If the average cost (AC) of producing a good is increasing as a firm produces more output (q), then which of the following must be TRUE? A) AFC is falling; AVC is rising; MC > AVC B) AFC is falling; AVC is falling; MC > AVC C) AFC is rising; AVC is rising; MC > AVC D) AFC is rising; AVC is rising; MC < AVC E) AFC is falling; AVC is falling; MC < AVC
Q: 5. When an employer's information indicates that two individuals have exactly the same productivity,...
A: In a market, when an employer hires a worker for specfiic activity, the wage rate depends upon vario...
Q: What are the four stages of the business cycle? Describe each stage.
A: Business cycle refers to ups and downs of the economic activityies.
Q: - A market structure in which many firms sell products that are similar but not identical is known a...
A: To find : What is market structure in firm
Q: A market consists of groups of buyers and sellers of a good or service. Market equilibrium represent...
A: The curve that depicts the various quantities of goods being demanded by individuals at various leve...
Q: Which of the following is a FALSE statement regarding a Perfect Competition market? There ar...
A: Characteristics of a Perfectly Competitive market: 1) Large number of buyers and sellers: There are ...
Q: In each part that follows, use the economic data given to find national saving, private saving, publ...
A:
Q: The following graph represents the demand and supply for pinckneys (an imaginary product). The black...
A: Equilibrium in the market occurs at the intersection of demand and supply curves, where quantity dem...
Q: A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue ...
A: In perfectly competitive markets firms do not have any market power so they take the price as given....
Q: EVALUATING TRANSPORTATION ALTERNATIVES USING ECONOMIC ALTERNATIVE METHODS: The Department of Traffic...
A: Given: Alternative Construction cost Annual saving cost in Accidents Annual time travel benefits...
Q: 4. Compute the percentage increase in real GDP from 2004 to 2005. a. 0 percent b. 7 percent c. 22 pe...
A: Real GDP is the value of all goods and services at the base year prices. Base Year is 2003 Real GDP ...
Q: hat were some decisions students had to make when they decided to start a business?
A: The activities which depict making money through the production and selling of products to consumers...
Q: Suppose a government program guarantees $ 2,000 a month in income, even for those who do not work at...
A: Yes the correct answer is : "While the goal may be to reduce poverty , people rarely respond to the ...
Q: The all-equity firm (it has no debt and so no interest expense) has shareholders who require 9% retu...
A: Profit is the reward for bearing the risk. Profit in common term is measured by finding out the diff...
Q: A Canadian manufacturer starts exporting its products to the United States of America. Which of the ...
A: Here, it is given that the Canadian manufacturer makes an export of its products to the US of Americ...
Q: At the point of equilibrium of firm (under perfect competition)
A: To find: What happens at point of equilibrium of firm.
Q: A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 w...
A: TR(TOTAL revenue) is the product of P(price) and x(quantity). TC(TOTAL cost) is the sum of fixed and...
Q: There are only two (equally-likely) states of nature in this economy: boom and bust, which are drive...
A: Equity beta is a measure of a stock’s systematic risk. It is estimated by comparing the sensitivity ...
Q: Which of the following is a tool of the Federal Reserve’s monetary policy? Group of answer choic...
A: The policy through which the central bank of the nation takes action for influencing the amount of c...
Q: (a) Calculate nominal GDP in each year. (b) Calculate real GDP in each year, and the percentage inc...
A:
Q: QUESTION 32 Which of the following is not a decision made within the context of the long run: a. the...
A: If the existing firm is making a profit in the short run, then the new firm will enter the market in...
Q: Which of the following statements is correct? A) To increase its profit, the firm always increases ...
A: Firms must establish wages sufficiently high to ensure that employees receive an employment rent in ...
Q: Suppose the production function for good q is given by q=3 ∙K+2∙ L where K and L are capital and la...
A: Returns to Scale The rate at which output varies when all inputs are altered by the same factor is r...
Q: What are two scenarios where the opportunity cost of improving your math grade will decrease?
A: Opportunity Cost : Opportunity cost is the potential benefits one misses out on when choosing an alt...
Q: Depreciation is included in GDP, but excluded from NNP, true or false.
A: This is because the net rise in the value of capital goods in a country over the course of a year is...
Q: From this information compute equilibrium price and quantity
A:
Q: Which of the following is a producer good?
A: To find : Which is producer good
Q: Briefly explain and graphically illustrate the property of diminishing margincal rate of substitutio...
A: The willingness of a consumer to substitute one good for another as long as the new good is equally ...
