Jack and Jill are the only two suppliers of water in their village. They go up the hill once a day and come back carrying one bucket of water each (each has one small and one large bucket). They can each choose the big bucket that brings 40 gallons of water, or the small bucket that brings 15 gallons of water.
Q: ATC Avc K FOR EACH DAGRAM, FIND R 1.Quantity Hi 2. Prce IN 3. TR 4. Cost per unit 5 TC A 13 E F
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Explain what would happen to AS or AD (choose AS or AD according to the case) in an e prices and…
A: Macroeconomic equilibrium is achieved at a point where aggregate demand curve intersects aggregate…
Q: A decrease in the expected inflation rate will cause the short-run Phillips curve to shift up shift…
A: A Phillips Curve is a graph that depicts the inverse connection between the rate of change in prices…
Q: manufacturer of microwaves has discovered that male shoppers have little value for microwaves and…
A: The current market price of goods or services is factored into the pricing strategy. Pricing…
Q: Below is a table of exchange rates and GDPS (Gross Domestic Products) for a variety of imaginary…
A: "GDP i.e. the gross domestic product represents the market value of all the final goods and services…
Q: What are the advantages and disadvantages of Stationary Population? Discuss it from the economic and…
A: Since the end of the nineteenth century, the world has been experiencing a demographic transition.…
Q: Marginal benefit is the benefit that your activity provides to someone else. True False
A: Total benefit is defined as the total amount of benefit received by the consumer from all the…
Q: Consider two countries, home and foreign and a single good, Y. Assume that home country imports good…
A: (A) Based on its impact on social welfare, applying an import tariff would be desirable for the…
Q: Please explain it briefly and answer it with more then 75 words Why would an international…
A: The answer is as follows:-
Q: Between Monopolistic competition and Oligopoly, which do you think is better in an economy? Why?
A: Under oligopoly, there are some sellers and a large number of buyers can be seen while the decisions…
Q: What is a likely direct result in bank behavior after the Fed lowers required reserve rate? No…
A: In an economy, the action of the Central Bank has a direct and significant impact on the working of…
Q: If new firms enter a perfectly competitive industry, the market supply A) does not change. B)…
A: In a perfectly competitive market, a large number of grins sell homogeneous goods
Q: Q1. Suppose a man receives an initial annual salary of 60,000Php, increasing at the rate of 5,000Php…
A: With regard to any Covered Employee, Equivalent salary means the base salary (or base wage rate)…
Q: Briefly explain whether and if so how an increase in taxes affects the (i) IS curve, (ii) the LM…
A: Answer:- 1) If there is any form of tax rise, which is mostly done by the government for the benefit…
Q: 4. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q²+0.01q^3 What is…
A:
Q: QUESTION 15 A tax on a good O raises the price buyers pay and lowers the price sellers receive.…
A: The markets are the place where the buyers and the sellers of various types of goods and services…
Q: Assume soybeans are produced by a perfectly competitive, constant cost industry. Fresh Fam is a…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: Use the concept of "holdouts" to distinguish between the government purchasing property versus…
A: Though sellers of land (or other valuable resources) purposefully choose not to sell, even when a…
Q: A Production Possibilities Frontier shows Group of answer choices all the combinations of two goods…
A: Production Possibilities Frontier (PPF) is also known as the Production Possibilities Curve (PPC).
Q: If a firm in a perfectly competitive market triples the quantity of output sold, then total profit…
A: There are many enterprises offering the same identical products in a market structure with perfect…
Q: What does it mean to say that banks create money? Carefully Explain.
A: The financial institution that provides various financial services including wealth management and…
Q: Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and…
A: The ratio of a country's export and its import prices is referred to as terms of trade (TOT).To buy…
Q: 7. Traditional taxi operates with a fixed fare structure but ride-hailing apps use surge pricing…
A: The demand curve shows the inverse relationship between the price and quantity demanded. The demand…
Q: Suppose we estimate the following model of hourly wage as a function of years o education, given…
A: Following is the model of hourly wage as a function of years of education, given data on a sample of…
Q: A problem with money models is that in fact there is more than one kind of money; economists do not…
A: Commercial money, fiduciary money, fiat money, and commodity money are the four categories of money…
Q: $72 Marginal Cost $60 $48 $36 $24 $12 Marginal Demand Revenue 100 200 300 400 500 600 Quantity Based…
A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…
Q: Question 15 Prime interest rate refers to the lowest rate charged by bank to their most important…
A: The economies around the globe are involved in different types of economic and financial activities.…
Q: As demand for housing increases, given supply, this will increase the price of housing. Assuming the…
A: Price elasticity of demand is used to calculate the change in quantity demanded or supplied of a…
Q: 1. Given the price-demand function p(x)=-4x+320, and Total cost function C(x)=40x+3604. (a) Using…
A: Profit is the difference between total revenue and total cost. At break even profit is zero.
