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Q: determine whether the following statements are true or false:
a) Average fixed costs increase when the total volume of the produced goods increases.
b) If the market price is constant, the increase in output will not affect the size of the firm's profit.
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- A firm orders 12, 30 and 25 items of goods G1, G2 and G3. The cost of each item of G1, G2 and G3 is $8, $30 and $15, respectively.(a) Write down suitable price and quantity vectors, and use matrix multiplication to work out the total cost of the order.(b) Write down the new price vector when the cost of G1 rises by 20%, the cost of G2 falls by 10% and the cost of G3 is unaltered. Use matrix multiplication to work out the new cost of the order and hence find the overall percentage change in total cost.Which statement is true? Group of answer choices A competitive market maximises total surplus as all the gains from trade are realized. In a competitive market all trade for which the MB is greater than or equal to the MC of production take place. If output was increased beyond the traded in a competitive market total surplus would decrease. The competitive equilibrium outcome is Pareto efficient. All of the above. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.New Zealand possums produce the highest quality fur, due to the large pelts per body size. Demand for New Zealand possums’ products has risen dramatically. This is partly a result of the conservation benefits of harvesting New Zealand possums. This has made the product seem more environment friendly than other fur products and boosted sales to concerned consumers. Assume that the possums market satisfies all the attributes of a competitive market. Further assume that high grade possum furs are the most expensive input into the possum fur production function. 1. Use a graph of the market for possum fur to demonstrate the effect of its environmentally friendly status on the market equilibrium. 2. Graph the reaction of an individual incumbent firm to the increase in market demand. In your graph, identify the firm’s revenue and cost structures. 3. What would you predict would happen to long-run industry supply if the price of possum fur increased as possum culling increased their…
- New Zealand possums produce the highest quality fur, due to the large pelts per body size. Demand for New Zealand possums’ products has risen dramatically. This is partly a result of the conservation benefits of harvesting New Zealand possums. This has made the product seem more environment friendly than other fur products and boosted sales to concerned consumers. Assume that the possums market satisfies all the attributes of a competitive market. Further assume that high grade possum furs are the most expensive input into the possum fur production function. 1. Use a graph of the market for possum fur to demonstrate the effect of its environmentally friendly status on the market equilibrium. 2. Graph the reaction of an individual incumbent firm to the increase in market demand. In your graph, identify the firm’s revenue and cost structures. 3. What would you predict would happen to long-run industry supply if the price of possum fur increased as possum culling increased their…A manufacturing business can supply 60 plasma TV sets per month at a price of $280 per set, or sell 140 plasma TV sets if the price is $370 per set. A group of retailers will buy 80 plasma TV’s if the price is $350 per pair and 120 plasma TV’s if the price is $300 per set. Given that the demand and supply functions must be linear: Find the linear equations representing both demand and supply Find the point of market equilibrium (number of TVs: q) and the price per unit (p) at that point.The total revenue and cost functions of a firm are as follows, respectively: TR(Q) = 10Q – 1,5 Q2TC(Q)= 1,5Q2 Calculate the profit maximizing production level, price and total profit according to the following situations. Discuss the likely outcome/expectation for each situation. a. Find the firm's profit maximizing production level and profit, price and total revenue at this level.b. Find the income-maximizing production level and the profit, price, and total income at that level.
- The marketing department of a business has determined that the demand for a product can be modeled by p=2000−10x, where p is the price per unit (in dollars) and x is the number of units. The cost (in dollars) of a producing x units is given by C=2000+500x. What price will yield a maximum profit?It is known that the demand function for a good is shown by the equation P = - 5Q + 110 and the total cost of production is C = 100 + 10Q + 5Q². Calculate the maximum profit rate of sales, the amount of profit and the selling price per unit.1.The price p in dollars of a certain commodity and the quantity x sold obey the demand equation p= -1/5x + 200 where 0<=x <=1000. Suppose that the cost C in dollars of producing x units is C= the square root of x divided by 10 + 400. Assuming that all items produced are sold, find the cost of c as a function of the price p.
- The implications of diminishing marginal returns is that: Group of answer choices beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point. because of economies and diseconomies of scale, a competitive firm's long-run average total cost curve will be U-shaped. the demand for goods produced by purely competitive industries is downsloping.Suppose you observe that a particular business has earned positive profits over time and maintained a large share of the market. Which of the following is likely to be true? Group of answer choices Demand for the product is probably elastic The business must be engaging in price discrimination There is probably a barrier to entry preventing new firms from competing Supply must be inelastic Government intervention in this market is probably limitedQ1: New technology introduced which reduces cost of producing of hybrid cars. Graph pre-market equilibrium and post market equilibrium. Q2: Importance of elasticity in decision making for consumers and producers, explain your concept by plotting separate graphs.