If columns (1) and (3) of the demand data shown are this firm's demand schedule, the profit-maximizing price will be Multiple Choice O $10.00. O $9.00. O $11.00. O $12.00.
Q: On June 23, 2016, citizens of the United Kingdom voted in favor of a referendum to leave the…
A: The exchange rate in economics refers to the price of one country's currency in terms of another…
Q: 3. Wei Electric, which manufactures brush dc servomotors, budgeted Php 75,000 per year to pay for…
A: Tacozza Electric budgeted per year = 75000 n = 5 years Company spend = 15000 r = 10%
Q: t does the Long Run Average Cost curve depict? a) It depicts the relationship between Average…
A: Average cost of production is the per unit cost of production. AC = TC/Q The minimum efficient scale…
Q: Which of the following statements regarding government fiscal policy are correct? Assume ceteris…
A: The debt-to-GDP ratio is a measure that compares a country's national debt to its gross domestic…
Q: Yvette can read 40 pages of econo Use the blue line (circle symbol) t-
A: A production possibility curve depicts the combination of two goods that can be produced using the…
Q: One of the consequences of a rent ceiling set below the equilibrium rent is a. the elimination…
A: In economics, rent refers to the difference between the amount a factor of production earns over and…
Q: blue line), through age 34. Use the grey quadrilateral (star symbols) to shade the area representing…
A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Q: Explain how Macroeconomics course helps you better demonstrate the value of studying Microeconomics…
A: Microeconomics deals with the individual agents if the economy. It includes the consumer demand,…
Q: Why is the shape of the aggregate supply curve important to the Keynesian-monetarist controversy?…
A: Aggregate supply shows the amount of total output that the firms in an economy will produce and sell…
Q: Consider an exchange economy with finitely many consumers I and n > 1 goods. Let Z := R¹ and X = Z x…
A: (a) To show that a surplus-maximizing allocation r is Pareto optimal, we need to show that there…
Q: Tax Incidence and Efficiency The market demand for a product is Q-270-6P, and the market supply is…
A: Equilibrium refers to a state of balance or stability in a system where there is no tendency for…
Q: A new solid waste treatment plant is to be constructed in Washington County. The initial…
A: To calculate the capitalized cost, we must calculate the PW of one cycle of investment and the the…
Q: K Matt's candle factory rents equipment for making candles and hires students Matt pays $140 a day…
A: Total cost is the sum of fixed cost and variable cost. Variable costs are the cost that changes…
Q: holds. is the quantity other goods" and F is the quantity of food purchased. Using the vertical axis…
A: A budget line is a graphical representation of the possible combinations of two things that a…
Q: A monopolist knows there are two customers with different demand curves for two differently sized…
A: Before second degree price discrimination, the monopolist would charge the same price to both…
Q: Which of the following is true about a monopoly? Question 5 options: It is the only firm in the…
A: When there is only one firm in the market, it is referred to as a monopoly. In a monopoly, the firm…
Q: Identify the false statement. a) As output increases the difference between a firm's average total…
A: Production is an important term in microeconomics because it involves the conversion of inputs into…
Q: All countries have a variety of different methods of allocating resources.
A: Sustainable resources are resources that can be used in a way that does not deplete them over time.…
Q: Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations…
A: First-degree price discrimination, often referred to as perfect price discrimination, is a pricing…
Q: would forgiving student loan help or hurt the economy
A: Loan forgiveness to the student means the removal of a student's obligation to repay a portion or…
Q: Use the hypothetical market for rechargeable batteries illustrated in the accompanying graph to…
A: Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a…
Q: Parks confer many external benefits on society: open space, trees that reduce pollution, and so on.…
A: Externalities refer to the effects of an economic activity that spill over onto third parties who…
Q: Sleek Sneakers Co. is one of many firms in the market for shoes. Show the effect that positive…
A: In a competitive market , There exists a large number of buyers and sellers There is free entry…
Q: Q7. Competition, oligopoly, monopoly, Nash equilibrium, subgame-perfect Nash equilibrium, and…
A: Consumer surplus is a measure of the economic welfare or satisfaction that consumers derive from…
Q: Real wage 0 B N₂ Figure C. a) At C, firms can increase their profits by raising their price.…
A: Aggregate demand is defined as the total quantity of goods and services that all the sectors of the…
Q: Why do markets fail to provide public goods? OA. Public goods are rival, so the government must…
A: A public good is a type of good that is both non-rivalrous consumption by one person does not reduce…
Q: 5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and muffins.…
A: The prices and quantities used to calculate nominal GDP are those from the year in question. Prices…
Q: Discuss the work in the field of neuroeconomics. Who are the leading thinkers? What are they telling…
A: Neuroeconomics is an interdisciplinary field that aims to understand how the human brain processes…
Q: Suppose that two clothing manufacturers, Lands’ End and L.L. Bean, are deciding what price to charge…
A: The fundamental idea of Nash equilibrium in game theory is used to forecast how businesses will…
Q: For the economy described below: C = 2,800 +0.75(YT) IP = 1,800 - 12,000r G = 2,000 NX = 0 T = 3,200…
A: We have C = 2800 + 0.75 ( Y - T ) - 12000r = 2800 + 0.75 ( Y - 3200 ) - 12000r = 2800 + 0.75Y -…
Q: Suppose that for every increase in the interest rate of one percentage point, the level of…
A: John Maynard Keynes devised the AD-AS model to explain changes in the economy's production and price…
Q: Please, I need an answer for question d) Thanks
A: Cournot equilibrium is the Nash equilibrium
Q: Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its…
A:
Q: 3.a. With the help of suitable diagram discuss about planning curve.
