P, R, C AB А C G I j where h. The allocative efficiency is at 1. The market equilibrium point is at point j. The price when the firm is at allocative efficiency is MC K ATC MR D=AR Q
Q: Merry Industries is considering a new piece of equipment for a project lasting 10 year with details…
A: The annual worth method or AW method implies that all the incomes along with disbursements, regular…
Q: Suppose that the monopolist can produce with total cost: TC = 10Q. Assume that the monopolist sells…
A: The monopoly firm can follow the price discrimination strategy to maximize the profit. However,…
Q: St Pete Times A. Low price $120,000 High Price C. Low Price Tampa Tribune $90,000 $100,000 $54,000…
A: We are going to solve normal form of game to answer this question
Q: ● ● PROJECT A +L ● -K -M 1 2 Show all stages of conversion. Take i% 10% per year. 3 Figure Q3…
A: Given Cash flow
Q: What are the equations for the consumption, net exports, and aggregate expenditures functions?
A: Given Y C I G Net export X $100 $120 $20 $30 $10 $300 $300 $20 $30 -10 $500 $480 $20 $30…
Q: What is scarcity?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: In the short-run, if a perfectly competitive firm chooses to produce, then its profits are maximized…
A: At the marketplace, the profit maximizing output decision is different for a perfectly competitive…
Q: . Can you do anything to reduce the number of people in the following categories? If so, what?
A: Frictional unemployment defines the number of people unemployed as a result of dropping from one job…
Q: Okun's Law is defined as: Change in the unemployment rate=-: If the unemployment rate is 3.6% and…
A: Okun Law represent the relationship between unemployment and losses in a production which occur…
Q: Explain how the user market, the capital market, and the government interact to determine real…
A: Note:- Dear learner you have posted multiple questions, as per our policy we have solved only first…
Q: Q3. The Lewis-Fei-Ranis model of economic development with unlimited supplies of labour is a…
A: The Lewis-Fei-Ranis economic development model considered an elaborative or an extended version of…
Q: 8 1. In what sense is education a type of capital? 2. What conditions lead to highly…
A: Note: You have uploaded multiple and unrelated questions. Hence, we shall answer only the first one…
Q: Consider the following Extended Form Game: 0 1 02 O 3 A' 04 (9,5) A P2 P1 B' A' (5,2) (8,5) B A…
A: We will solve this using backward induction and we will start from the end and work our way up to…
Q: llustrate the role of money supply in causing inflation
A: Since you have asked multiple question, we will answer first question for you. If you want any…
Q: When the North American Free Trade Agreement (NAFTA) was being negotiated in the early 1990s, there…
A: In economics, gains from trade are the net advantages to economy agents from being permitted an…
Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…
A: Accounting profit does not take into account the opportunity cost. Accounting Profit = Total Revenue…
Q: The graph below shows the cost and revenue curves for IchiBan Inc., a monopolist. Revenues and costs…
A: Here, the given graph shows cost and revenue functions of a monopolist, according to which he can…
Q: Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance…
A: division of labour, the separation of a work process into a number of tasks, with each task…
Q: Consider again the same economy with two banks: Bank One and Bank Two. Partial balance sheet…
A: The amount of money in an economy is alluded to as the money supply. Truth be told, the physical…
Q: The table below shows the payoff matrix for a game between Toyota and Honda, each f which is…
A: At the point when a market is in equilibrium, the price of a good or administration will in general…
Q: You are considering developing an 18-hole championship golf course that requires an investment of…
A: Initial Investment = 25,000,000 Maintenance Cost = 660, 000 annually (Increasing by 45000 annually…
Q: How large a tax cut would be needed to achieve the same increase in aggregate demand? $ 13 bilion b.…
A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…
Q: Used textbooks sold at your college bookstore Use books sold at a garage sale Cars made in the…
A: Gross domestic product(GDP) estimates the monetary worth of goods and services, that is, those that…
Q: how do you know the total variable is 50 when finding the total fixed cost
A: TC = AC * Q ------------------- MC is a change in TC due to changing quantity by one unit. MCn =…
Q: Note: A, D, In the Insulin market, the government decides to regulate a price with the ceiling…
A: Producer surplus refers to the are above the supply curve but below the price line. After a ceiling…
Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…
A: National income implies the worth of labour and products created by a country during a monetary…
Q: Transcribed Image Text:The price and quantity data for Year 1 and Year 2 are as follows: Bread 50 1…
A: Gross Domestic Product is defined as the monetary value of all final goods and services produced…
Q: Question 6: Compare and contrast the function of fiscal policy during short term and long term…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which of the following shifts the demand curve for rice? A. a decrease in the price of a pound of…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: How does Matthew effect affect the principles of economics.
