Suppose a monopolistically competitive firm has a marginal cost of $2 and a marginal revenue of $8.  The price of the product exceeds ATC.  The monopolistically competitive firm should _____ its output and ______its price.    Question 8 options:   a)  decrease; increase    b)  increase; increase   c)  increase; lower   d)  decrease; decrease

Q: In this question we will combine a very simplified model of an externality that has long-lasting…

A: An externality is a type of cost/benefit that is borne by the individuals who are not directly…

Q: Bargaining Questions 1. Discuss the Nash bargaining solution. 2. Provide a solution to he…

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

Q: Draw a graph that models a positive externality in consumption (label and clearly explain graph)…

A: An externality in consumption illustrates the situation of a market failure. Market failure refers…

Q: . How much is the savings of the people of the country if the national income is 400. e. Make a…

A: When the Y = 0       C = 60 S = Y - C  This is the autonomous amount of consumption and at this…

Q: 26.A man borrowed P20,000 and promised to pay an amount of P21,500 with simple interest of 20%. How…

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

Q: At an output of 1,000 units, a monopoly firm’s average revenue is $40, its marginal revenue is $30,…

A: A monopoly firm maximizes its profit when marginal revenue is equal to the marginal cost.  The…

Q: From the following information:                                          Calculate Consumer Price…

A: The consumer price index could be measured through the following formula: CPIt=Cost of Market…

Q: a. Complete the table below, which shows the costs and revenues of Solo the monopolist. (You may…

A: A firm maximizes profit at the point where MR = MC.  Profit is total revenue minus total cost.

Q: 3. Kalle has already saved 18 000 euros in his investment account. Suppose he needs to have 32 000…

A:

Q: Mr. Constantine wishes to mark out a rectangular flower bed using a wall of his house as one side of…

A: It is given that a wall of Mr. Constantine's home will serve as one side of a rectangle he wants to…

Q: The Kelowna Go-Kart Klub wants to switch to all-electric Go-Karts powered by solar panels. The cost…

A: Equal payment series sinking fund factor: A/F,i,n=i1+in-1 Given  Future value F =$60,000 Annual cash…

Q: Supply, Demand and Equilibrium Price Usually, the supply equation is modeled by a linear equation.…

A:

Q: What is economic diversity among investment?

A: Investment is a key component of aggregate demand (AD). Investment spending is undertaken by…

Q: c. Suppose that the demand for Molly's product increased by three units at every price level.…

A: A profit-maximizing firm uses its input efficiently to produce optimal output. The optimal output is…

Q: Explain the two most important functions that compensation contracts should be able to handle and…

A: The term "compensation and benefits" describes the wage or other remuneration that a company pays…

Q: You are given the following information about a model economy. The autonomous part of consumption is…

A: Autonomous spending is the sum of the components of aggregate expenditure which does not depend on…

Q: The local newspaper has asked you (as a top economics student) to provide an industry analysis of…

A: Total revenue is the product of price and quantity.  Profit is the difference between total revenue…

Q: Suppose the economy is initially in equilibrium as depicted on the graph to the right. Note: 'E' =…

A: The different combinations of Y(output ) and E (exchange rate) at which  asset market is in…

Q: Trade Protectionist tools include all of the following except: Select one: a. Open Borders for…

A: Trade restrictions are any kind of barriers put in place to prevent the import and export of…

Q: In the UK, Value Added Tax (VAT) rose to 20% in January 2011. Examine the impact of this increase on…

A: Value Added Tax refers to the tax rate which is levied at each stage of production of a good or…

Q: A risk-averse manager is considering a project that will cost £100. There is a 10 percent chance the…

A: The expected value is described as the difference between expected profits and expected costs.…

Q: Veritas Inc. has decided to acquire a new Hydraulic Excavator. It has three options. Caterpillar:…

A: The benefit-cost ratio (BCR) is a measure showing the connection between the relative costs and…

Q: An emissions tax equal to _______ induces polluters to internalize the externality and leads to the…

A: Equilibrium is where the demand curve equals the supply curve(Private cost curve)  Socially optimal…

Q: I am in possession of two coins. One is fair so that it lands heads (H) and tails (T) with equal…

A: As the coin is fair the probability of the head and tail coming is half each. However, the weighted…

Q: If you were to make an analogy between the national accounts and the income statement of a…

A: GDP refers to the money value of all final goods and services that are produced within the…

