If your product/ service saves a customer $150 per week but the competition is selling a nearly identical product/service of $50, what is maximum you will be able to charge for your produce/ service? Group of answer choices $25 $150 $100 $50
Q: Examine the following table and answer the following question: How do the changes of the economic…
A: Gross Domestic Product (GDP) is defined as the final value of all goods and services produced in an…
Q: The firm Old Tyme Bakery generates $191,000.00 of revenue in a market that generates $584,000.00 of…
A: Given information: The firm Old Tyme Bakery generates $191,000 in revenue The market revenue is…
Q: Describe the steps you will take to create your financial plan and budget
A: We show the The first step is to define and agree on your financial goals and objectives. A…
Q: If the marginal propensity to save is 0.15 in an economy, a $15 billion rise in consumption spending…
A: Multiplier = 1/MPS MPS is the marginal propensity to save. Change in GDP = Multiplier × change in…
Q: Lentz's Incorporated sells paper in a perfectly competitive market at a price of $2 per ream. At the…
A: There are large number of buyers and sellers in the perfectly competitive market. Single firm can…
Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KLO) a)…
A: In the study of economics, production functions represents the relationship between the quantity of…
Q: If a firm is producing a given level of output in a technically-efficient manner, then it must be…
A: When talking about technical efficiency, it can be said that it describes the relationship between…
Q: Suppose that a firm that produces face masks is in a long-run equilibrium setting where it has 3…
A: The marginal rate of technological substitution (MRTS), a concept in economics, is the rate at which…
Q: How is Gross Domestic Product (GDP) measured: A. by counting the nation's expenditures on all final…
A: GDP refers to the production of goods and services during an accounting year. GDP does not includes…
Q: In the perfectly competitive car production industry, General Motors produces 40,000 sedan cars for…
A: Given, In the perfectly competitive car production industry Total cars produces (Q) = 40,000 sedan…
Q: In an economy, the currency drain ratio is 0.38 and the desired reserve ratio is 0.02. Calculate…
A: Money multiplier is the no. that shows how many times the money is multiplied. The formula of…
Q: Consider a standard Solow-Swan model. A permanent increase in the level of total factor productivity…
A: Solow-Swan Model is defined as an exogenous model of economic growth in the long run. It states that…
Q: Kyoko and Rina are considering contributing toward the creation of a public park. Each can choose…
A: Public Goods: The welfare of Public Goods cannot be kept from nonpaying members of a community. This…
Q: Given the following demand equation: Qxd=68-0.8Px + 0.005M+ 1.7Py - 3.4Pz; where: Qxd is quantity…
A: Qxd=68-0.8Px + 0.005M+ 1.7Py -3.4Pz where Qxd is the quantity demanded for good X, Px is, the price…
Q: In an economy, savings deposits are $10,000 billion, currency is $1,500 billion, checkable deposits…
A: M1 includes Currency and checkable deposit. M2 includes M1 , saving deposits, other deposits and…
Q: What is the private cost at the market efficient quantity? O O 30 40 50 70
A: Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…
Q: Give examples of the factors that shifts the Aggregate Supply Curve.
A: Aggregate supply refers to total supply of all the goods and services in an economy during the given…
Q: What are the factors one should consider when deciding which cities and which parts of the city to…
A: Walmart is about to expand its InHome delivery to LA. In order to decide about the availability of…
Q: Price OA+B+C OB+C Refer to the figure. When the price is P₁, consumer surplus is OC A 9₂ Question 5…
A: Consumer surplus is the area below demand curve and above price. Consumer surplus is the difference…
Q: two machines. You work for Midstates Solar Power. A manager asked you to analyze the following…
A: Capital recovery (CR) refers to the return that an investor gets on the initial investment made.…
Q: A fixed capital investment of P10,000,000 is required for a ed manufacturing plant and an estimated…
A: We have, (FC) Fixed capital is P10,000,000 (WC) Work capital is P2,500,000 Annual Depriciation is…
Q: . Consider the following "location game." There are two ice cream sellers (Seller 1 and Seller 2) in…
A: a. This game has discrete strategies because the payoff is defined by the proportion of residents…
Q: What happen to the money market equilibrium when the Fed raises its interest rate target to 6…
A: Here, it is given that the Fed increases the target interest rate to 6% when there is an increase in…
Q: Consider the following formula: y i - ( β 0 ^ + β 1 ^ x i ) . What does this formula describe?…
A: Here, the residual equals the difference between the actual value of yi and the predicted value f…
Q: A consumer’s utility only depends on the consumption of goods A and B according to the following…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: A firm started advertising its product and this changed the product’s elasticity from -2 to -1.5.…
A: If a given price level the demand is elastic then firm should reduce its price, the percentage…
Q: Discuss how duality theory can help policymakers with regards to supply side economics.