A: The term "economic principle" refers to a broad range of economic rules and ideas that describe or…
Q: In the long run... Multiple Choice all inputs are fixed. None of these options are correct. the…
A: Long run in economics is a time period where firm can adjust all the costs whereas they can only…
Q: What are the objectives and advantages of international monetary fund?
A: The IMF is an international association that addresses 190 part countries. It tries to promote…
Q: Question 22 Consider the following Extended Form Game: 01 02 04 A O 3 (2,3) P1 A' (5,5) A' B (3,8) A…
A: In the study of game theory, extensive form games is defined as the way of describing any game with…
Q: How much extra profit does the monopolist earn when he increases the price from $12 to $18
A: The monopoly firm is a single firm in the market. Thus, it has market power to set the price.
Q: The total surplus (consumer surplus plus producer surplus) is greatest when which of the following…
A: Equilibrium is achieved at a point where demand curve intersects supply curve.
Q: What’s economics?
A: Microeconomics is the study of specific economic units. An area of economics called macroeconomics…
Q: What is the importance of public finance?
A: Introduction - In the 19th century, public finance or revenue had no special importance as the…
Q: Given following normal form i) ii) Player C-1,2 1,-2 1 N 1,-2 -1,2 Player 2 CN Find pure strategy…
A: The matrix looks like:
Q: At period t, the federal government imposes tariffs on China, which increases prices by 3%. This…
A: The Federal government imposes tariffs on China due to which prices of goods and services increased.…
Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…
A: Note:- Der Learner you have posted a question with multiple sub parts, as per our policy we have…
Q: b. An oligopolistic firm maximizes profit by equating marginal revenue and marginal cost c. The…
A: Game Theory and Oligopoly: Game theory is normally best used in an oligopoly as there are a limited…
Q: Question 13 was not answered.
A: Price elasticity of demand is an estimation of the adjustment of the utilization of an item…
Q: 6. Who proposed Revealed prefere A. Wilfred Pareto B. J. Hicks C. Paul A. Samuelson D. All of the…
A: The rationality of customers is the underlying presumption of revealed preference theory. In other…
Q: Financial institutions have warned that increased life expectancy means that many people have not…
A: Consumption Consumption is the way that households consume products and services. Contrary to…
Q: 18. Which of the following is an example of Common Resources a) automobiles b) bridge c) fish in the…
A: Common resources are those goods that are non-excludable and rival in consumption. Non-excludable…
Q: Uncoventional monetary policy: financial policy and quantitative easing Suppose that the IS and LM…
A: Given information IS function: Y=C*(Y-T)+I*(Y, r+x)+G LM: r=r* C= consumption Y= income level Y= tax…
Q: Which of the following is a significant difference in the outcomes between the dictator game and the…
A: The ultimatum game is an experimental economics game in which two sides communicate anonymously and…
Q: ECONOMICS.... Suppose a 4 percent increase in income results in a 2 percent decrease in the…
A: In economics, different types of goods tends to change differently when the consumer incomes…
Q: The figure below depicts the supply (S) and demand (D) for labor in a perfectly competition market,…
A: Equilibrium in the labor market occurs at the intersection of demand and supply curves of labor.
Q: Suppose you are a beneficiary designated to immediately receive 14933 each year for 11 years,…
A: Given, PV = P 14933 Time = 11 year Interest rate = 2%
PLEASE SKIP THIS IF YOU ALREADY ANSWERED
Step by step
Solved in 2 steps
- Suppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand curve for this product is Demand: QD = 120 – P where P is the price and Q is the total quantity of the good.Currently, there are 9 firms in the market. a. What is each firm’s fixed cost? What is its variable cost?Give the equation for average total cost. b. Graph average total cost curve and the marginal cost curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…In reference to the attached chart, I was supposed to calculate the bundle prices and net profits. I got assistance, and here is the feedback: The Satisfying Smoothie's net profit is 10.00 - 5.00 = 5.00. The Hydration Power Drink's net profit is 7.00 - 3.00 = 3.00. How is the net profit for Hydration Power Drink 3.00, when 7-3= 4? And Why would it be 7-3, and not 7-6?Suppose a firm is operating in a competitive market and is maximizing profit by producing at thepoint where marginal revenue 5 marginal cost.Now suppose that consumer wealth decreasesin this market (and the good is a normal good).What might you expect to happen to the profitmaximizing output quantity for the firm?
