Price is NOT a firm decision variable in a( n ) ________ industry. a. oligopolistic b. monopolistically competitive c. perfectly competitively d. monopolistic
Q: The IS curve will not shift when which of the following occurs? An increase in government spending.…
A: In economics, the IS-LM model is used by the policymakers to analyze the overall economic condition…
Q: 1. Suppose the government mandates a 3-year licensure for contractors and bans working on your own…
A: Note: We will answer the first question as the exact one was not specified. Please resubmit the new…
Q: Suppose that the monopolist can produce with total cost: TC = 20Q. Assume that the monopolist sells…
A: Monopoly market refers to the market structure that can be identified by one seller, who sells a…
Q: The bank is paying 8.35% compounded annually. The inflation is expected to be 5.59% per year. What…
A: Interest paid by bank = 8.35% Compounded annually Expected inflation = 5.59% per year
Q: Define the terms briefly: What is reserve price? What do we understand by the phrase" costs do not…
A:
Q: Suppose the actual level of output in the economy is $1,765 million and the estimated natural rate…
A: Given Information, Actual level of output in the economy = $1,765 million Estimated level of output…
Q: Suppose that changes in the bank regulations expand the availability of credit cards so that people…
A: [a] As given, holding cash is not required anymore which means money is less demanded by the people…
Q: Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain…
A: The whole cost of producing a product may be included in a company's financial records as the cost…
Q: If the aggregate supply curve shifted from AS0 to AS1 and the aggregate demand curve remains at AD0,…
A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…
Q: In this Decision Point you learned a little about inflation and inflation expectations. Apply what…
A: Real wage is the wage rate adjusted for inflation. Nominal wage does not account for inflation.
Q: A secondhand van is offered for sale. The owner offers two methods of payment. The first method…
A: First going to Compute, the present value of the payments i = 5% compounded monthly = 5/12 % =…
Q: a) Discuss advantages and disadvantages when government imposes price ceiling.
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 1. If the marginal product equals the average product of physicians, then the average product of…
A: Marginal product is the additional output produced by employing an additional unit of input.
Q: You decide to purchase a tractor for a net cost of $350,000. You finance this tractor for 5 years at…
A: Loan amount = $350,000 Interest rate = 5% Number of payments = 5 Payment frequency = Annually (1…
Q: Now, suppose the research lab has the property rights to the lake, including the right to pollute…
A: Given: Economic profit from recycling: Research lab=$ 1500 per week Hiking lodge=$ 1800 per week
Q: A monopolistʹs supply of a good is a.given by the portion of the monopolistʹs marginal cost curve…
A: A monopoly is a market structure in which only one firm operates the market with no close…
Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public…
A: In a closed economy, GDP is the sum of consumption expenditure, investment spending, government…
Q: What is inter-temporal efficency and what are the equilibrium conditions for how resources are…
A: It refers to how current actions impact future options.. In theory, not consuming now may result in…
Q: Qd=5.3-0.1p where Qd is the number of new automobiles demanded per year (in millions) when P is the…
A: The demand equation: Qd = 5.3 - 0.1P whereas, Qd = Number of new automobiles demanded per year (in…
Q: If you were a secondary employer confronted with a threatened product picket action at your retail…
A: Labor unions strive to achieve economic and social equality in the workplace for our…
Q: A consumer is faced with the followlling Utility Function, U(x, x2) = (x 1+ x ) e, where 0<p<1. The…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Determine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a…
A: Cost is the expenditure that is incurred in the production of goods and services in an economy. The…
Q: 1. Why is awareness of the issue of sustainable development important to oneself, family, community,…
A: Sustainable development is a concept that aims to achieve human development objectives while…
Q: Richard Thaler provides three criticisms of the homo economicus model in his book “Missbehaving”.…
A: With the first salvo of wit that will characterise the entire book, Richard Thaler claims that…
Q: Quantity Demanded Price Quantity Supplied 5…
A: Demand schedule shows the different combinations of quantity demanded at different prices. Supply…
Q: 175 Given the demand function D(p) %3D Find the Elasticity of Demand at a price of $63
A: The elasticity of demand measures the responsiveness of quantity demanded the respect to change in…
Q: -) Consider a two-person, two-commodity, pure exchange, co economy. The consumers' utility functions…
A: *Answer:
Q: What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2…
A: For a consideration to be real, both sides must make a pledge. This means that one party must make a…
Q: a) If Kyeiwaa has GhC 50 of non-labor income per week, and she faces a market wage rate of GhC 5 per…
A:
Q: Suppose that the monopolist sells its goods for two segments of the population and the demand…
A: A monopolist is defined by a lack of competition, which may result in excessive consumer prices,…
Q: 5) The First cost of a passenger bus is P800,000. Its estimated life is 4 years with no salvage…
A: The annual worth or AW method refers to the value for an alternative, comprising of two prime…
Q: A government decides to introduce an expenditure switching measures to reduce a balance of trade…
A: Expenditure Switching Policy is the one which affects the country's expenditure composition on…
Q: Draw a supply and demand graph showing rent control. Indicate the black market price. Does rent…
A: Rent-controlled properties create substantial negative externalities on the nearby real estate…
Q: Which of the following statements is true if the price is $10 in the graph above? Question 9…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: It is possible for a monopolist's to earn economic profits even in the long run due to: a. its…