Q: If a monopoly firm sells a product with price $100, whose marginal cost is $30, what is the price/ m...
A: Please find the answer below.
Q: Describe aspects of environmental economics and ecological economics
A: Economics is a social It looks into how individuals, businesses, governments, and countries decide h...
Q: 53. The annual demand for Prizdol, a prescription drugmanufactured and marketed by the NuFeel Compan...
A: To simulate this problem, create a spreadsheet with the following values and formula: This will exa...
Q: Lx Give Up? E Feedback Try Again Question 36 of 36 > O Attempt 1 The graph describes the market for ...
A: Answer: If the cost of sugar (an important input of chocolate) increases then the cost of production...
Q: If actual output stays above potential output for some time, then we should expect. to rise and the ...
A: The goods market is in equilibrium where the aggregate demand and aggregate supply are equal to each...
Q: he market demand for a product is Q = 2500 – 400P - 0.11, where P i ne price per unit of a product, ...
A: The marginal revenue refers to the change in the total revenue one additional unit of output is sold...
Q: If the inflation rate is 2 percent, interest rates are 8 percent, and GDP is growing at 3 percent pe...
A: Inflation rate is the rate at which price level is increasing.
Q: Investors may view the euro area with suspicion because one of its member's public debt increases dr...
A: The outflow or the inflow of a currency depends upon its relative strength in the international mark...
Q: You own a printing firm. Two of your senior managers provide you with advice. The first manager stat...
A: The process of combining multiple material and immaterial inputs (plans, know-how) to generate a con...
Q: Profit is maximum when
A: To find : Condition for profit to be maximum.
Q: The table above gives hypothetical figures for the U.S. balance of payments. The country’s current-...
A: Current account records transaction of import and export of goods and services, unilateral transfers...
Q: If a competitive firm finds that its average variable cost is decreasing at its current profit maxim...
A: There are many buyers and sellers in the perfectly competitive market. Single firm can not influence...
Q: Solve step by step in digital format If the slope of the total income curve is given by 12-13q and ...
A: TI curve= 12-13q P=6 q=4
Q: The following figure represents the situation before and after trade openness of a domestic country ...
A: Given the PPC for the home country, we can see that the production takes place where the value of pr...
Q: 9. A soot spewing blacksmith producing steel S is located near a laundry where clean clothes are hun...
A: The output of the blacksmith is given by, MCS=PS⇒2S=40⇒Snc=20 If the cleaner equates MC to price, MC...
Q: Ceteris Paribus means
A: To find : What is ceteris paribus
Q: . As output increases MC curve initially falls and then rises
A: To find : What happens when output increases.
Q: 2. Suppose demand and supply are given by Qd, = 7-, and Qs =P- a. Determine the equilibrium price an...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: Who pays the federal unemployment tax and the state unemployment tax
A: The State Unemployment Tax Act, or SUTA, refers to state-level taxes; however, the Federal Unemploym...
Q: Why might a firm have monopoly power even if it is not the only producer in the market?
A: The ability of a company to set the Price of a product is known as market power. Monopoly power is a...
Q: Which of the following are reasons that market prices might not reflect true social costs? O Monopol...
A: As we know that market price is determined by the market forces of demand and supply and it's intera...
Q: A. Consider that you're the manager of a competitive firm, KKL INC. with the following short run cos...
A: In short run the firm will try to recover only Variable cost it means their price must equal to the ...
Q: Labor (workers) Output (frijoles) Total cost (dollars) 0 0 1,000 5 1000 3,000 10 3000 5,0...
A: ATC(average total cost) is found by dividing the TC(total cost) by Q(quantity).
15) If the average cost (AC) of producing a good is increasing as a firm produces more
output (q), then which of the following must be TRUE?
