If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the ruthenium industry in long-run equilibrium. per pound. At that price, firms in this industry the ruthenium market. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. O True O False
Q: Dividing the value of real GDP by aggregate labor hours gives Question 50 options: A) the rate of…
A: Gross domestic product, or real GDP, is a metric of a nation's economic production that accounts for…
Q: Over many years, small differences in growth rates can have large effects on the level of income.…
A: Gross Domestic Product (GDP) represents the total monetary value of all goods and services produced…
Q: Give one of your own observations to explain why US trade deficit persists
A: Note: Since multiple questions are asked, answering the first question only. If the 2nd question is…
Q: If the level of autonomous expenditures in the economy is $640 b, and the mpe = .8, what is the…
A: Marginal Propensity to Expand (MPE): MPE refer to the proportion of an additional unit of income…
Q: Suppose an economy is in long-run equilibrium. The central bank raises the money supply by 5…
A: AD-AS equilibrium: Aggregate demand refers to the total demand for commodities and services made by…
Q: 2. Suppose that there are 1,000 voters in your city. A total of 400 are willing to pay up to $25…
A: Introduction According to behavioral economics, willing to pay refers to the highest price at or…
Q: For the y axis, why is it labeled income and not consumption output
A: The IS-LM model is a macroeconomic model that shows the relationship between interest rates and real…
Q: 3. We-R-Food's, a restaurant consulting firm estimates that in the Southeastern United States a 10%…
A: The implied cross-price elasticity is a measure of the responsiveness of demand for one product to…
Q: Consider a perfectly competitive market where the demand for the good is given by Q=889-16p, where Q…
A: A perfectly competitive market is a market structure where there are many buyers and sellers, all of…
Q: Suppose that you’ve got $100 in a savings account earning 5% interest. How many years will it take…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: QUESTION 8 Every year for 10 years starting year 2, you deposit $2000 in a savings account that…
A: We must compute the total of the current values of each deposit in order to determine the present…
Q: Discuss the advantages and disadvantages of market globalization using Zambia as an example.
A: Market globalization is the process by which national economies are merged into a world economy by…
Q: You are interested in the effect of a new smoking restriction implemented by restaurants. That is,…
A: Given regression equation cigs=β0+β1educ+β2income+β3age2+β4restaurn+β5ln(cigprice)+μFrom the…
Q: The main incentive for an individual to start a business is usually A consumer demand. B C a profit.…
A: Any organization or economic entity that engages in the trade of goods or services with the…
Q: Which of the following is not a trade barrier? Group of answer choices A. Absolute advantage B.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: By moving from point A to point D, this nation is giving up Capital goods A A B C D E Neither Both B…
A: The PPC illustrates the concept of opportunity cost, which is the cost of one option in terms of the…
Q: A small open economy has a current account of zero. A fall in its investment demand balance causes O…
A: A small open economy's current account balance of zero means that its total exports and income from…
Q: Which of the following statements is not correct concerning government attempts to reduce the flow…
A: Let's first understand what's the meaning of drug interdiction. The interception of illegal drugs…
Q: Suppose the price of a good increased from $3 to $4. In response, the consumer has decreased his…
A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Q: Refer to the figure below and assume that the values for points a, b, and c(the combined value of…
A: A production possibility frontier depicts the combination of two goods that can be produced by using…
Q: If the Cross Elasticity of demand between two goods is Negative, then the two goods are goods.…
A: The elasticity of demand (E) depicts the responsiveness of the quantity demanded (Qd) of a good…
Q: Welfare impact of a voluntary export restraint for a small country 2005, dayal Loss in consumer…
A: Since you posted a question with multiple sub-parts, we will provide the solution to only the first…
Q: The graph shows the market for hamburgers, and the consumer surplus and producer surplus. What is…
A: Equilibrium in the market occurs at the intersection of demand and supply curves, where quantity…
Q: What is the difference between 'grim trigger' and 'tit-for-tat' in the context of the repeated…
A: The classic game theory illustration of the tension between individual and group rationality is the…
Q: The graph above shows an Engel curve for health (H) in (a) and an Engel curve for medical care (m)…
A: In this case, we have to discuss Engel curve. Engel curve is indicating the relationship between…
Q: Consider a society made up of three people-Dan (D), Erin (E), and Fred (F). The society must choose…
A: Libertarians: O > R > CConservatives: R > C > OProgressives: C > R > O…
Q: Predict the direction of change for either supply or demand in the following situations: Several new…
A: Since you have posted multiple questions with multiple sub-parts, we will provide the solution only…
Q: Suppose the initial change in spending is $12 billion. The indirect effects of that change cause a…
A: Given information: The initial change in spending is $12 billion. This initial change in spending…
Q: The cost of 5 mangoes and 3 kiwis at Miller Market is $9.45. The cost of 3 mangoes and 4 kiwis is…
A: Total cost is the cost of producing all the units. Total revenue is the product of price and…
Q: Using shifts in supply and demand curves, describe a change in the industry in which your firm…
A: While demand makes sense of the shopper side of buying choices, supply connects with the vender's…
Q: In response to an overheating economy, the federal government engages in _____ fiscal policy, which…
A: Overheating refers to the inability of the productive facilities to meet the aggregate demand.
