margin easons, the government has imposed restrictions that permit a maximum of five firms to compete in this is prohibited. A member of Congress is concerned because no restrictions have been placed on the pa ent pays for this product. In response, she has proposed legislation that would award each existing firms or 880 units at a contracted price of $80 per unit. slation is passed, by how much should you expect your profits to change?
Q: Given the following supply and demand functions: Qdx = 1,600 - 6 Px +0.5 Py-0.5 Pz+0.005 1 Qsx = 550…
A: "Supply function reflects a positive relationship between the price of the product and the quantity…
Q: Under what circumstances would the declining or dying industry argument for establishing barriers to…
A: There are various contentions that help confine imports. These contentions are based around industry…
Q: First National Bank Assets Liabilities Rate-sensitive $40 million $50 million Fixed-rate $60…
A: given that, First National Bank Assets Liabilities Rate-sensitive $40 million $50 million…
Q: Question 42 Utilize the following foreign exchange market demand and supply curve data to answer the…
A: It is the rate at which the value of a domestic country's currency is measured or compared to the…
Q: Net Foreign Factor Income $8 Corporate Profits 47 Gross Private Domestic 73 Investment Proprietors…
A: Net earnings is described as disposable earnings. It is the quantity final after taxes. After-tax…
Q: Keshia loves hanging out at the mall (payoff of 450) and hates hockey (payoff of-450) Joe loves…
A: The payoff matrix given shows normal form of different strategies available to two players
Q: Economics John is a consumer of housing and food with a Cobb-Douglas utility function of U(H, F) =…
A: Utility function : U = HaFb Let us assume the income of John be 'M' . Price of housing be 'Ph' Price…
Q: Question 44 A weakening in consumer confidence causes a O movement down along the aggregate demand…
A: Answer to the question is as follows:
Q: If computers are like most goods and the price of computers chips fall, then holding all else…
A: Answer: A decrease in the cost of inputs leads to an increase in the supply of a good. As a result,…
Q: Suppose the reserve requirement is 8% and a new deposit of $900 billion is made into the banking…
A: Since you have asked multiple sub parts we will solve first three sub-parts for you. To get more sub…
Q: What are the positive and negative effect of economic factors to the operation system?
A: An economic factor is anything that might potentially change or affect a person's financial…
Q: One method of calculating GDP is to add the value of output produced. What is another? A.)…
A: GDP is the value of goods and services produced in the country
Q: Which of these statements is true? Select all correct answers. Relative to February 2021, the…
A: Federal Reserve System is the financial institution which is also called regulating body and it…
Q: ect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 1…
A: First we to find out the real GDP in year 2 = current year quantity*base year price =…
Q: Suppose there are 1,000 potential customers spread evenly along a 10 kilometre straight road and…
A: Here, there are 1,000 potential customers spread evenly along a 10 kilometer straight road and each…
Q: Suppose you are the managing director of a firm that produces two goods: A and B. The price…
A: Elasticity could be a general measure of the responsiveness of an economic variable in response to a…
Q: ow will the following events affect exports of a country, ceteris paribus? increase decrease no…
A: Export is crucial component of aggregate demand. Rise in the export leads to rise in foreign…
Q: Which function of money is carried out when we use the U.S. dollar to compare the relative values of…
A: Money serves the following functions; Medium of exchange; Money is accepted as a medium of exchange,…
Q: With moderate 3% inflation, if a hamburger is costed $5 today (2016), how much it will become in…
A: The annual inflation rate is 3%, and it will remain the same. The cost of a hamburger in 2016 is $5
Q: The following are correct descriptions about a Price Ceiling, EXCEPT: Question 8 options: Is…
A: A price ceiling is the maximum amount that a seller is permitted to charge for a product or service.…
Q: Consider an AD-AS model with AD curve Y - Y* = -ay(π − π*) + €d and AS curve π = π² + OB(Y - Y*) +…
A: Aggregate supply refers to the cumulative quantity of a firm's production and selling, or the real…
Q: ) 14) According to the absorption approach what happens to China's trade balance following an…
A: Introduction Absorption and monetary approach both are related to balance of payment adjustments.…
Q: Informed trading... a. Aims to profit from differences between the market prices and fundamental…
A: Trading is done by the people through stock markets. In stock markets, people buys and sell their…
Q: According to macroeconomic theory, in a perfectly competitive market a company: Group of answer…
A: Perfect competition is a perfect kind of market structure where all customers and producers include…
Q: How to test Marx's theory of alienation today?
