Short-Run P Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55 460 1675 600 Refer to Figure 8-3-2. When the market price equals $50, what is the profit maximizing output? 675 O 460 O 600
Q: In the short run, what happens to the solow growth model when there is technological advancement?…
A: The solow model argues that over the long run, growth depends on the technological changes. the…
Q: In a bygone day, airlines issued discount tickets to students who would be willing to fly on a…
A: Price discrimination refers to a marketing strategy in which a vendor charges different types prices…
Q: If the government is running a fiscal deficit, it can only finance it through monetization. true or…
A: To finance the deficit, the government borrows money from the central bank and repays it by selling…
Q: If nominal GDP rises: real GDP must fall. real GDP must also rise. real GDP may either rise or fall.…
A: Nominal GDP is the value of the basket of all goods and services at the current year prices. So,…
Q: This is a graph showing the CPI evolution. Identify the different concepts below. Use the…
A: A currency's buying power depreciates with time, known as inflation.Over a period of time, an…
Q: Suppose that every driver faces a 4% probability of an automobile accident every year. An accident…
A: Given; Probability of loss= 0.04 Average cost of accident to each driver= $5000 Two types of…
Q: Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve…
A: It is given that the central bank, sells $10M of bonds Reserve Requirement = 10%
Q: Q2. Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first…
A: Compounding basically refers to an asset's ability that can generate returns that are then…
Q: Select and explain at least one factor influencing health economics.
A: Health economics refers to a branch of economics that studies the efficiency, effectiveness, values,…
Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as…
A: Average = (Sum of observation / Number of observation) A negative growth rate implies recession.
Q: Suppose the government forces the price to be below the equilibrium. Is this called a price floor…
A: Price control refers to restrictions imposed by the government in free market economy on the price…
Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…
A: A lender charges a borrower an interest rate that is a percentage of the principal (the amount…
Q: in the Ethereum, can we remove the receipt root hash in block header? Explain the reasons.
A: Ethereum is a blockchain system that is decentralized, open-source, and has its cryptocurrency.
Q: Problem 17.051: Calculate the after-tax PW of two alternatives Perform a present worth (PW)-based…
A: Present-worth (PW) based evaluation is one of the ways for evaluating a group of options using…
Q: he gym teacher wants to know how many students attend games. She asks 80 students throughout the…
A: Sample is known as the data that is gathered to represent the features of the population. In this…
Q: baid along with P620 of interest. Determine the following: 1. Discount rate, %? 2. What is the…
A: Both part solved below,
Q: 1. Total present worth of all cash flows. Is the sum a positive net cash flow or a negative net cash…
A: In this question we have:- a series of cash flows : • a cash flow of P375 at the end of the 2nd,…
Q: Suppose that the economy is characterized by the following behavioral equations: C = 180 + 0.75YD |…
A: Equilibrium occurs where demand equals production.
Q: They act as mediators between two parties: those who supply funds and those who seek them. * A.…
A: Companies that deal in financial and monetary transactions are classified as financial institutions.…
Q: Consider a market competing under Cournot Quantity Competition. There are two firms in this market:…
A: We have given demand function and marginal costs, we can find the profit function as
Q: For a perfectly competitive firm total revenue: A. is price times quantity sold B. increases by a…
A: Perfect competition refers to the market structure where there are large number of firms selling…
Q: F. Consider, a discrete compounding scheme of a nominal interest rate of 12%. Chis scheme issues…
A: Future worth is the sum that a resource will be worth starting sometime in a future date, in light…
Q: Because financial intermediaries operate on a big scale, this relates to minimizing the costs of…
A: A firm producing output can yield increasing, decreasing or constant returns to scale.