Q: Suppose that you calculate the income elasticity of demand for ramen noodles to be 4. Based on this,…
A: Income elasticity is calculated as the percentage change in quantity divided by the percentage…
Q: Show the competitive firm in long run equilibrium and describe productive and allocative efficiency.…
A: A competitive market has the following features- number of sellers number of buyers firms are…
Q: Draw the graph for a monopoly earning a positive economic profit. Suppose the government institutes…
A: A monopoly market on the other hand is characterized by a single seller that produces goods that…
Q: Last month a record company sold 10,000 records at $5 each. This month it sold 11,000 records at…
A: Supply curve shows different levels of quantity supplied at different prices.
Q: Consider a firm withd> 0, under all the assumptions we made in class. If W_F (1 + d) > W_M, then the…
A: The discrimination coefficient is a numerical measure of labor market discrimination that captures…
Q: In 2013, Prussia's aggregate demand curve was determined by the equation M + = 8% A change in…
A: Aggregate demand is the total demand for goods and services in an economy over a specific period of…
Q: Suppose the government passes a new law that sets a limit on the interest rate that credit card…
A: A real interest rate that has been inflation-adjusted is used to indicate the cost and purchasing…
Q: 8) Consider the economy of Hicksonia. a. The consumption function is given by C=200+0.75(Y-T) The…
A: IS-LM framework: IS-LM model is widely used to denote the simultaneous equilibrium in product and…
Q: Suppose the market equilibrium wage is $12.00 an hour, and the minimum wage is currently $10.00 an…
A: The study of labour as a component of the manufacturing process is known as labour economics. The…
Q: Which of the following variables are not held fixed when drawing a market supply curve? O A.…
A: In economics, the market supply curve represents the full amount of a good or service that all…
Q: The business cycle is the economist's metric for describing the current state of the economy. How…
A: "Economic conditions" generally relate to the state of the economy at a certain period in time, as…
Q: In an economy, the banks prefer to keep 25% of their deposits in reserve. The population likes to…
A: Reserves refer to the funds that banks and other financial institutions are required to hold in…
Q: Probably the most important source of capital is human capital. For example, most medical doctors…
A: Human Capital: Human capital is an intangible asset or quality not involved in the balance sheet of…
Q: Short answer questions a) What are the differences between short run and long run in a competitive…
A: A competitive market is one in which numerous businesses compete for the same clientele by offering…
Q: 0 9. Economic fluctuations II The following graph shows the aggregate demand curve (AD), the…
A: The amount of all goods and services produced in an economy at all possible price levels at any one…
Q: Suppose that in a year Indonesia can produce either 50 million tonnes of petrol or 20 million tonnes…
A: Opportunity cost and comparative advantage: The value of alternative opportunities foregone and…
Q: 2. For this question use the HUI3 scoring system for the health utilities index. Assume a patient…
A: In health research and economic assessments, the Health Utilities Index (HUI) is a commonly used…
Q: In the free-market equilibrium of a perfectly competitive market, the price of the good is 90…
A: In a free-market equilibrium of a perfectly competitive market, the price of a good or service is…
Q: Banks are illiquid because their: Group of answer choices liabilities are greater than their…
A: Illiquidity refers to a situation where a bank or financial institution is unable to meet its…
Blank Options:
Blank One: (shut down, operate at a loss, earn a positive profit, or earn zero profit).
