• Please explain why the long run economic profit is zero under a perfectly competitive market in your own words.

Q: will be the market price? If both firms collude and share the output equally, what is the revenue to...

A: Assuming two firms are there X and Y , production happens only with fixed cost and both the firm pro...

Q: QUESTION 41 Currently, the euro is being used by of the European Union.(closest number) O A. 19 memb...

A: When talking about European union, it can be seen that there are 27 countries who are the member of ...

Q: Consider the MPL is currently given by MPL=30/L. The supply of labor in the country is L=10. Consid...

A: (1) Labor demand equation: MPL = w Where 'w' is real wage => (30/L) = w => L = (30 / w) ------...

Q: Suppose that Romeo in Problem 8 has the utility function U= S° RS2,and Juliet has the utility functi...

A: We do not need to use the Lagrangean to solve this.    Since the utility fuctions for both are symme...

Q: We add the demands of private goods horizontally but add the demands of public goods vertically when...

A: There are four types of goods- Public, private, club, and common goods. the public good is non-exclu...

Q: what is differentiation? What are some forms of differentiation in washing detergents? How does diff...

A: A differentiation strategy is a methodology organizations create by giving clients something special...

Q: The Situation It is time to negotiate a new contract with some of Lightning Wholesale's unionized em...

A:    The company increases salary by 3% so monthly wage increases by 4000*0.03=$120 and yearly wage in...

Q: QUESTION 31 Country A imports $40 of shirts and exports $40 of under wears. Its balance of trade is ...

A: All answers for 31 32, 33 given below,  

Q: why is the economy not self-correcting? What can be done about it?

A: The principle that if economy is left to its own devices is called self-correcting. When an economy ...

Q: 1. y= 9x2 - 6x + 10 2. y 2x- 3x2 +1

A:

Q: Identify the effect of decrease in bank rates on either demand or supply curve and the equilibruim i...

A: Bank rates The interest rate basically refers to which a country's central bank lends money to domes...

Q: 16. Consider an infinitely repeated game where, in each round, two firms compete a la Bertrand in a ...

A: Given: p = 300 - 2q MC = 20 Total Revenue (TR) = p*q = 300q - 2q2  Marginal Revenue (MR) = dTR/dq MR...

Q: QUESTION 8 The nearest and largest trading partner with the United States is: OA. Canada. B. Mexico ...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: Define the opportunity cost . What is the significance of opportunity cost in economics.

A: Opportunity Cost Opportunity cost is the cost of next best foregone.When a person, an investor, or a...

Q: economics, money refers to wealth income currency assets used and accepted as payment.

A: Money consider as a medium of trade, as a store of significant value, and as a unit of record. Mode ...

Q: what is the expectancy for females and males? what is the difference? compare statistics of developi...

A: There are 17 goals under sustainable development, goal 3 is related to good health and well-being. I...

Q: Assume two moms live next to each other and both have one preschooler. They meet each other for the ...

A: GDP(gross domestic product) is the sum total of goods and services produced in an economy in a given...

Q: 3- A company borrows $ 100.000 today at 12% nominal annual interest compounded monthly. Find the mon...

A: The information given is:- Borrowed amount = $100,000 Nominal annual interest rate = 12%  Tenure = 5...

Q: A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total...

A: Given:P=90-Q4TC=1/4Q2-6Q+40 Now,TR=P×QTR=90-Q4×QTR=90Q-Q24  

Q: Select the correct answer below O for each firm when antitrust regulators split this company eacly i...

A: A natural monopoly is a monopoly that exists due to a higher fixed cost of production. This creates ...

Q: 5. Use the following table which shows the TR and TVC schedules of a hypothetical monopoly for the n...

A: Total variable cost is subtracted from the firm's total revenue to arrive at gross profit. Total fix...

Q: MSC MSB 100 200 300 400 500 600 Quantity (pounds of coffee per day) The above figure shows the margi...

A: Marginal social cost is the cost that is incurred by whole society. It refers to the sum of private ...

Q: Labor Market:Government raises the minimum wage from $8/hour to $12/hour; the current wage is $10/ho...

A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor employe...

Q: The country of Panem produces only bow and arrow. Quantities and prices of these goods for the last ...

A: Inflation rate in year 2011 is computed using the formula: Inflation rate in 2011=GDP deflator in ye...

Q: Rock-paper-scissors is a game in which players typically use mixed strategies. Can you think of othe...