A: Workplace alienation was first defined by Marx and is still relevant today. People were driven into…
Q: The Federal Reserve determines that the equilibrium level of output is above full employment and the…
A: Federal reserve is the central bank who regulates the supply of money in the economy.
Q: what are some examples of industries that have a Sustaining Competitive Advantage like Sports…
A: A company's talent, asset, or feature that is difficult to duplicate or surpass in terms of…
Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…
A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…
Q: Use the estimated demand function to calculate the expected value of QY in a typical market.…
A:
Q: In Exhibit 7-15, diseconomies of scale are shown in the range of O a. 500 to 1,000 units per week.…
A: Diseconomies of scale surface when a firm or company increases so extensively that the costs per…
Q: ed lus Imports) Quantity Demanded 0 15 14 8 13 12 12 16 20 10 24 9 mbol) to plot the demand curve…
A: A tax is a sort of expense required by a country on an imported decent at the line. Taxes have…
Q: economic problems is a result of( resources are unlimited and wants are limited it is true or false…
A: The measure that depicts the area of production, trade, distribution and consumption of services and…
Q: Consider the three figures to the right. If the firm were to employ an 8th unit of labor at the wage…
A: Average variable cost = Total variable cost / Output Marginal cost = Change in total cost / Change…
Q: The Australian government wants to create a new income tax that collects 10% for all incomes between…
A: Average tax rate is the share of income that a tax payer pay in taxes. The marginal tax rate is the…
Q: In the most recent FOMC meeting, the Federal Reserve increased the Federal Funds rate. By doing…
A: The Federal Reserve is seeking to orchestrate a so-called “soft landing” for the US economy, raising…
Q: Consider the preferences represented by the following indifference curves. These preferences are…
A: Indifference curve represent graphical model of different alternative combinations of two goods…
Q: Suppose in Year 1 a country has an inflation rate of 10% and in Year 2 the country has an inflation…
A: Disclaimer :- Since you asked multiple question we are solving the first 1 only as per the…
Q: Consider an economy with the given equations. Y = C + I + G + NX Y=$6000 G=$1050 T=$1100…
A: National Savings: National savings implies to the money saved from both the public and the private…
Q: For a monopolist, the profit-maximizing output is given by the condition ____, and the…
A: When talking about the monopolist's firm, it can be said that his production, output, and pricing…
Q: The following are correct statements about the Income Effect (IE) and Substitution Effect (SE)…
A: Due change in price quantity of goods is also changed and it is inversely related. This is called…
Q: You need to take a trip by a car to another town that you never visited before. Therefore, you are…
A: Network model can be understood as totality of nodes and arcs. It is considered as a flexible model…
Q: Consumer satisfaction from consuming goods X and Y is as follows: U=10X+14Y-X2-Y2 and consumer…
A: Consumer equilibrium is the situation where he gets maximum satisfaction level of utility with given…
Q: a) What is the equation for the firm's short-run marginal cost (SRMC) curve. Draw it on a graph with…
A: Here, the short run total cost is SRTC=200+5q+0.5q2 where q is the number of rugs a firm produces.…
Q: The Clark-Fisher model explains the significant shift within the economy over time by emphasizing:…
A: The Clark Fisher Model demonstrates how the importance of various sectors varies across countries,…
Q: Analyze and compare fiscal and monetary policy in order the generate macroeconomic stability between…
A: Monetary policies are the measures taken by central banks to maintain the monetary as agreeably as a…
Q: e Page 426 13.1. What is the aggregate demand-aggregate supply model? Fill in the blanks to complete…
A: Recessions in the United States have a long history in the United States, demonstrating that they…
Q: How will the following events affect imports of a country, ceteris paribus? increase decrease no…
A: For a country, imports refers to the situation when domestic consumers make demand for foreign goods…
Q: xt:Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule…
A: Rule (A) Choose the activity with the highest value Rule (B) Choose the activity with the lowest…
Q: After the Federal Reserve buys bonds, the interest rate changes and aggregate expenditures change,…
A: Answer: If the federal reserve buys bonds then it will pay the price of bonds to the bondholders. It…
Q: When the model y = Bo+B₁ + B₂x12 + 14, was estimated, the 95 percent confidence inter- val for 3₂…
A: Given model is: yi=β0+β1xi1+β2xi2+ui 95% confidence interval = (-0.12, 1.32) The confidence interval…
Step by step
Solved in 2 steps