A) AFC is falling;
B) AFC is falling; AVC is falling; MC > AVC
C) AFC is rising; AVC is rising; MC > AVC
D) AFC is rising; AVC is rising; MC < AVC
E) AFC is falling; AVC is falling; MC < AVC
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Let say you have 3 products: cake, candy, and bread. The revenue per cake is $8. The revenue per candy is $4. The revenue per bread is $5. Define the number of cake, candy, and bread you are about to produce per day as x, y, and z respectively. The manager wants that the number of candy is at least equal to the total number of cake and bread. What is the correct linear constraint to show this? Group of answer choices z – x – y ≥ 0 x – 2y – z ≥ 0 y – x – z ≥ 0 x – y – z ≥ 0A company is planning to manufactureand market a new two-slice electric toaster. After conducting extensive market surveys, the research department provides the following estimates: a weekly demand of 200 toasters at a price of $16 per toaster and a weekly demandof 300 toasters at a price of $14 per toaster. The financial department estimates that weekly fixed costs will be $1,400and variable costs (cost per unit) will be $4. a)Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b)Using your knowledge from Finite Math, determine the Revenue functionin terms of ?. c)Determine the Marginal Revenu eat 2 different production levelsfor example 350 and 600 units. Interpret these results.(HINT: Consider what a positive or negative first derivative implies) d)Assume that the cost function is linear. Use the financialdepartment’s estimates to express the cost…The variable x represents the number of HDTVs manufactured and sold in a given month. The variable p is the price charged when you sell a TV. A demand curve is given by p = 660-3x. Assume you must pay salaries totalling 8000$ in a month. Also, it costs $110 to manufacture one TV. Graph the profit function, M(x)=550x-3x²-8000, and using the Maximum program, find the maximum possible profit and fill in the details (round off x to the nearest whole number): number of sales:
- What happen to salaries and wages when you are in a production/manufacturing business that you want to operate on and on for many production cycles? a. it will either be a variable and/ or fix cost b. it becomes fixed cost c. It becomes variable cost d. it is an operating expense When there are 3 indifference curves in a graph, what ideal point is desired? a. a point where budget and satisfaction coincides with each other b. a point that is within the highest budget line c. point that is within the highest indifference curve d. the point where there is satisfaction yielded An example of business that is servicing a captive consumers as there is an absence of choices to serve them. a. Duopoly b. Monopsony c. Monopoly d. OligopolyIke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) NOTE: the options for the blank question is this Suppose Ike's Bikes is expecting to produce 500 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using _______ (once factory OR two factory OR three factory)(a) Shows the cost of producing any level of output. (b) Is a technological relationship between factors of production and output. (c) Expresses the least-cost method of producing a given level of output. (d) Expresses our ability to produce various combinations of goods, using all of our resources. (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is fixed. (c) the size of the production plant is variable. (d) some resources are fixed and others are variable. (10) The law of diminishing returns states that: (a) as a firm uses more of a variable resource, given the quantity of fixed resources, the average product of the firm will increase. (b) as a firm uses more of a variable resource, given the quantity of fixed resources, marginal product of the firm will eventually decrease. (c) in the short run, the average total costs of the firm will eventually diminish. (d) in the long run, the…
- Apply the cost-volume- utility model for the graphical and mathematical definition of the equilibrium point. A company dedicated to the manufacture of its only product, a waterproof bluetooth speaker, presents the following information: Annual fixed costs: $1,500,000 Variable costs per unit: Housing: $20.- Buttons: $5.- Card: $10.- The sale price is calculated based on a desired marginal contribution of 60%. Draw up the corresponding graph.Economics Apply the cost-volume- utility model for the graphical and mathematical definition of the equilibrium point. A company dedicated to the manufacture of its only product, a waterproof bluetooth speaker, presents the following information: Annual fixed costs: $1,500,000 Variable costs per unit: Housing: $20.- Buttons: $5.- Card: $10.- The sale price is calculated based on a desired marginal contribution of 60%. Calculate the equilibrium point in units and weights of the company, Draw up the corresponding graph, Prepare the status of results as a check. BEconomics Apply the cost-volume- utility model for the graphical and mathematical definition of the equilibrium point. A company dedicated to the manufacture of its only product, a waterproof bluetooth speaker, presents the following information: Annual fixed costs: $1,500,000 Variable costs per unit: Housing: $20.- Buttons: $5.- Card: $10.- The sale price is calculated based on a desired marginal contribution of 60%. Calculate the equilibrium point in units and weights of the company, Draw up the corresponding graph, Prepare the status of results as a check.
- The demand and supply for a whole pizza in Mr Hot’s Market are given by the equations, Qd = 6,300 – 530P and Qs = 1,200 + 150P. What is the Statement of the Problem?If a firm's marginal cost is greater than its average variable cost, what can be inferred about the firm's production decisions? a) The firm should increase production b) The firm should decrease production c) The firm is operating optimally d) The firm should shut down temporarilyA firm has the production function F(L, K) = L^1/2 + K^1/2The price of labor is $10 and the price of capital is $15. The firm has a production goal of Q = 100 units ofoutput.a) Neatly specify this firm’s cost minimization problem, using the particulars associated with this problem.b) Give two equations that an interior solution satisfies, tailoring your equations to the particulars of thisproblem.c) Solve the two equations for the firm’s optimal choice. Show your work.