- Henry Potter owns the only wcU in town that pro-ducesclean drinking water. He faces the follO\\•ingdemand, marginal revenue, and marginal cost curves:Demand: P • 70 - QMarginal Revenue: MR • 70 - 2Q~arginal Cost: MC • lO + Qa. Graph these three curves. Assuming thatMr. Potter maximizes profit, what quantity docshe produce? What prioc does he charge? Showthese rcsuiiS on your graph.b. Mayor George Bailey, concerned about water con~sumcrs_. is considering a price ceiling that is10 percent below the monopoly price derived inpart (a). What quantity would be demanded atthis new price? Would the profit-maximizingMr. Potter produce that amount? Explain. (Hi11t:1hink about marginal cost.)c. George's Uncle Billy says that a price ceiling is abad idea because price ceilings cause shortages.Is he right in this case? What size shortage wouldthe prioc ociling create? Explain.d. George's friend Clarence, who is even more con~cerncd about consumers, suggests a price ceiling50 percent below the…A diner has no competition when it comes to it's famous reuben sandwich combo plate, for which the graph shows the diners demand (d), marginal cost (mc), and marginal revenue (mr), curves. The price of $20 is based on the mr = Mc rule for profit maximazation. The rectangular region shown represents the net revenue from sales of the sandwich (total revenue from reuben combo sales minus total variable costs associated with reuben combo sales). Now, suppose the diner decides to raise the price during the lunch hour, which accounts for 60% of reuben combo sales, knowing that it's lunch-hour patrons are the most loyal buyers of the reuben combo and also that they are locked into the lunchtime slot by their work schedules. The diner raises the price just enough not to lose any lunch-hour buyers. Use the area tool to outline the region representing the resulting additional net revenue from the price increases. Part 2: As a result of the revised price structure, the diners net revenue…Andrea’s Day Spa began to offer a relaxingaromatherapy treatment. The firm asks you how muchto charge to maximize profits. The first two columnsin Table 10.5 provide the price and quantity for thedemand curve for treatments. The third column showsits total costs. For each level of output, calculate totalrevenue, marginal revenue, average cost, and marginalcost. What is the profit-maximizing level of output forthe treatments and how much will the firm earn inprofits?
- It costs $250 to produce an X-Box. We are trying todetermine the selling price for the X-Box. Prices between$200 and $400 are under consideration, with demand forprices of $200, $250, $350, and $400 given below. SupposeMSFT earns $10 in profit for each game that an X-Boxowner purchases. Determine the optimal price andassociated profit for the case in which an average X-Boxowner buys 10 games. Console Price ($) Demand200 2.00E06250 1.20E06350 6.00E05400 2.00E05Unit cost $250Short-run supply and long-run equilibrium Consiber the competitive market for rhodium. Assume that no matter how many firms operate in the induatry, every firm is identical and faces the same marpinal cost (MC), averapt total cost (ATC), and average variable cost (AVC ) curves plotted in the following praph. The following graph plots the market demand curve for thodium. If there were 10 firms in this market, the short-run equilibrium price of rhodium would be per pound. At that price, firms in this industry would. Therefore, in the long run, firms would the rhodium market. 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 rhodium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. True FalseA toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?
- Assume that you are an economic consultant. The firm that hired you has provided the information below. The firm is a price searcher and wants to maximize its profit (or minimize its loss). InformationPrice: $4Elasticity of demand at price of $4 is Ed=-1Quantity of output: 2000Total variable cost: 4000Average fixed cost: 1Marginal cost is constant and equal to the average variable cost: MC=ACV=2. Which of the following answers correctly describes this case? a) The firm is maximizing profits at the current price of $4.b) The firm should increase price and reduce quantity produced.c) None of the other answersd) Firm should reduce price and increase quantity produced.A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?Figure 12-6 Price (dollars per pound) 5 Market price 4 3 2 0 10 20 30 MC ATC D = MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Which of the following statements is true? O Jason cannot earn a profit from selling any number of apples. O Jason should produce where MC equals $3 (point d) where he will maximize his profit. O Jason should produce where MC equals $3 (point d) where he will minimize his losses. Jason should produce where the distance between MC and his demand curve is greatest (point b).