If the Long Run Price in a perfectly competitive market is 5 and the market demand is Q=50-P and if the LRMC cuts the LRAC at q=5 then the number of firms in the market is ...
Q: A common false argument for using tariffs to maximize national income and raise domestic living…
A: A tariff refers to a tax imposed on imports of goods and services from one country to another…
Q: Please refer to the figure below. The equation for p = 105-0.005D 25,000+65D W Y D (units sold) How…
A: Companies typically have two types of costs: fixed costs and variable costs, which add up to total…
Q: Emma and Mia are invited to two events A and B. They want to go to both events but are not on…
A: Given information 2 players: Emma and Mila 2 strategy : A and B when the go for same event get -8…
Q: In 1980, a Chinese woman would choose point F on IC7 and have 1 child over her child bearing years.…
A: Disclaimer: Since it is a multi-part question, I am providing you with the answer to the first four…
Q: Use the orange points (square symbol) to plot the Initial short-run industry supply curve when there…
A: Price Quantity Quantity of 10 firms Quantity of 20 firms Quantity of 60 firms 4 8 80 160 480 16…
Q: The goal of monetary policy is to O A. Set currency exchange rates B. Set money supply O C. Reduce…
A: Monetary policy refers to collection of measures that a nation's central bank may use to encourage…
Q: PlayStation 3 and XBOX 360 are substitutes. If the price of PlayStation 3 increases what will happen…
A: Two goods are substitutes when only one of them is consumed.
Q: 3) Assume that a firm which produces an output according to the following function is attempting to…
A: Given information Production function q=(0.5K0.5+0.5L0.5)0.5 P=16 W=1 V=1Profit maximizing…
Q: According to the table below, Change in Value (%), 1991–2001 Asset Stocks +250% Diamonds +71
A: Given information The change in value of gold between 1991 to 2001 is -29% The change in average…
Q: If there were 20 firms in this market, the short-run equilibrium price of titanium would be $ per…
A: As the minimum point of average variable cost, the marginal cost curve is reduced. The supply…
Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…
A:
Q: Governor Mitch Daniels advocates that the government intervene less in business to promote jobs and…
A: Supply-side Economics The macroeconomic view of supply-side economics is conservative and…
Q: Once you have this, you are considered a part owner of the company. O A. Stock О В. Bond O C. Profit…
A: Stocks are traded in the stock exchanges. These stocks are also known as the shares of firms.
Q: Describe and contrast market economies, planned economies and mixed economies.
A: Market economy :- A market economy is a type of economy in which the decisions regarding investment,…
Q: D7) Much of the growth in Southeast Asia is due to ________, and many African nations have based…
A: When comparing the economic growth of different nations, it can be seen that the drivers of economy…
Q: why does personal matter trip/travel has a high transport cost elasticity?
A: When talking about elasticity, it is the economic concept that is used to explain the responsiveness…
Q: 9. What policies would you recommend to the U.S. government to lower the current account deficit and…
A: The situation when the value of imports is greater than the value of exports is known as the current…
Q: Which best describes the decision criterion for implementing either a private or public project?…
A: Private Project : The Private project can be defined as any proposal which is primarily initiated or…
Q: 2) Assume a firm has the following production function 4 = K³L%¸ Assume w = 2, v = 16 and that K =…
A: In short-run, capital is kept fixed and labor can vary Profit maximizing quantity of labor occurs at…
Q: QUESTION 4 The following figure illustrates the demand and supply schedules for pocket calculators…
A:
Q: The following are correct about financial intermediaries, EXCEPT? * A. Financial intermediaries are…
A: In the financial markets, financial intermediaries are the firms or people, who act as the…
Q: A furniture maker currently produces 100 tables per week and sells them for a profit. She is…
A: Here, it is given that the furniture market is currently earning a profit and she wants to expand…
Q: why do economists and policy makers use perfect competition as a benchmark to analyze market…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: tight monetary policy is an indication that there is an on going or expected increase in the level…
A: In a tight monetary policy, the Fed's actions decrease the money supply, and in a loose monetary…
Q: Question 34 A perfectly competitive firm has the following cost structure per day: Output Total Cost…
A: A perfectly competitive firm is one of the many firms producing identical goods.
