sustainability ...

Q: Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand giv...

A: Total revenue is the product of price and quantity. Revenue is maximized when marginal revenue is ze...

Question

Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product?

A. dresses

B. thread

C. sewing machines

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Q2. Ramzah owned a burger stands along the beach. Figure 2 shows Ramzah’s cost curves. Figure 2: Market for Burger (a) What is Perfect Competition? (b) If the market price of a burger is $4, what is Ramzah’s profit-maximizing output? (c) Calculate the economic profit that Ramzah’s makes. (d) With no change in demand or technology, how will the price change in the long run? (e) Distinguish between technological efficiency and economic efficiency.
Imagine you're owner of domino pizza. How would to maximize store's profit ?
With the aid of a diagram explain normal profit
In reference to the attached chart, I was supposed to calculate the bundle prices and net profits. I got assistance, and here is the feedback: The Satisfying Smoothie's net profit is 10.00 - 5.00 = 5.00. The Hydration Power Drink's net profit is 7.00 - 3.00 = 3.00. How is the net profit for Hydration Power Drink 3.00, when 7-3= 4? And Why would it be 7-3, and not 7-6?
There are no long run econoic profit in monopolistic competition although there may be economic profit in the shprt run. Do you agree? Explain using Illustrations
Are Shoppe and Lazada considered as a perfect competition? Why do you think that is?
In the diagram below, profit is maximized at point ( give a short reason for the answer if possible) a. A b. B c. C d. D
a. John operates a firm producing t shirts. There are many such firms producingidentical products to John. What market structure is this? Is it possible for John tomake a profit in the long run? Illustrate using an appropriate diagram. b. John decides to innovate his business and begins printing t shirts with customercreated content. Will John be able to make a profit in the short run and the longrun? Explain using relevant diagrams and comment on the implied market c. Provide a strategy for John to make greater than normal profits in the long run. Isthis likely to be the case in the market for this good?
Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to show both the firm and the industry graphs) What happens over-time, if many firms are earning economic profits? Is this good or bad for consumers? Explain. Note: don't use chat gpt
Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only] If the market turns into a Monopoly market again, what will be the total deadweight loss created? [ Answer in Numerical value only]
Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
Use Table A below and calculate ATC, Profit, marginal revenue and marginal cost at each quantity of output - keep your calculation for follow up questions: Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 1 $1,700 $1,700 $2,000 2 $1,650 $3,300 $2,800 3 $1,600 $4,800 $3,500 4 $1,550 $6,200 $4,000 5 $1,500 $7,500 $4,500 6 $1,450 $8,700 $5,200 7 $1,400 $9,800 $6,000 8 $1,350 $10,800 $7,000 9 $1,300 $11,700 $9,000 a. Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 $0 -$1000 $0 $0 1 $1,700 $1,700 $2,000 $2,000 -$300 $1,700 $1,000 2 $1,650 $3,300 $2,800 $1,400 $500 $1,600 $800 3 $1,600 $4,800 $3,500 $1,166.66 $1,300…