Suppose a competitive industry has 1,000 identical firms. After years of firms entering and exiting this industry the market is now in a stable equilibrium where all surviving firms are of the optimal size (their fixed costs are exactly such that the long run costs and short run costs are identical). Each firm has a total cost curve of: TC = 2 + 4q + .5q2. This total cost curve implies a marginal cost curve of: MC = 4 + q. a) How much will each firm produce? b) What is the equilibrium price in this market?

Q: In the Plantation economy model, the Golden Age exhibited which one of the following…

A: The Plantation Economy Model is defined as a model which is based on the mass production of…

Q: 3- Sam, Ram, and Cam all like only Apples and Oranges. Sam's utility is of the form U = √A.O; Ram's…

A:

Q: Skyline Furniture has a beginning inventory of 3 dining tables at a cost of $1,400 each. During the…

A: First In, First Out (abbreviated as FIFO) refers to an asset-management and valuation approach…

Q: Consider a simultaneous-move integer game between two players: Marilyn and Noah. Each of the player…

A: A payoff refers to the result of a game that relies on the players' chosen strategy. Payoff is the…

Q: Dollar Bank is currently loaned up. If the required reserve ratio is lowered, Group of answer…

A: Dollar bank is currently loaned up. If the required reserve ratio is lowered then the required…

Q: 5. The Stag Hunt is a famous coordination game where two hunters must work together to hunt a stag…

A: Nash equilibrium is a game theory concept where each player chooses to maximize their outcome and…

Q: What factors determine whether a particular economic issue can be adequately analyzed by using a…

A: A difficulty with the economy's ability to produce products and services to meet the economy's…

Q: Suppose a nonlinear price discriminating monopolist faces an inverse demand curve: P = 110-Q, and…

A: Profit maximization in the context of economics refers to either the short-run or the long-run…

Q: Consider a competitive industry with a market demand curve of P = 252 – Q, where P is market price…

A: In this case, we have to know the term license. License is actually allowing or granting permission…

Q: On the diagram sample (a) show the effect of increase in money demand (money supply is fixed) on…

A: The analysis of the money market and the goods market, which together establish the equilibrium…

Q: From the following data relating to a form call Mark calculate net value added at FC. Subsidy = 40…

A: Net value added at factor cost refers to the sum total of all the factor payments. It also refers to…

Q: How does aggregate demand affect inflation?   How do interest rates affect aggregate demand?

A: The overall demand for goods and services made by all of the customers in the economy is referred to…

Q: First Commercial Bank Assets Liabilities + Net Worth Reserves $200,000 $1 million Deposits…

A: Balance sheet of a commercial bank The balance sheet of a commercial bank is statement which shows…

Q: o make extra money at school, Sofia starts a house painting business. Sofia’s start-up costs are…

A: Total Cost = Fixed Cost + Variable Cost Fixed Cost is independent of the output produced and you…

Q: 6. Prior to the battle for wages, the ritzy had two machines and four members of staff. Staff were…

A: Total cost is the sum of fixed and variable cost.  Fixed costs are the cost that are fixed and…

Q: A cooling tower costs P91,189 will have an estimated life of 9 years. Using double-declining balance…

A: Depreciation expense need not increase as a result of double rate depreciation. Instead, the asset…

Q: Which of the following instruments is NOT used by the Federal Reserve to change the money supply?…

A: Monetary policy is the use of monetary tools to change the money supply in an economy.  Fiscal…

Q: Suppose a farmer makes $R in revenue from crops each year if they do grow, but there is a…

A: When the payoffs are uncertain (which means there are some chances of losses). Then in order to…

Q: 14.) The Department of Public Works and Highways (DPWH) is considering the construction of a new…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: a) What is the monopolist's profit maximising output? b) What is the monopolist's total revenue? c)…

A: A monopolist firm produces at the intersection of MR and MC to maximize profit.  i.e., At MR = MC,…

Q: Why does the marginal revenue declines as a monopoly sell's more.

A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…

Q: Consider the following equations describing real money demand: M/P=Y(2-0.5i) So, if output (Y) in…

A: The combination of interest rate(i) and output(Y) at which money market is in equilibrium is shown…

Q: Which of the following is a factor influencing the reduction of Caribbean correspondent bank…

A: Banks global wide depends on correspondent banking to provide and access financial services to…

Q: What Factors Affect Aggregate Demand in our current economy?