A: Think if a firm has a choice of varying a plant by infinitely small gradations promotes infinite…
Q: What is an excise tax?
A: the suitable answer is: "Taxes applied to specific goods or services as a source of revenue."An…
Q: Suppose the production function is given by Q = 2K + 6L. What is the average product of labor when 3…
A: The average product of labor is the total product divided by the number of labor employed. APL=QL
Q: uppose the demand function is given by Qxd = 4Px−0.5 Py-0.45 M-0.2 H. Then good X a.is a substitute…
A: If good X is a substitute for good Y then the cross-price elasticity of good x is positive. If…
Q: Real Wage (W/P) 7.000 6.500 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 0.500…
A: Okun's law explores the factual connection between a country's joblessness rate and the development…
Q: Which of the following may be an advantage of buying a part instead of making it? O Economies of…
A: The advantage of purchasing a part instead of making it is that "buying from suppliers ensures a…
Q: 30 10 B 60 50 20- 80 R 97 S 10 15 20 25 30 35 Supply Demand 40 Quantity Refer to Figure 9-24.…
A: The difference between the maximum product price customers are prepared to pay and the price they…
Q: What is the marginal physical product for Jenny to go from one to two workers? Answer here
A: Marginal Physical Product (MPP) is a concept used in economics to describe the additional output or…
Q: Question 2: Consider a monopoly with marginal cost function given by: MC(Q)=3Q+20. It faces an…
A: A monopoly is a market structure in which there is only one seller of a product or service that has…
Q: Given a = 675, b = 0.2, Io = 375, Go = 150, Mo = 200 and m =0.4, find the equilibrium level of…
A: Given information: a = 675, b = 0.2, Io = 375, Go = 150, Mo = 200 and m =0.4 The objective is to…
Q: The Federal Reserve has decided to sell treasury bonds on a regular basis over the next few weeks.…
A: The tool being used by the Federal Reserve in this scenario is open market operations (OMOs). OMOs…
Q: If the US experiences a recession, what will happen to the price of its imports Select the correct…
A: A recession is a significant decline in economic activity that lasts for a prolonged period. It is…
Q: expansionary monetary policy, it can retum the economy to its original inflation rate and original…
A:
Q: A company estimates that the total revenue, R, in dollars, received from the sale of q items is ? =…
A: The revenue function is given by: R(q) = 3000 + ln(1 + 1000q^3) Taking the derivative with respect…
Q: Suppose that the marginal benefit of writing a contract is $400 and the marginal cost of that…
A: It is given that the marginal benefit of writing a contract of length to be $400 and marginal cost…
Q: Match the development on the graph to the macroeconomic process that it represents. slide along the…
A: IS curve represent the good market equilibrium where aggregate demand is equal to aggregate supply.…
Q: Consider two countries, the United States and Japan, that trade with each other. Suppose that the…
A: An exchange rate refers to the value of one currency in terms of another currency. It can be either…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomacs closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. What is the arc cross elasticity of demand between Potomacs oven and the competitive Spring City model? Would you say that these two firms are very dose competitors? What other factors could have influenced the observed relationship? If Potomac knows that the arc price elasticity of demand for its ovens is 3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?Discuss the importance of price elasticity of demand, income elasticity of demand and cross price elasticity of demand to a sales manager selling soft drinks like Coca Cola If a firm faces the Marginal Cost schedule MC = 180 + 0.3Q2 and the MR schedule is MR = 540 = 0.6Q2 and that Total Fixed costs are $65. What is the maximum profit it can make? Assume that the second-order condition for maximum is met
- Asap Firm A works in a competitive market and earns 0 profit for the profit-maximizing quantity level. Cost function of the company is: TotalCost=3Q2-10Q+300 a- Find the price and quantity values for the profit-maximizing level. b- Let’s assume that the fixed cost increases to 500. Would you shut down or not the company (based on rationality)?Many companies start with cost to determine price since revenue must cover cost for the firm to make a profit. True FalseBavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q where Q is the number of wine decanters produced annually. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What is the marginal revenue at 40,000 units? If Bavarian Crystals is currently producing 40,000 units would you recommend they increase their production?
- Royersford Knitting Mills, Ltd. sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $10 each. Fixed costs $60,000, and total variable costs equal $120,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand is estimated at -2. Evaluate the impact of the proposal to cut prices on (1) total revenue, (2) total cost, and (3) total profits. If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.A firm has fixed costs of $80,000 associated with the manufacture of lawn mowers that cost $200 per mower to produce. The firm sells all the mowers it produces at $300 each. Find the cost, revenue and profit equations. Find the break-even quantity. (Let x be the number of mowers.)C(x) = R(x) = P(x) = break even quantity mowersYou own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
- Lentz's Incorporated sells paper in a perfectly competitive market at a price of $2 per ream. At the profit-maximizing (cost-minimizing) level of output, average total cost is $2.50 per ream and average variable cost is $1.95 per ream. Should the firm continue to operate in the short run?A perfectly competitive firm sells its product at a price of$0.10 per unit. Its total and marginal cost functions are: TC= 5 - 0.SQ + 0.001Q2 MC= -0.5 + 0.002Q, where TC is total cost($) and Q is output rate (units per time period). Solve for the profit maximizing quantity for this firm. My Question: in order to determine just profit maximizing quanitity, do we make MR=MC so the equation would be 0.10 = -0.5 + 0.002Q. Solve for Q then plug that number into the Q in the total cost equation to get the profit maximizing quantity?Q2: Derive theoretically and graphically the supply curve of an industry.