A: The duality theory refers to the relation between quantity and price which we develop through…
Q: How can household borrow in the United States be Reduced? Write in 4 paragraph
A: Borrowing: In the Budget document, borrowing is categorized as a loan taken by the government and is…
Q: Assume the following: Price that buyers pay = $22 Price that sellers receive = $25 What must be the…
A: Tax can be found by the difference between the price paid and received by the buyer and seller…
Q: Consider a standard Solow-Swan model. A permanent increase in the level of total factor productivity…
A: Solow-Swan Model is defined as an exogenous model of economic growth in the long run. It states that…
Q: Question 4 Offered insurance coverage at an actuarially fair price, an individual with a concave…
A: Answer 4. Insurance was cited as a prime example of the distinction between risk-aversion and…
Q: In the long run, when the Fed increases the quantity of money, the O demand for money decreases. O…
A: The quantity theory of money usually states that the amount of money that is in economy's…
Q: a simple Keynesian model what is the level of autonomous spending? CA = 800 GA = 600 IA = 400 MPC…
A: According to the the Keynesian model, the level of income is decided by the expenditure. The…
Q: ) Suppose that the two firms engage in Cournot competition. Find the equilibrium price PNE in the…
A: in market price and output are determined by the demand and supply of curve here, but in imperfect…
Q: C2) Company A is the only supplier of glass in Big Apple City used for tall buildings’ exteriors.…
A: Given that , The marginal cost of production is cA =1 TCA = QA , The deman for big apple city QD=2…
Q: When the supply of money increases, what happens to the interest rate? A. the interest rate…
A: The total amount of money that is in circulation in the economy at any particular time is referred…
Q: B. Use the public demand schedule above and the following supply schedule to ascertain the optimal…
A: In economics, a demand schedule is a table that shows the quantity demanded of a good or service at…
Q: Abdul’s utility function is given by U A 5 M A 2 y M B , where M A is Abdul’s wealth level and M B…
A: Consider that; MA is the A's wealth level, and MB is the B's wealth level Initially, MA=MB=10.…
Q: 60 55 35 20 14 10 MC 20 25 MR ATC AVC Q
A: In case of Monopoly there is a single seller who controls the entire market. The firm is a Price…
Q: How would such a tax affect the market for gasoline i.e. what is the new equilibrium?
A: A tax on buyers will impact the demand curve whereas a tax on sellers will impact the supply curve.
Q: 37. If the equilibrium level of GDP is $30,000, using the equations for C, I, G, and NX shown above,…
A: Here, given information is: C=4,000+0.5Y I=1,500 G=2,250 NX=-150 To find: the value of marginal…
Q: of 11 Suppose Home is a SMALL country, and that the graphs below represent the Home and the World…
A: Here, the given graph provided information about the home market and world market for tomatoes. In…
Q: Consider the Human Capital Accumulation model with a production function given by Y = AK0.5 H0.5,…
A: Introduction Human capital consists of the knowledge, skills, and health that people invest in and…
Q: Question 30 There are two countries in the world, A and B. Suppose the central bank in country A has…
A: The real exchange rate of country A = (PB *E) / PA Where PA : price in country A PB :…
Q: Suppose that firm Alphabet is the only company that sells all-inclusive vacation packages in the UK.…
A: Price discrimination refers to the selling strategy which can charge different prices from different…
Q: 8. Figure below shows the Percentage of Total National Income Spent on Health Care in the United…
A: A value of a variable as a percentage of the value of the other variable is given as: = (value…
Q: Assume that the reserve requirement is 16 percent. Also assume that banks do not hold excess…
A: Open market operations refer to one of the tools that are used to control the money supply. OMO…
Q: the demand function q = D(p)=317-p, find the following. For a) The elasticity b) The elasticity at…
A:
Q: Explain the inflation of the midterm in United States
A: Inflation is the increase in the general price level of goods and services in a region. Inflation…
Q: A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells…
A: Variable cost changes with the change in output. Variable cost is more when output produced are…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You have created a business-to-business Internet venture directed at an industry with 50 identical firms. Your services allow these firms to do business with each other more efficiently as members of your trading network. You plan to sell access to your service for a price "p" per member firm. Each firm’s benefit from the service is given by "2n", where "n" is the number of other firms joining the network as a member. So, if 21 firms join your service, each places a value of 2 × 20 or 40 on membership in your network. (a) Suppose you set the price, p, and then firms simultaneously and independently decide whether or not to join as members. Show that, for a 0<p<98, there exist exactly two Nash equilibria in the simultaneous-move game played by firms deciding whether or not to join the network as members. Suppose for part (b) that you are able to persuade 10 firms to join your network at an initial stage. At a second stage, you set a price for the remaining 40 firms. These 40 firms…If a good is valued at $55,000 by the buyer and $47,000 by the seller, what amount of tax would result in an unconsummated transaction? Group of answer choices the transaction would never take place even if there wasn't a tax a tax of $7,999.99 a tax of $1,500 a tax of $9,000The Able Manufacturing Company and Better Bettors, Inc. are rival firms in the production of a calculator used by horse racing fans for handicapping (determining betting strategies). Each firm has a fixed cost of $100 and a MC = $10 in producing calculators. The demand for the industry’s product is: Q = 900 – 5P, where P is the market price and Q = Q1 + Q2. If each firm must choose how many calculators to produce and sell without knowing of its rival’s production decision, what will be the Cournot equilibrium price and quantities produced? Calculate the profit for each firm.