A: Aggregate demand refers to the total demand for goods and services in the economy by all the…

Q: Suppose the supply and demand schedules for sandwiches are as follows: P=10 and Qd = 20-P. If a tax…

A: Price is determined by the market forces demand and supply interaction and market obtain equilibrium…

Q: Which of the following explains the relevance of financial institutions? a. Financial institutions…

A: Financial Institutions is a very broad term it includes banks, NBFCs, insurance companies, brokerage…

Q: How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10…

A: depositing 1092Php amount yearly for 10 years is the example of annuity or an ordinary annuity.

Q: Project managers typically deal with conflicting demands. Describe methods that project managers can…

A: Project management refers to the managerial decisions and functions carried out by the managers in…

Q: Given the following real money demand equation M = 2500 - 150r a. What is the equilibrium interest…

A: Given information: (M/P)d = 2500 - 150r ---------> Real money demand equation (M/P)s = 1200…

Q: how do some workers benefit from trade and others suffer?

A: Trade refers to the exchange of goods and services between different nations. When a nation is…

Q: Dena won $200 in the lottery. She deposits her $200 winnings into a money market fund so that she…

A: The money supply is the entire amount of money in circulation (cash, coins, and bank account…

Q: 3. The relationship between marginal and average costs The following scenario examines the…

A: The relationship between the marginal cost and average cost is the same as for any other…

Q: Monopolization of either the labor market or the output market results in A. A higher output price…

A: Monopolization means when only a company produces a particular type pf product in the market. There…

Q: need to know if i have the right idea my answers are in bold black letters , just need some…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Compute marginal utilities and marginal rate of substitution for each of the utility functions given…

A:

Q: Vhee Ayar lives alone in a computer lab where it spends 10 hours per day producing spurious orrside…

A:

Q: If the present worth of a project is given and you want to know its annual equivalent value, which…

A: Present worth is the value of investment in today's dollar.  Future worth is the value of investment…

Q: A firm with Perfect Competition in the Labour Market and Perfect Competition in the Output Market.…

A: The optimal level in economics is defined as the maximum consumption point where the wastage of…

Q: The Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10. A. Find the…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: QUESTION 8 The biological relationship between the growth for the fish population and the size of…

A: g = 15S(1-S/5) -> relationship between growth for fish population and size of fish population  b…

Q: Determine the exact simple interest on 10,620 for the period from Jan 6 to Nov 28, 1992, if the rate…

A: Given  Loan amount (P)=10,620 The interest period is between Jan 6 to Nov 28, 1992. Rate of interest…

Q: oral hazard caused by Deposit Insurance Schemes refers to: a. The placing of funds from immoral…

A: When one party tries to protect itself from risk by giving some fee to any other firm, individual,…

Q: 10. Suppose that currency in circulation is $700 billion, the amount of checkable deposits is $1000…

A: The supply of money in an economy is the sum of the currency held by the public and the amount…

Q: Five fishermen live in a village and have no other employment or income earning possibilities…

A: The socially optimal quantity is such where marginal social revenue equals marginal social cost.

Q: BE11-9 Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs…

A: Depletion refers to a non-cash expense that reduces the cost value for asset incrementally with a…

Q: Using the example of Table 6-2, assume that the average cost has umped from $100 to$105. All other…

A: An average cost refers to per unit production cost. It will be calculated by dividing the total cost…

Q: Question2 Imagine you work for a firm that only utilizes labor and capital as inputs and has a CES…

A: A neoclassical production function that exhibits continuous elasticity of the substitution is the…

Q: Use the following payoff matrix for a one-shot game to answer the accompanying questions.…

A: Player 2     Strategy X Y Player 1 A 30,30 16,-50 B -50,16 50,50

Q: Commercial banks create money through Group of answer choices facilitating borrowing from the…

A: Commercial banks accept the deposit of people and grants loans to people too.  Commercial banks have…

Q: We have one risk-free asset with a return r, = 0.06 (i.e., 6%) and one risky asset. There are three…

A: Given, Return of Risk-Free Asset (rf) = 6% Probability of State 1 (p1) = 0.25 Probability of State 2…