- A large firm has two divisions: an upstream division that is a monopoly supplier of an input whose only market is the downstream division that produces the final output. To produce one unit of the final output, the downstream division requires one unit of the input. If the inverse demand for the final output is P = 1,000 − 80Q, would the company’s value be maximized by paying upstream and downstream divisional managers a percentage of their divisional profits?Consider a single country and a single good. The demand curve for this good is given by QD = 144 - 4P. Thereare two firms serving the market: Firm A and Firm B, where Firm A has a marginal cost of $20 and Firm B hasa marginal cost of $16. There are no fixed costs incurred by either firm. Assume that these firms compete in Cournot fashion. Part I. How many units of output each firm produces? Show your work. Part II. What is the equilibrium price in the market? Show your work.Part III. How much profit each firm makes? Show your work. Part IV. What is the consumer surplus? Show your work.You are the manager of a local sporting goods store and recently purchases a shipment of 60 sets of skis and ski bindings at a total cost of $25,000 (your wholesale supplier would not let you purchase the skis and bindings sperately, nor would it let you purchase fewer than 60 sets). The community in which your store is located consistes of many differed types of skiers, ranging from advanced to beginners. From experience, you know that different skiers value skis and bindings differently. However, you cannot profitably price discriminate because you cannot prevent resale. There are about 20 advanced skiers who value skis at $400 and ski bindings at $275; 20 intermediate skiers who value skis at $300 and ski bindings at $400; and 20 beginning skiers who value skis at $200 and ski bindings at $350. What is your maximum revenue if you charge a separate price for skis and bindings? What is your maximum revenue if you sell skis and bindings as a bundle?
- Two firms sell an identical product in a market by setting prices simultaneously. Consumers buy from the firm that offers the lower price; if the prices are identical, the firms split the demand. If ? is the lowest price (in dollars), aggregate demand is ? = 250 − ?. Suppose prices can only be set in increments of 1 cent. (a) Suppose Firm 1 and Firm 2 have limited production capacities of 40 units each. The marginal cost of firm 1 is $35 and the marginal cost of firm 2 is $25. If Firm 1 believes that Firm 2 will set a price of $30, what price should Firm 1 set? Show your work. (Assume efficient rationing while calculating firm’s residual demand.) (b) Ignore the information in part (a). Suppose each firm has unlimited capacity, but that the marginal costs of Firm 1 and Firm 2 are $40 and $150 respectively. Do ?1 = 149.99 and ?2 = 150 satisfy the requirements of a Nash equilibrium? Explain why. You must explain why a strategy is a best response or not to the other strategy.Consider a single country and a single good. The demand curve for this good is given by QD = 144 - 4P. Thereare two firms serving the market: Firm A and Firm B, where Firm A has a marginal cost of $20 and Firm B hasa marginal cost of $16. There are no fixed costs incurred by either firm. Assume that these firms compete in Bertrand fashion. Part I. What is the equilibrium price in the market? Explain your reasoning. Part II. How many units of output each firm produces? Show your work. Part III. How much profit each firm makes? Show your work. Part IV. What is the consumer surplus? Show your work.Consider a single country and a single good. The demand curve for this good is given by QD = 144 - 4P. Thereare two firms serving the market: Firm A and Firm B, where Firm A has a marginal cost of $20 and Firm B hasa marginal cost of $16. There are no fixed costs incurred by either firm. Assume that these firms compete in Bertrand fashion. Part V. What is the equilibrium price in the market now? Explain your reasoning. Part VI. How many units of output each firm produces? Show your work. Part VII. How much profit each firm makes now? Show your work. Part VIII. What is the consumer surplus? Show your work. Part IX. Under which competition, Cournot vs. Bertrand, social welfare is higher? Show your work.
- You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 250 − 5P and the market supply (including taxes) is QS = 4P − 110 (both in millions), where P is the monthly price of the telecommunication services.The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 4.171P − 110. How much money per unit would a typical consumer save…You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 300 − 4P and the market supply (including taxes) is Qs = 3P − 120 (both in millions), where P is the monthly price of telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of Qs = 3.2P − 120. How much money per unit would a typical consumer save each…You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 300 - 4P and the market supply (including taxes) is QS = 3P - 120 (both in millions), where P is the monthly price of the telecommunication services.The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 3.3P - 120. How much money per unit would a typical consumer save…
- Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be, P = 520 − Q , 50 where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $160 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…