- Barney is a game designer but being old fashioned, he restricts his passion to creating board games. His latest game, Rubble Trouble, requires players to overcome various obstacles as they make their way around the board. Barney is concerned that others may copy his game. Based on your reading of the Business Law Textbook. Barney is best advised to protect his game by: Select one: a. Applying for a patent so that he is granted a monopoly over selling his game for 20 years. b. Registering his copyright, as copyright will protect his game for 50 years. Unless he registers his copyright, Barney will not be able to prevent others from copying his game. c. Registering a trademark. The trademark will prevent others from copying the game for 15 years, but trademarks are not renewable. d. Registering an industrial design, so that others will be prevented from creating board games of the same dimension and size.Which of the following is not a barrier to entry? Group of answer choices high fixed costs ownership of a resource diseconomies of scale regulation and legal feesThree roommates, Jim, Saleem, and Ritesh, are thinking about buying a new speaker system for their apartment. The speaker system would be a public good if they buy them, and the total cost would be $300 which would be shared equally among the three. Jim values it at $80, Saleem values it at $140, and Ritesh values it at $70. If the speakers are purchased each person gets a payoff equal to their net valuation (valuation minus cost share); if they are not purchased each gets zero payoff. a)Is it socially efficient that they buy the speaker system? With reference to the definition of a public good, why or why not? The roommates decide that they will write down their net valuations, and if these reports sum to more than zero, they will buy the TV (sharing the cost equally), or else they will not. b) If all were to report their true valuations, what payoff would each agent earn? c) Show that if Jim and Ritesh submit their true net valuation, then Saleem does better by submitting a false…
- Was it ethically acceptable for president regan to fire the striking air traffic controller?A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price, that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either $228 or $304, with both values equally probable. Without a reserve price, the second highest bid will be the price paid by the winning bidder. The following table lists the four possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder with and without the stated reserve price. Bidder 1 Value Bidder 2 Value Probability Price Without Reserve Price with $304 Reserve Price ($) ($) ($) $228 $228 0.25 $228 $304 0.25 $304 $228 0.25 $304 $304 0.25 Without a reserve price, the expected…A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price, that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either $39 or $104, with both values equally probable. Without a reserve price, the second highest bid will be the price paid by the winning bidder. The following table lists the four possible combinations of bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder with and without the stated reserve price. Bidder 1 Value Bidder 2 Value Probability Price Without Reserve? Price with $104 Reserve Price? ($) ($) ($) $39 $39 0.25 $39 $104 0.25 $104 $39 0.25 $104 $104 0.25 Without a reserve price, the expected price is…
- A company wants to issue a coupon for a product. The marginal cost of the product is $1. If the elasticity of demand for coupon users is -5 and the elasticity of demand for non-coupon users is -2, then in order to maximize profit, what should the value of the coupon (in dollars) be? Group of answer choices: 1) 0.50 2) 0.75 3) 1.00 4) 1.50A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D1=1000-2P1. The demand curve for customers that are more price-sensitive is D2=1000-3P2. The cost of maintaining each cabin is $50. If one single price is charged, what is the price to maximize the profit? What is the profit? If the differential prices are charged to each customer segment, what is the price for each customer segment respectively? What is the total profit? What is the profit increase by charging different prices to each customer segment compared with one single price?Four neighbors, each with a vegetable garden, agree to share their produce. One will grow beans (B), one will grow lettuce (L), one will grow tomatoes (T), and one will grow zucchini (Z). Table shows what fraction of each crop each neighbor will receive. What prices should the neighbors charge for their crops if each person is to break even and the lowest-priced crop has a value of $50?