Q: (b) Assume that the household in an economy spend 75% of their extra income. Calculate the change of…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose due to the deepening crisis in the Middle East, there is a hike in the crude oil price.…
A: a) The petrol market:- Increase in crude oil price will cause increase in price of petrol. As the…
Q: A simple and convenient first choice to explain the behavior of firms is through the profit motive.…
A: For every type of firm in a competitive market, the profit maximization is an important aspect to…
Q: The production period during which the firm can alter its use of all inputs is known as the Olong…
A: The goods utilised in the creation of other commodities and services are referred to as inputs.…
Q: L Find a mixed strategy o2 (q, 1-q) for Player 2 that will make Player 1 indifferent about his…
A:
Q: . Your mother owns and runs an arts and craft store, and the business is doing well. She would have…
A: An economic profit is the difference between the revenue a commercial entity has received from its…
Q: 5. a) "Fiscal policy is completely crowded out in a small open economy with floating exchange rate…
A: The answer for both the parts is as follows:-
Q: H(E) = aE - bE?, with a, b representing positive constants and E is fishing effort. %3D Total cost…
A: Introduction c) Harvest function: H (E) = aE - bE2 Here a, b are positive constant. Total cost = cE…
Q: Quotas may be set on worldwide imports or on imports from a specific country.True or False
A: A trade restriction or trade barrier is an artificial constraint on the trade of commodities and…
Q: 1. Using general equilibrium analysis, and taking into account feedback effects, analyze the…
A: When demand and supply are in balance(equal to each other), the market is said to be in equilibrium.…
Q: Scenario1: I choose Almarai company a. If your company can make two goods, use a numerical table and…
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: Using general equilibrium analysis, and taking into account feedback effects, analyze the following:…
A: The outbreaks of diseases affect the supply of chicken and beef on the chicken farms. As the result,…
Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…
A: Profit maximization refers to a scenario in which a firm maximizes its profit by producing at a…
Q: y had a series of 12 semi-annual payments of P 12,000 at the end of every 6 months. After 6 ars he…
A: Ordinary annuity is a type of annuity in which instalment payments are made at the conclusion of…
Q: Explain the consumer equilibrium condition according to utility theory. Include in your answer the…
A: Equilibrium of a Single Good: When a consumer buys a commodity, he stops when the price and utility…
Q: Suppose the Machine rental rate decreases from $20 per hour to $10 per hour, while the rental rate…
A: An isoquant is a representation of all conceivable combinations of elements that produce a certain…
Q: Demand is said to be inelastic if Select one: a. buyers respond substantially to changes in the…
A: Elasticity is a term used in economics to describe how the quantity sought or supplied changes in…
Q: What is deadweight loss? How is it illustrated on a demand and supply diagram? GIve an example of…
A: Answer: Deadweight loss: deadweight loss occurs due to market inefficiency. When the market is not…
Q: Please refer to the figure below. The equation for p = 105-0.00 25,000+65L Y D (units sold)…
A: Given information: P = 105 - 0.005DTC = 25000 + 65D
Q: Determine the multifactor productivity for the combined input of the labor and the machine time…
A: Multifactor productivity is the ratio of output and combined costs of inputs and it determines the…
Q: The following are correct about financial intermediaries, EXCEPT? * A. Financial intermediaries are…
A: In the financial markets, financial intermediaries are the firms or people, who act as the…
Q: A stable inflation rate is necessary to forecast business activities and make better investment…
A: Answer to the question is as follows:
Q: Given the current balance sheet of the Federal Reserve, if the Federal Reserve buys Treasury…
A: When Fed buys treasury securities from open market operations it is engaged in expansionary…
Q: Which of these statements does not apply to market economies? Select one: a. Prices ensure that…
A: Lower the price, quantity demanded of good by a buyer is high while higher the price, quantity…
Q: Mahsuri Bank which is one of the local bankS in your community has the following balance sheet (in…
A: Required reserve ratio implies the percent of demand deposit that a bank needs to keep in reserve…
Q: 3. A firm has the following total-cost and demand functions: C = }Q – 7Q? + 111Q+50 %3D Q = 100 P…
A: Given; Cost function; C=13Q3-7Q2+111Q+50 Demand Function; Q=100-P…
Q: Suppose that demand for anchovy pizza is given by PD=50−QD, and the supply of anchovy pizza is given…
A: Bad smell from pizza generates negative externality to third party who is not a part of transaction.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?A friend of yours is considering two cell phone service providers. Provider A charges 120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges 1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD = 150 50P, where P is the price of a minute. a. With each provider, what is the cost to your friend of an extra minute on the phone? b. In light of your answer to (a), how many minutes with each provider would your friend talk on the phone? c. How much would she end up paying each provider every month? d. How much consumer surplus would she obtain with each provider? (Hint: Graph the demand curve and recall the formula for the area of a triangle.) e. Which provider would you recommend that your friend choose? Why?You are working for the chiefeconomist at Microsoft. Microsoft’s only significantcosts to producing and distributing a new version itit’s operating system is $30,000 in wages to itsemployees, $15,000 in computer testing, and$5,000 in utilities. Microsoft’s marketing department estimates that thedemand a new version it it’s operating system is Q = 320 – 0.5 P, with Pmeasured in dollars.What price should Microsoft charge for a new version it it’s operatingsystem? What profit should Microsoft expect?