Q: A bank holds $10 for every $100 in deposits. The bank wants to hold $7 for every $100 in deposits.…
A: The reserve ratio is the proportion of reservable liabilities that commercial banks are required to…
Q: Define Asian Regionalism and,Globalization of Religion.
A: In general, regionalism is a phenomenon in international commerce in which states form organisations…
Q: Given that fixed cost -330 and varioble cost+120:the total varioble cost of producing 30 unts of…
A: The correct answer and explanation is as follows:-
Q: onsider the competitive market for steel. Assume that, regardless of how many firms are in the…
A:
Q: culate the inflation rate in sudan where the CPI in 2021 was 100 and CPI in 2021 is 150?
A: Inflation is the rate at which the value of a currency is falling and, consequently, the general…
Q: The table shows this year's nominal GDP and price level. If nominal GDP increases by 4 percent and…
A: Nominal GDP is the value of goods and services measured in current year market prices while real GDP…
Q: Consider an economy described by the following: T = $3 trillion = $1.3 trillion G = $3 trillion T =…
A: Aggregate demand is composed of consumption spending, investment spending, government purchases and…
Q: 9. Is bundling profitable? Suppose that Ginny is the owner of the only nonmotorized water sports…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Consider the Heckscher-Ohlin-Samuelson model for the US producing 2 goods (digital cameras and…
A: Eli Heckscher and Bertil Ohlin created the Heckscher–Ohlin model (H–O model), which is a general…
Q: monopoly is bad for society because: a. it increase profit for one b. it increases loss for all…
A: In monopolistic market there exists a single firm selling a good with no substitutes.
Q: A study of the effects of the minimum wage on employment of low-skilled workers estimated the price…
A: We have w2 = 7.75 and w1 = 7.25
Q: Year (in thousands) thousands) (in thousand 2000 282,434 142,583 5,692 2001 285,545 143,734 6,801…
A: given that, the labor force in 2009 is 154142 thousandths the labor force in 2017 is 160320…
Q: Mary Graham worked as a real estate agent for Piedmont Properties for 15 years. Her annual income…
A: Mary Graham revenue and cost from the given information, Revenue $2,000,000 Operating expenses…
Q: This problem examines the implications of allowing investment to depend on output. Suppose the…
A: Equilibrium output is determined where AE = Y
Q: Which of the following is TRUE about financial regulations? * A. Financial regulations makes the…
A: Financial Institutions are defined as those companies which deal in financial and monetary…
Q: In the country of Economica, the total labor force consists of 5,000 workers. 250 of these workers…
A: The labor force that is also known as the presently active population, is made up of all those who…
Q: Herd immunity is a negative health externality. O True O False
A: Externality refers to spill-over effect of a good on society who is not involved in either…
Q: QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a…
A: We have given that France can supply calculators to Greece at $30 per unit while Germany can supply…
Q: The cross price elasticity between a pair of complementary goods will be Select one: a.Zero…
A: Two goods are complements if they are consumed together.