A: The theory for conceiving social situations among the players that are competing and producing optim...

Q: GNP minus depreciation is NNP. national income. O retained earnings. GDP.

A: Gross National Product:- The worth of all commodities generated by a nation's population and enterpr...

Q: Determine the ERR of the engineering project shown below when the MARR is 18% per year and the reinv...

A: * SOLUTION :-  Given that ,    The MARR is = 18% The reinvestment rate is = 15%

Q: Describe how to establish the "approximate price level" using demand-oriented, cost-oriented, profit...

A: Methods for estimating a "price-lever" include: Demand-driven strategy We determine an approximate p...

Q: If a good that generates negative externalities is priced to internalize the externality, then its p...

A: Money has been critically evaluated and has been evolved since the ages and currently money is used ...

Q: Question 2. Let p(t) represent the consumer price index at any given point in time. The change of th...

A: Change in price index: p. = 2+3t + 0.5it  p0 =100 

Q: Aggregate price level LRAS SRAS AD Real GDP Yp Y1 potential output Reference: Ref 13-3 (Figure: Shor...

A: Given:- Equilibrium is attained at point E1 and X-axis shows Real GDP and Y-axis shows Aggregate pri...

Q: Firm A and firm B sell identical Soma to a market that has inverse demand p= 120 – Q where Q is tota...

A: Cournot equilibrium price and quantity quantity produced by firm A=q1 quantity produced by firm B=q2...

Q: After economics class one day, your friend suggests that taxing food would be a good way to raise re...

A: The curve that depicts various quantities being demanded by individuals at various levels of price i...

Q: 11. Describe what happens to quantity of labor supplied when wages are at the equilibrium level, abo...

A: Labor: - labor is one of the factors of production, any physical and mental work by humans against a...

Q: Consider an OLG economy where each generation has 20 bananas when young, and 12 bananas when old. Su...

A: One of the dominant frameworks of analysis in the study of macroeconomic dynamics and economic growt...

Q: D. All of the following are determinants of demand except

A: To find : What is determinants of demand except. 

Q: Consider the closed-economy model of the money market in which, the demand for real balances depends...

A: Given information Money demand function M/P=L(i,Y-T) M/D= real money demand  i= interest rate Y-T= d...

Q: nt in the price of cars results in an increase of 30 percent in quantity dem

A: The amount of goods and services that are required by the people in the society is called quantity d...

Q: d. Now suppose the price of labour rises to $5 per unit, but the firm still wants to produce 500 tir...

A: An isoquant is the equal quantity curve that shows the combination of two inputs yields the same out...

Q: Consider a competitive, price-taking firm that employs only one variable input, labor, to produce a ...

A: In perfect competition, many buyers and sellers are selling homogenous products. In this market, the...

Q: An investment has the following cash flow series where interest is 7%: End of Year 0 1 2 3 4 5 6 7 8...

A: Given  r= 7% End of year 0 1 2 3 4 5 6 7 8 Cash flow 150 300 450 0 -500 0 600 700 800

Q: Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full employmen...

A: A natural economy - is a kind of economy wherein cash isn't utilized in the exchange of assets among...

Q: Review the logic of spuriousness. Can youthink up an example where an observedrelationship between t...

A: Jueda defines spurious logic as "a mathematical relationship in which two or more events or variable...

Q: A monopolist suffers a loss if its curve is everywhere above its curve. O a. Demand; ATC O b. ATC; M...

A: (1) A demand curve shows the price corresponding to each output. ATC curve shows the average total c...

Q: Free markets___ 0. always fail to produce the optimal quantity and/or price 0. can fail to provide t...

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: A Managment instutute can operate for a maxium 12 hours .lectures are the outout of the institute an...

A: A function asserts the relationship between one input and one output, or many inputs to yield a sing...

Q: QUESTION 42 For participating countries, a drawback of a single currency in Europe is that A. costs ...

A: In the European union, approx 19 members have euro as the official currency, which implies that they...

Q: In the foreign exchange market, if the U.S. interest rate rises relative to interest rates in other ...

A: An exchange rate regime is the method by which a country manages its currency in the foreign exchang...

Q: in both cities; and (11) third-degree price discrimination. difference in profits between these two ...

A: A monopolist firm setting two different price level in two cities A and B with respective demand fun...

Q: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC 9M...

A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC = ...

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.