Q: 2. Consider the following game: 1 u 6,0 0,6 d 3,2 6,0 Are there any Nash equilibria in pure…

A: The best strategy in a non-cooperative game is determined by a firm with the help of NE(Nash…

Q: . P300,000 was deposited at a rate of interest of 6% compounded monthly. After how many years will…

A: The interest that is earned on an initial investment in addition to the interest that has already…

Q: Why does consumer surplus decline when monopolies are presen

A: Introduction :   Monopolist will produce the profit maximizing quantity.  And profit maximizing…

Q: a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. and revenues 210 180…

A: A profit-maximizing firm produces at the intersection of MR and MC to maximize profit.  Total…

Q: NAME Megan Schuyler (2) Due 12/3/2022 Show work for credit! The demand for product Q is given by…

A: TR(Total revenue )is the amount that the seller earns by selling their product.TC(Total cost )is the…

Q: Consider a market in which three firms compete as quantity setters (i.e. firms are engaged in…

A: Total revenue is the product of price and quantity. So , TR = P × Q  Marginal revenue is the revenue…

Q: AC: g 4. Suppose a firm has the cost function TC(q) = 5Q³ w0.5 p0.5 What is the marginal and average…

A: Average Cost is the per unit cost of the good produce. It tells us how much each good is costing.…

Q: Consider a buyer and seller of a used car. The quality of the car (denoted as s) is known to the…

A: Given,  There are a buyer and Seller of a used carThe quality of the car (given by s) is known to…

Q: 4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a…

A: In perfect competition ,  A firm will always produce where Price is equal to marginal cost.  This…

Q: Assume the price of a t-shirt in 2000 dollars was $6. If CPI in 2000 was 100 and in 2020 was 200,…

A: CPI or Consumer Price Index measures the total cost of goods and services bought by a typical urban…

Q: 1. Marie is making 75 euros in beginning-of-month payments into an investment account. If the…

A: The formula to calculate the future value of the annuity due is: Annuity dueFuture Value = P(1+i)n -…

Q: An increase in the supply of monopolisitcally competitive firms is best represented as    Question…

A: In a monopolistically competitive market ,  Firms produce where MR = MC  MR is the marginal revenue…

Q: Price of a chocolate bar (cents) 50 40 30 20 10 5 Quantity demanded per month 100,000 150,000…

A: The demand and supply diagram according to the quantities demanded and supplied per month given in…

Q: Suppose the economy is hit by a favorable aggregate demand shock. In response to this shock, the…

A: The demand curve graphically represents the demand schedule.

Q: Suppose that the price of health care services rises and the quantity demanded falls. Under what…

A: GDP refers to the total amount of goods and services that are produced or made during a current year…

Q: Suppose that the production function for an economy is given by Y = K1/4L3/4.  The depreciation rate…

A: Solow growth model is used to analyze the changes in the output level over time as a result of…

Q: in relation to measuring the performance of organizational units, please explain the 5 center types…

A: When compared to the expected outputs, an organization's actual output or outcomes are considered to…

Q: find the Banzhaf Power Indices of that 4-player system: [10:8,7,4,2] A new republic with a…

A: Introduction The Banzhaf power index represents the likelihood that one state will affect the…

Q: Given the total cost function TC = 0.5q³ - 10q² + 80q • Find the average cost AC and the marginal…

A: The functional relationship that is between cost and output is referred to as the "cost function."…

Q: Two companies, Wonka and Gekko, each decide whether to produce a good quality product or a poor…

A: Nash equilibrium is a state or set of strategies in which each of the players is doing their…

Q: conomics deals with the efficient use of resources. Why

A: Introduction : Economics majors have a better understanding of the world around them. People can…

Q: 1 Using an appropriate demand and supply diagram, explain the impact on the market price and…

A: The Samsung digital cameras if followed with new technologies will lead to an increase in the supply…

Q: Suppose a consumer’s preferences for goods Y and X can be represented by the utility function,…

A: It is said that a consumer maximizes utility at that point where the slope of its indifference curve…

Q: Drugs that treat a small portion of the population are called

A: A drug used to treat, prevent, or diagnose an orphan disease is called orphan drug.

Q: Assume perfect competition: Price: $48 Cost: TC = 5Q + 0.02Q² Solve for the profit-maximizing…

A: For a perfectly competitive corporation to maximise profits, the marginal cost and marginal income…