- A computer store sells WP and SS. Given below are themaximum amounts two consumers will pay for these goods and for a bundle that contains bothgoods. WP SS Bundle carolina $100 $90 $190 shawn $90 $40 $130 (a) What is the firm’s revenue if it sells the WP at a price of $90 and the SSat a price of $90? The goods are only available individually and not as a bundle. Please showyour calculations.(b) Will the firm charge $130 or $190 for the bundle if it wants to earn maximum revenue?Assume that the goods are only sold as a bundle and not available separately. Please explain.(c) Will selling individually or selling a bundle result in higher revenues?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 $250Calvin buys a new tractor for $125,000. He receives consumer surplus of $13,000 on his purchase. What is Calvin's willingness to pay? a. $138,000 b. $13,000 c. $125,000 d. $125,000
- Suppose a new employer is also relocatingto Lampard City and will be attractingmany new people who will want to buynew houses. Assume that the change in licensing requirements mentioned in Ques-tion 7 occurs at the same time. What do you think will happen to the equilibriumquantity of new homes bought and sold inLampard City?a. It will decrease substantially.b. It will decrease but not by much.c. It will increase.d. Not enough information.d. Find equilibrium (p, Q, q) if Qd = 25 – 5pe. Find equilibrium (p, Q, q) if Qd = 500 – 2pf. How much profit is made in this last case?g. What price would give zero profit?Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C Where, Qd = Quantity demand for a deluxe room in sh Psh = Price of a deluxe room in sh (US$/room) = US$. 200.00 M = Visitors per capita income (US$/Day) = US$ 120 Pcg = Price of a deluxe room in CG (US$/room) = US$. 150.00 Ax = Average advertising expenditure in sh (US$/room) US$. 18.00 C = Customer Satisfaction Index = 8.56 DV: Q R- Square: 0.86 T table value 1.671 No of obse: 62 F- Ratio: 154.15 Var Para Esti SE β0 127.8 49.6 β1 -1.3.0 0.42 β2 2.75 1.01 β3 2.55 1.21 β4 1.41 0.48 β5 1.85 0.23 a) Are estimated parameters comparable with economic theory? why ,What are the significant parameters that could be impact on the demand for a deluxe room b) Construct the Total Revenue (TR) function of Sh hotel and determine the TR maximize demand c) Calculate and interpret, cross-price elasticity, income elasticity, and advertising elasticity of demand for a deluxe room and Calculate Adjusted R2 and interpret it.
- Q3. Mary works on a part-time job with a monthly income $300. She spends money only infitness centre and other goods represented as composite good with a price of 1$/unit. Thefitness centre membership costs her $50 per month, and she can work out in the centre up to20 visite per month for free. Each additional visit beyond 20 will cost her $5/visit. (Hints;assume that x is the fitnese centre visite, and y is a composite good $1/unit.] a) Write down and simplify Mary's budget constraint function(s).b) Draw Mary's budget line with clear labels,Use the folowing graph for a competive market to arswer the question below. Aprce noor or 3 v per unit was result in Mueple Choke. thorage of 200 ints wonto of 200 ints No unowe e wast So iners teing radedAssume that there is only a single seller of papadums, and she knows eachbuyer’s willingness to pay. Assume that this seller incurs a cost of $4.00 perunit of papadum produced (i.e., the marginal cost is constant). If she intends to maximise profits, how many papadums would this seller supply to the market, and what price would she charge? Remember, the price has to be the same for each unit sold. Hint: start at a price of $17 and calculate what profit would be. Then lower the price just enough to attract an additional buyer and calculate what the new profit would be. Repeat this until all four buyers are purchasing the good and then check which price yields the highest profit. Alternatively, you can calculate the marginal revenue from lowering the price to attract an additional buyer and compare it to marginal cost.