Onestore has monopoly power in Smalltown. Assume that Onestore is a profit maximizing firm and currently operates at a negative economic profit in the short run. (a) Draw a correctly labelled diagram for Onestore and show each of the following: (i) The profit maximizing price and quantity labelled as Pm and Qm respectively (ii) Shade completely, the area representing the negative economic profit (b) Explain why Onestore continues to operate in the short run despite earning negative economic profit in the short run. (c) A single price monopolist's demand curve is given by: P= 240 – 39 and its total cost curve is given by TC = 30 + 6q (i) Calculate the monopolist's profit maximizing level of output (ii) Calculate the profit maximizing price for the monopolist (iii) What is the profit of the monopolist?

Q: Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility...

A: To get the income-consumption curve, for toothpaste tubes between the income of £0 to £21, and assum...

Q: In what ways is the Pakistan education system inequal?

A: Inequality in education can be understood when educational resources are distributed unequally. This...

Q: Consider a perfectly competitive firm with a short-run total cost function given by     TC = q2 + 10...

A: Answer to the question is as follows :

Q: True or false? It is possible to have a Pareto efficient allocation where someone is worse off than ...

A: Named after the Italian economist and political scientist Vilferdo Pareto, the Pareto efficiency ref...

Q: price elasticity of demand

A: When p = 40, q = (448 - 40)2 / 150 = (408)2 / 150 = 1109.76 Elasticity = (dq/dp) x (p/q) = (1/150) x...

Q: Answer for part a , b , c and d only

A: As we answer only 3 subparts and the question contains more than 3 subparts, we would be answering t...

Q: (Production in the Short Run) Complete the following table. At what point does diminishing marginal ...

A: Marginal product refers to the additional output that obtained by increasing one more unit of variab...

Q: Consider a duopoly market with 2 firms. Aggregate demand in this market is given byQ = 500 – P,where...

A: In a duopoly market, we take only two firms in consideration as an assumption (here, A and B). in th...

Q: 1. Suppose the marginal or bracket tax rate for income from $1 to $15,000 is 12%, the marginal tax r...

A: A progressive tax is a tax/duty wherein the expense rate increments as the available income/taxable ...

Q: Explain the winners and losers of trade barriers. You can be specific to a particular trade barrier ...

A: Trade barriers are restrictions imposed by the government or domestic country on free trade. These r...

Q: Suppose a manufacturer of exercise equipmentsets a suggested price to the consumer of $395 fora part...

A: Retail margin factor = 0.4 Wholesale margin factor = 0.25 Market price = 395

Q: A feasible production combination for a firm producing two outputs must be: (i) Outside the PPF (ii)...

A: Here to explain the answer, the graph would be more helpful to understand:

Q: Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750ml size is q...

A: Profit is the excess of TR(total revenue) over TC(total cost). A rational person always wants to max...

Q: buaget paste. does not receive any utility from owning a toothbrush, but for the consumption of ever...

A: Income consumption curve(ICC) shows the combinations of various optimal bundles of goods that will b...

Q: Lara offers 100 autograph bats.If each is priced at p dollars,it is that the demand curve for the ba...

A: Answer: Given: Demand curve of Bats: p=250-q4q4=250-pq=1000-4p The elasticity of demand: Ep=dqq÷dppE...

Q: If price is less than average cost in a monopolistically competitive market: A. there is no incentiv...

A: In a monopolistic competitive market there are large number of forms producing similar but not ident...

Q: For each of the policy objectives listed, identify each as a product of either financial incentives ...

A: It is important to understand what is financial incentive and intellectual property. Financial incen...

Q: The total cost of a firm is TC(Q)=3Q2+4Q+37. Suppose its current output level is 7. Find its ATC.

A: Total cost measures the overall cost incurs in the course of production. 

Q: For each of the following examples, state if you think it is included in the 2010 calculation for th...

A: GDP (Gross Domestic Product) measures the market value of all final good and services produced in an...

Q: If a firm is operating in a monopolistically competitive market, then in the long run: A. the firm w...