Q: The goods markets of countries A and B are described by the following equations: C = co + c¡ (Y –…
A: Given C=c0+c1Y-T .... (1) I=b0+b1Y-d2i .... (2) G=G For country A: T=t0 For country B:…
Q: Which of the following is true about the sources of economic growth after the Civil War? a.…
A: Economic growth refers to the process through which a country's wealth increases over time. Although…
Q: Wiebe Trucking, Inc., is planning a new warehouse to serve the west. Denver, Santa Fe, and Salt Lake…
A: We find that Salt Lake City and Denver intersect each other at some quantity X. Before quantity X,…
Q: Demand is said to be inelastic if Select one: a. buyers respond substantially to changes in the…
A: Elasticity is a term used in economics to describe how the quantity sought or supplied changes in…
Q: (a) The hypothetical information in the following table shows what the situation will be in if the…
A: Fiscal policy means the expenditure that is incurred in constructing the roads, railways, and…
Q: Q2. Deposits are to be made to an account as indicated in the table below which bears interest at…
A: Given Interest rate = 10 % cashflows for 5 years therefore future worth of each cashflow = cashflow…
If the Long Run Price in a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=305-2P Suppose we have identical book publishers, and each individual book publisher's Supply curve is given by P=4+2Q. We have 13 book publishers in the market. What is the market PRICE?. Enter a number only.Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost function: TC = 4,500 + 2q + .0005q2 where TC is total cost in dollars and q is the quantity of output produced. a. Assume this perfectly competitive market consists of 800 firms with cost structures identical to the one above. What is the equation for the market supply curve? Assume the market demand curve is: Qd = 5,600,000 – 400,000P where Qd is the quantity demanded in the market and P is the commodity’s price in dollars. b. What is the market’s equilibrium price? c. Assuming the market is in equilibrium, using marginal revenue and marginal cost determine the firm’s profit-maximizing quantity of output? What does the profit-maximizing firm’s total economic profit equal? Assume the total cost function above: TC = 4,500 + 2q + .0005q2 is associated with the short-run total cost function that corresponds to the minimum point on the long-run average total cost curve and this is a…
- The cost function of the fringe firms is TC(q) = 4q, their total capacity is K = 2 units. The dominant firm has TC(q) = q. The market demand is Q(P) = 20 – 2P. What is the fringe supply? What is the profit maximizing price for the dominant firm? with expl plzSuppose all firms in a perfectly competitive market structure are in long-runequilibrium. Then demand for the firms’ product increases. Initially, price andeconomic profits rise. Soon afterward, the government decides to tax most (but not all) of the economic profits, arguing that the firms in the industry did not earn the profits. Rather, the profits were simply the result of an increase in demand. What effect, if any, will the tax have on market adjustment?The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=288+q^2 and Marginal Cost curve MC=2q. Market demand is Q=807-2P. If the Marginal Willingness to pay increases by $10 at every quantity, what is the short-run market price?
- A perfectly competitive industry has 150 identical firms. At a price of $8, the typical firm supplies 10 units of output, so the market quantity supplied is nothing units of output. (Enter your response as an integer.)Demand for microprocessors is given by P = 35 – 5Q , where Q is the quantity of microchips (in millions). The typical firm’s total cost of producing a chip is Ci = 5qi, where qi is the output of firm i. a) Does the typical microchip firm display increasing, constant, or decreasing returns to scale? What would you expect about the real microchip industry? In general, what must be true about the underlying technology of production for competition to be viable?Consider a competitive firm with a short-run cost function C(q) = 100q−q2 + 1/5q3 +450. (a) Suppose that the market price is $205. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (b) Suppose that the market price is $105. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (c) Suppose that the market price is $205 and there is a tax of $65 per unit produced. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why?
- The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned? As per your solution provided The profit is maximized: MC=MR=P C(Q) = 5+Q2 MC= dC/dQ = 2Q ...what is dC and dQ here??? and why dC/dQ = 2Q?? please assistDemand for microprocessors is given by P = 35 – 5Q , where Q is the quantity of microchips (in millions). The typical firm’s total cost of producing a chip is Ci = 5qi, where qi is the output of firm i. a) Under perfect competition, what are the equilibrium price and quantity?Consider a perfectly competitive market, where the current number of firms is 50. Each firm has one unit of capital and can product q(1, L) = √L units of output with one unit of capital at a cost v per unit, and L units of labor at a cost w per unit in the short-run. a) Find a firm's short-run supply curve, qs(p), and the industry short-run supply curve, Qs(p). b) Given the market demand, = 10000 - 50p, and the industry short-run supply curve, find the short-run equilibrium price and quantity assuming that w = 1.