Q: A piece of machinery has a cost basis of $50,000 and salvage value will be $5000 after 9000 hours of…
A: Allowed depreciation refers to the depreciation that a business is allowed to deduct from its tax…
Q: In what two ways can we describe migration?
A: Economic migration refers to people moving from one country to another in order to take advantage of…
Q: In the long run, new firms enter a perfectly competitive market when O A) normal profit is greater…
A: In perfectly competitive market, there are many buyers and sellers. Firms produce identical goods so…
Q: Discuss monopoly markets and the ethical weaknesses of monopolies.
A: Market refers to the process through which buyers and sellers come to an agreement on the price and…
Q: In October 2018 Canada agree to open the dairy market to US producers as part of the new NAFTA…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 5. Profit maximization and shutting down in the short run Suppose that the market for microwave…
A: Profit maximization refers to a situation in which a firm is earning maximum profit by producing at…
Q: Compared to a New Classical economist, a New Keynesian economist would argue for Multiple Choice…
A: Economists are the people to make economic analysis by studing economic variables and their…
Q: If the government determines that a natural monopoly must set a price equal to its average cost plus…
A: In Cost plus regulations, government sets a price equal to a firm's average total cost plus mark up.…
Q: Demand pull inflation and cost push inflation are the two causes of inflation. The government of…
A:
Q: . Distinguish between a private nuisance and a public nuisance. What type of remedy is likely to be…
A: m. Distinguish between private nuisance and public nuisance (1) Public Nuisance is a crime, as per…
Q: What is the Imperfect competition that refers to any form of market structure other than perfect…
A: In contrast to the ideal competitive market scenario, imperfect competition is a competitive market…
Q: For a seller, which of the following is NOT positively related? O The price of the good and the…
A: Keeping everything the equivalent on the off chance that the cost of production rises, the profit of…
Q: H2. when Saturday comes, what is the utility of doing your roommate’s request on Saturday under…
A: Utility is an ordering that gives the levels of usefulness or satisfaction of the consumption of one…
Q: annual revenue is OA. 59,878 в. O B. 51,324 O C. 25,662 OD. 42,770
A: Given the fixed cost = $189000 Total revenue = $473000 Variable cost = 473000 x 51% = 241230
Q: Which of the following are stabilization policies and or tools? i) Change of government ministers…
A: Stabilizing policies can be either fiscal or monetary policy, fiscal policy related to the…
Q: Consider the private hire market such as Uber and Lyft. Assume that the price elasticity of demand…
A: 3)i) There exists an inverse relationship between private hire rides and public transport trips.…
Q: Cisco, Inc. has a proposal from the Engineering Planning Division to invest some of the Cisco…
A: The yearly cost of owning, operating, and maintaining an asset throughout its full life cycle is…
Q: Stretching payables refers to postponing payment of bills to their due dates or last date of…
A: Stretching payables refers to paying bills after the due date without jeopardizing the company's…
Q: Assuming that each of the following functions are linear, give an economic interpretation of the…
A: Since you have asked for multiple sub-parts, we would answer the first three for you. To get the…
Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90. a. Solve the long run…
A:
Q: Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) =…
A: Have you ever considered how valuable you are to your company? When requesting a raise or promotion,…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- Two oligopolistic firms have to decide on the pricing strategy. Each can either choose either a high or a low price. If they both choose a high price, each will make $12 million, but if they both choose a low price, each will make $ 8 million. If one sets a high price and other a low one, the low-priced firm will make $16 million, but the high-priced firm will make only $4 million. It is illegal for each firm to communicate with each other. a) Which strategy would both of them ultimately opt for? b) What would be the pay-off for this strategy?Suppose Toyota and Honda must decide whether to make a new kind of side-impact airbags standard equipment on all models. Side impact-airbags raise the price of each automobile by $1000. If both firms make side-impact airbags standard equipment, each company will earn profits of $2.5 billion. If neither company adopts the side-impact airbag technology, each company will earn $1 billion (due to lost sales to other automakers). If one company adopts the technology as standard equipment and the other does not, the adopting company will earn a profit of $3 billion and the other company will lose $1.5 billion. If you were a decision maker at Honda, would you make side-impact airbags standard equipment?The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s marquees. Demand for gasoline in this market is Q = 110 −5P, and both franchises obtain gasoline from their supplier at $3.50 per gallon. On the day that both franchises opened for business, each owner was observed changing the price of gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V’s price, and the owner of Inverted V lowered its advertised price to beat Hull’s price. Since then, prices appear to have stabilized. Under current conditions, how many gallons of gasoline are sold in the market, and at what price?Instructions: Enter your responses rounded to the nearest two decimal places.Gallons sold: Price: $ How would prices differ if Hull had service attendants…