A: Answer to the question is as follow : 

Q: Economics Question

A: The total cost function of the firm is C(x) = 400,000 + 140x + 0.003x^2 where x = production of smar...

Q: don't use excel also can you show me maths solving with equation by hand please....

A: Equivalent annual value of repair (AR) for perpetual time period can be calculated by using the foll...

Q: Good afternoon Pleae answer i and ii

A: c)i) p= 250-q/4 Writing the demand equation in terms of p, q/4=250-p q=1000-4p finding the first ord...

Q: Explain the statement true or false. Give an example to explain your answer. "It is possible to have...

A: According to Pareto efficiency, it is not possible to increase one person utility or welfare of one ...

Q: What is Nehru _ Mehallobian strategy critically evaluate the achievements and short comings of the m...

A: Nehru Mehallobian strategy: this Model draws intensely from Feldman–Mahalanobis model, which is a Ne...

Q: You are the manager of a train company. Recently total sales have been a bit low and you are now con...

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first question...

Q: I hope you can draw a picture and analyze it, thank you.

A: Answer: Introduction: Dominant strategy: a strategy is said to be the dominant strategy if a player ...

Q: If the reserve requirement is 4 percent, what is the money multiplier?

A: Money multiplier represents how an initial deposit leads to increase in final money supply. 

Q: 3. Suppose that Wanda owns a fish shop and that she employs students to sort and pack fish. Students...

A: To maximize profit a firm should employ the quantity of a resource at which its marginal revenue pro...

Q: 75% 4. Rasiah's Garden of fruit is a firm selling fruits in a perfectly competitive market Total fix...

A: Cost structure refers to the different types of cost associated with the production and selling of t...

Q: Robert can make 10 pizzas each hour. He works 8 hours each day. He is paid $100 a day. The shop can ...

A: Total pizzas produced in a day can be calculated as follows: Total pizzas per day=10×8=80  

Q: Please help me to answer this question, thanks

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per se...

Q: It is known that the variance of a population equals 20. A random sample of 144 observations is goin...

A: Margin of error = C.I × [(S.D)÷n]½ Where S.D = standard deviation. 

Q: Suppose that a firm is producing in the short run with output given by: Q = 73L - L2The firm hires l...

A: The marginal productivity(MP) of labor(L) gives additional units output(Q) produced by an additional...

Q: = 1, 500 – 3x² . Find the consumer's surplus if The demand for a particular item is given by the fun...

A: Answer to the question is as follows :

Q: If the foreign interest rate increases________?Group of answer choices 1The exchange rate is unaffec...

A: Foreign interest rate- It might have a positive or negative effect on foreign bonds or other assets ...

Q: Use the following diagram representing a monopoly to answer the following questions P MC ATC 12 11 8...

A: A monopolist is the sole seller of a commodity for which there are no close substitutes. Therefore t...

Q: Which one is an option for health insurance market     Universal public insurance     Compul...

A: Health insurance- It covers the medical and surgical expenses of the individual who is insured. 

Q: Mara and Dona are both consumers and producers of butter and bread. They are both living in a barter...

A: Terms of trade: The terms of exchange is the general cost of fares as far as imports and is characte...

Q: Consider two students, Hana and Avan at AUIS. Both students are taking their final exam in their eco...

A: Given the payoffs, the following would be the payoff matrix.     Hannah       Conceal reveal ...

Q: Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750 ml size is ...

A: Total revenue (TR) function can be obtained by using the following formula.

Q: For the United States in 2016, a Gini coefficient of 0.415 suggests that: OA. the United States has ...

A: The Gini Coefficient is the measures of income inequality in the country. 

Q: The demand for a good increases when the price of a substitute ________ and also increases whenthe p...

A: Substitute goods are those goods which can be used in place of each other. They give almost similar ...

Q: Suppose that the coronavirus pandemic (COVID 19) in 2020 has resulted in a leftward shift ofthe aggr...

A: The corona virus pandemic has resulted in millions of job lost due to lockdown in all over the world...

Q: List four primary goals governments strive to achieve in order to improve a country's macroeconomy a...

A: Below are the four primary goals. Low unemployment Lower inflation Fair distribution of income Econ...