Blank Two: (enter, exit, or neither enter or exit).
Blank Three: (zero, positive, or negative).
Blank Four: (10, 20, or 30)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this industry would…Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for titanium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. If there were 20 firms in this market, the short-run equilibrium price of titanium would be $_______ per pound. At that price, firms in this…
- 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…Suppose you are hired as an economic consultant for Promax Consulting Company. Your job is to advise the company’s clients on the appropriate action to take in the short-run in order to maximize the profits (or minimize the losses) for each firm. The firms you are about to analyze produce different products, and each operates independently in a different perfectly competitive market. You may assume that each is currently operating at an output level where marginal cost is increasing. Fill in the missing information, and make your suggestions about the appropriate action for each firm by placing one of the following symbols in the last row of the table of information that follows: C = currently operating at the correct level of output I = increase the level of output D = decrease the level of output SD = shutdown the plant Firm A…Consider a perfectly competitive firm with a short-run total cost function given by TC = q2 + 100 where q is the level of output. The short-run marginal cost function is given by MC = 2q If the price of output is $60, how much output should the firm produce in order to maximize profit? Calculate the firm’s economic profit at this level of output Assuming that each firm in the industry has an identical cost function, is $60 a long-run equilibrium price for this perfectly competitive industry?
- Consider a firm that operates in a market that competes aggressively in prices. Due to the high fixed cost of obtaining the technology associated with entering this market, only a limited number of other firms exist. Furthermore, over 70 percent of the products sold in this market are protected by patents for the next eight years. Does this industry conform to an economist’s definition of a perfectly competitive market?Consider a competitive industry with a market demand curve of P = 120 - Q, where P is market price and Q is the quantity demanded in the market. In the short run there are 4 firms in the industry, and each firm has a total cost function of TC = 144 + q^2, where q is output of the individual firm. The short-run industry supply curve Qs is?Suppose you are given the following information about a particular industry: QD = 6500 – 100P Market Demand QS = 1200P Market Supply TC(q) = 722 + q2/200 Individual firm’s total cost function MC(q) = q/100 Individual firm’s marginal cost function Assume that all firms are identical and that the market is characterized by perfect competition. Find an individual firm’s supply curve. How many firms are there currently in the market? Find the equilibrium price and equilibrium market quantity. How much is output supplied by each firm, and how much profit does each firm make in the short run? Would you expect to see entry into or exit from the industry in the long run? Explain. What effect will entry or exit have on the market equilibrium? Find the long-run equilibrium price, the number of firms, and the amount of output each firm produces in the long run.
- 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?In a certain perfectly competitive market, there are 150 firms, and the short-run total cost function of each is given by Short Term Total Cost (q) = 3q³ - 16q² + 40q + 432 (note that "q" is the quantity produced by the firm). Besides that, any firm (active or potential entrant) can produce according to the total cost function Short Term Total Cost (q) = 2q³ - 16q² + 148q (desconsidering the entrance or exit of firms). Furthermore, the inverse aggregate demand function of this market corresponds to Pd(Q) = 676 - 0.56Q (which "Q" is the total quantity demanded). Based on this information, please check True or False in the arguments below: 1-The profit that each producer makes in the short-run competitive equilibrium is greater than the profit that each producer makes in the long-run competitive equilibrium. True or False? 2-In the long-term competitive equilibrium, there are 200 active firms in this market. True or False? 3-The price p* = 105 and the quantity Q* = 750 composes the…Suppose a firm operating in a perfectly competitive industry has costs in the short run given by: SRTC = 8 + ½q^2 and therefore MC = q. Assuming that the firm is a price-taker operating in a competitive market, derive an expression for the firm’s supply curve, (the profit maximizing output for the firm as a function of the market price, i.e., q^s = f(p). Assuming the firm is one of 100 identical firms in the industry, what is the short-run supply curve for the industry, i.e., Q^s = f(p)? If demand is given by Q^D = 1000 – 100p, what are the short-run equilibrium price, market quantity, and firm quantity? Is this a long-run equilibrium? [Hint: Calculate firm profit in the equilibrium.]