- Suppose that Market demand for golf balls is described by Q= 90-3p,Where Q is measured in kilos of balls. There are two firms that supply the market. Firm 1 can produce a kilo of balls at a constant unit cost of $15 whereas firm 2 has a constant unit cost equal to $10.a. suppose firms compete in quantities. How much does each firm sell in a Cournot equilibrium? What is the market price and what are firms' profit?b. suppose firms compete in price. How much does each firm sell in a Bertrand equilibrium. What is market price and what are firms' profits?Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $400. If both play the strategy stay, then each gets a payoff of $800. If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D. When is the outcome where both play leave a Nash equilibrium? a) never, since 800 > 400 b) when 400 > C and D > 800 but not when 800 > D c) whenever 400 > C d) when D > C and C > 400 e) whenever d < 800Two firms with differentiated products are competing in price. Firm A and B face thefollowing demand curves: Q_A = 70 − 2P_A + P_B and Q_B = 120 − 2P_B + P_Arespectively. Assume production is costless.a. Give equations for and graph each firm’s reaction curve.b. If both firms set their prices at the same time, what is the Nash equilibriumprice, quantity, and profit for each firm?c. Suppose A sets its price first and then B responds. What price and quantitydoes each firm set now? Is it advantageous to move first?d. Compare the profits from part b and c. Which firm benefits more from thesequential price choosing? (Please do b-d, thanks :))
- The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s marquees. Demand for gasoline in this market is Q = 80 − 6P, and both franchises obtain gasoline from their supplier at $2.20 per gallon. On the day that both franchises opened for business, each owner was observed changing the price of gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V’s price, and the owner of Inverted V lowered its advertised price to beat Hull’s price. Since then, prices appear to have stabilized. Under current conditions, how many gallons of gasoline are sold in the market, and at what price? Would your answer differ if Hull had service attendants available to fill consumers’ tanks but Inverted V was only a self-service station? ExplainThe inverse market demand for fax paper is given by P=100-Q. There are two firms who produce fax paper. Firm 1 has a cost of production of C1= 15*Q1 and firm 2 has a cost of production of C2=20*Q2 a) Suppose firm 1 and firm 2 compute simultaneously in quantities. What are the Cournot quantities and prices?What are the profits of firm 1 and 2?b) Suppose firm 1 and firm 2 compete simultaneously in prices. What are the Bertrand quantities and prices?What are the profits of firm 1 and 2?If firm 1 and firm 2 are the oligopolistic firms in bottled spring water production in Nomansland. The market demand is given by ? = 5000 −20?, Qd is the number of kilolitres demanded per month while P is the price of kilolitres of bottled water. The marginal cost of a kilolitre of bottled water is R10.How do I Find the Cournot equilibrium quantities and price? and how do I Find the Cournot profits and the monopolist profits?
- Suppose that an oligopolistic is charging $21 per unit of output and selling 31 units each day. What is its daily total revenue? Also suppose that previously it had lowered its price from $21 to $19, rivals matched the price cut, and the firmâs sales increased from 31 to 32 units. It also previously raised its price from $21 to $23, rivals ignored the price hike, and the firmâs daily total revenue came in at $482. Which of the following is most logical to conclude? The firmâs demand curve is (a) inelastic over the $21 to $23 price range, (b) elastic over the $19 to $21 price range, (c) a linear(straight) down sloping line, or (d) a curve with a kink in it?Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000. If both firms make side-impact airbags standard equipment, each company will earn profits of $0.5 billion. If neither company adopts the side-impact airbag technology, each company will earn $1.5 billion. If one company adopts the technology as standard equipment and the other does not, the adopting company will earn a profit of $2 billion and the other company will earn $-1 billion.If you were a decision maker at Honda, would you make side-impact airbags standard equipment?multiple choice 1 There is not enough information to answer the question. No Yes If Toyota and Honda were able to cooperate, would you expect this same outcome?multiple choice 2 Yes No There is not enough information to answer the question.3.1 Do either of the two telecommunications firms have a dominant strategy in this interaction?If so, what are these dominant strategies? 3.2 What is the Nash Equilibrium of the game above? Clearly, show the logic you use to reachyour conclusion. What type of game is this? 3.3 Suppose the two firms could incentivize or punish each other, could the two firms find theirway to the socially optimum outcome? How would they do this? After observing the strategic interaction between Globogym and Average Joe’s, the governmentdecides to pass a law that states that the two terms must pre-commit to the quantities of trainingsessions they will supply to the American market.Market demand for training sessions is still modeled as ? = 400 − 0.2?, as before, and the marginalcost of production is constant at R40 per call. Let the number of sessions provided by Globogym berepresented by ?G and the quantity provided by Average Joe’s be represented by ?A. 3.4 Solve the firms’ reaction functions and…