A: Monopoly is a market arrangement in which there is only one vendor of a good with complete market…
Q: Instructions: Click the buttons above the graphing window to show either production functions or…
A: Productivity in the following tables can be found out by dividing output by the number of workers.…
Q: Which of the following statements is correct? Multiple Choice If supply decreases and demand…
A: Equilibrium occurs where quantity demanded equals quantity supplied, that is at the intersection of…
Q: e figure below shows the domestic demand (Dd) and domestic supply d) curves of mopeds in a country…
A: We have, World Price = Pw= $750 New export price with quota = Pw+q = $715 Domestic Price = Pd = $800…
Q: Question 4: In order to recover economy from fluctuation, the governments and central banks often…
A: Instability in the economy is caused by many factors and the government tru to stabilize the economy…
Q: 2.The shoe company in Marikina have decided to increase to 18% per pair of shoes to due to its high…
A: Percentage Change in Price = 18% Original Price = 599 Original Demand of Shoes (in pairs) = 500…
Q: 1. Suppose the economy has fallen into a recession (output level ?0), and the federal government…
A:
Q: Do you agree or disagree that the trade policies can assume varying dimensions and scope depending…
A: If we consider the trade policies then it is made in order to provide benefits to many economies…
Q: Which of the following would1 the Qd of LF? Select one: O A. expected profit decreases. B. the real…
A: The loanable funds concept is a market interest rate hypothesis in economics. The interest rate is…
Q: Explain the concept of supply curve? Show the relationship between the Short run supply curve and…
A:
Q: The following diagram represents market for a normal goud. Demand and Supply Price $10 $9 $8…
A: [a]Equilibrium is attained where demand = supply.Thus, equilibrium price is $5 and equilibrium…
Q: For each scenario below, determine which challenge of measuring the true cost of living—quality…
A: Substitution bias:- When customers adjust their purchase behaviour in reaction to price…
Q: Price discrimination is indistinguishable from dumping. Discuss the accuracy of this statement?
A: The correct answer is given in the second step .
Q: Answer the questions below using the following linear equations: 2y - x = 12 3x + 2y = 36 Where…
A:
Q: When do you release a retentiong guarantee/bond?
A: A retention bond is a kind of performance bond that protects the customer in the scenario when the…
Q: According to Richard Thaler, what two things give economics its reputation as the most powerful…
A: Thaler theory is all about the endowment effect and include the economic rationality in the…
Step by step
Solved in 2 steps
- The Specialty Cake Store, a monopolistically competitive firm, is producing 200 decorated cakes per day and selling each cake for $12. At that production level ATC is $20, AVC is $15, AFC is $5, and both MR and MC are $8. This firm should Question 9Answer a. increase output to the point where price equals marginal cost. b. shut down and just pay fixed costs. c. decrease output to the point where marginal cost equals average cost. d. continue to produce 200 cakes, as price is greater than AFC.In the long run, the economic profits in a monopolistically competitive industry tend to go towards zero. The main reason for this is: a differentiated products. b diseconomies of scale. c increased regulatory pressure on profitable firms. d free entry.The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. One day, consumer advocate Jif Skippy discovers that all brands of peanut butter in Nutville are identical. Thereafter, the market becomes perfectly competitive and again reaches its long-run equilibrium. Using an appropriate diagram, explain whether each of the following variables increases, decreases, or stays the same for a typical firm in the market. Price Quantity Average total cost Marginal cost Profit please answer all 5 parts
- Consider perfect competition and monopolistic competition. In which market structure(s) will we see price equal to marginal cost at the last unit produced in the long-run equilibrium? a perfect competition b monopolistic competition c both perfect and monopolistic competition d neitherExcess capacity is a. an example of the inefficiencies of monopolistically competitive markets. b. a short-run problem but not a long-run problem. c. a characteristic of rising average total cost curves. d. Both a and b are correct.In a perfectly competitive market, the demand curve is the marginal revenue curve. Is this the case in a monopolistically competitive market? Why? Price effect: Output effect:
- (Short-Run Profit Maximization) A monopolisticallycompetitive firm faces the following demand and coststructure in the short run: a. Complete the table.b. What is the highest profit or lowest loss available tothis firm?c. Should this firm operate or shut down in the short run?Why?d. What is the relationship between marginal revenue andmarginal cost as the firm increases output?In the long run, zero economic profit exists in monopolistic competition and perfect competition. true or falseWhich of the following conditions does NOT describe afirm in a monopolistically competitive market?a. It sells a product different from its competitors.b. It takes its price as given by market conditions.c. It maximizes profit both in the short run and inthe long run.d. It has the freedom to enter or exit in the long run.
- Samurai Sam's, a producer of frozen sushi, is a monopolistically competitive firm. The firm is currently selling frozen California rolls at a $4 price. Samurai Sam's marginal cost is $1.75 and its marginal revenue is $1.50. The firm should ________ to maximize profits in the short run. Question 7Answer a. continue to produce the same output level b. decrease output to where marginal revenue just equals marginal cost c. increase output to where marginal revenue just equals marginal cost d. Indeterminate from the given information.Suppose the monopolistically competitive firm is charging a price equal to average total cost. The the monopolistically competitive firm should Question 4 options: a) increase its output b) decrease its output c) is operating in the long run d) can expect new firms to enterIn monopolistically competitive markets, products are ____ and entry is ____. Select one: a. differentiated; free b. identical; free c. differentiated; hard d. identical; hard