Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing ice cream is $3.30, average variable cost is $2.50, and marginal cost is $3.50. Over time, Stephanie's output of ice cream will everything else held constant. Select one: OA. decrease OB. remain unchanged OC. increase
Q: me something about labor export. Is it a good development policy
A: Relocation is the development of individuals starting with one country then onto the next to profit…
Q: Problem 51: With the table below showing the firm's outputs given the labor inputs: Labor 1 2 3 4 5…
A: "A profit-maximizing labor quantity occurs at a point where the value of the marginal product of…
Q: Assuming that the average duration of First National Bank's $100 million assets is five years, while…
A: Formula to be used: ∆NW = [ (-Da) * ∆i / 1+ i * assets vale ] - [ (-Dl) * ∆i / 1 + i * liability…
Q: Dali enjoys cool drink (c) and steak (s) for lunch. His monthly lunch budget is R600. His total…
A: "Consumers buy commodities and services in order to satisfy their demands. If the consumer is…
Q: One characteristic of all markets is that they are places of exchange focused on local products…
A: A market is a type of place wherever manufacturers, all types of distributors, or retailers sell,…
Q: Assume you are the Minister of Finance and Economic Planning for Ghana, in charge of Fiscal Policy.…
A: The fiscal stance of a government alludes to what its level of expenditure and tax collection means…
Q: (1/F) Since the beginning of 2022, the return on the stock market decreased and volatility…
A: Stocks are off to a bad start in 2022.
Q: 5-7. Consider a nation with a government that does not provide people with property rights for a…
A: 5-7) Property rights are required for efficient distribution of costs and benefits between various…
Q: consumer has set a budget of $600 for the consumption of good X and Y. The price of Good X is $20,…
A: Equilibrium condition: MUx/MUy = Px/Py
Q: Benson Manufacturing is considering ordering electronic components from three different suppliers.…
A: Given that Electronic component is ordered from three different suppliers. Sample shipment of 500…
Q: 5) The following statement about MC and AC is correct a) "When MC is falling , AC is…
A: The measure that depicts the graphs of the costs involved in process of production being a function…
Q: What is the future amount of P 5,000 if the single payment present worth factor is 0.253?
A: Given PV = 5000 and Present worth factor = 0.253
Q: Government economic planning has a historically better record of creating prosperity than the free…
A: Free market refers to the economic system in which the private sector dominates the economy. In this…
Q: tot de pas o parte de de las manos ay soddns que os 09-10 20 անգառս է St Jasurunok 34S ટa8ue aud…
A: Consumer surplus: It refers to the increase in benefits for the consumer. This can increase due to…
Q: If ten years ago the prices of the items bought last month by the average consumer would have been…
A: Here, it is given that the price of the items bought by a consumer in ten years ago was much lower…
Q: Q = AKBLa is a cobb doulas production function which is homogenous function of degree 4. Of what…
A: Production function refers to the functional relationship between the given input and the achieved…
Q: For each of the following scenarios, determine whether the decision maker is risk neutral, risk…
A:
Q: Use the following table to answer the question about taxes, where P Price buyers pay, P, Price…
A: According to the given table, buyer and seller has same price as $14 when there is no tax, while…
Q: "In South Africa, the tax on insulin is between 10 and 20 percent. If you are rich and living in…
A: Introduction this topic related to Insulin which is consumed by diabatic person's.
Q: The role of monopoly in America's Prescription Drug Crisis
A: A scenario is said to be monopoly when there is only one vendor in the market.The monopoly situation…
Q: How HubSpot company managed to increase customers and sale?
A: Knowing the sales volume can help you spot under performing goods and improve your sales process…
Q: You have been given the banking and financial data in the following table. Your boss wants you to…
A: Monetary base (MB)=Currency in circulation+Total reserve in the banking…
Q: Desired Aggregate Expenditure Yo Y₂ G Yo V₂ FIGURE 23-1 Refer to Figure 23-1. Assume the economy is…
A: Equilibrium in the Keynesian cross model occurs at the intersection of 45 degree line and aggregate…
Q: What are Nash Equilibria in the following game? Select all that apply. Pizza Jazz 7 meats Seafood…
A: We have 3×3 simultaneous move game between two players.
Q: Question 1 Calculate the marginal rate of substitution (MRS12) for the following utility function:…
A: Answer: Given, Utility function:Uq1,q2=74q1+0.6q22 To find the MRS let us find the marginal…
Q: 0.00 % cimal places terest rate compounded monthly that is equivalent to 4% compou 0.00 % cimal…
A: The expression "equivalent rates" conveys with it a similar idea as "effective rates" yet considers…
Q: Give reasons why the economically developed countries have a high value for the ranking but…
A: Economic Development is the growth of the standard of living of a nation's people from a low-income…
Q: look at the t-statistics for the relevant coefficients. analyze the standard error of estimated…
A: Polynomial regression is a type of Linear regression where simply because of the Non-straight…
Q: Which of the following external sources of increasing capital stock has maximum political…
A: When talking about openness of a country, it will be beneficial for both the country as it improves…
Q: how can Liquid waste be an important aspect of waste management in any society
A: In metropolitan regions, waste management is becoming a rising economic, social, and political…
Q: Juan is 25 years old today. A year from now (i.e., on his 26th birthday) he will deposit $7,000 in a…
A: Compound interest is calculated by multiplying the initial principal amount by one plus the annual…
Q: If the marginal-revenue function for a manufacturer's product is dr = 2000-20g-3q² dq find the…
A: The total revenue is calculated by integrating the marginal revenue. The total revenue is divided by…
Q: What is the exponential growth rate change of an investment that has a b=1.24? Use the paperclip…
A: Exponential Growth The word "exponential growth" refers to a data pattern that shows rising rates…
Q: P3
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: Use the following table to answer the question about taxes, where P = Price buyers pay, P, Price…
A: Here, the given graph shows the price for buyers and sellers at the market quantity, with and…
Q: The following table depicts the cost and revenue structure of a profit-maximizing firm. FC Q VC AVC…
A:
Q: list and describe various economic and societal factors that affect demand and pricing for health…
A: People must look for a service they can afford and are prepared to pay for in order to satisfy…
Q: Explain Keynesian policy for fighting unemployment and inflation.
A: Keynesian economics explains how total expenditure affects production, employment, and inflation.…
Q: When a firm produces 600 widgets with total cost of $1,300 and fixed cost of $800, what is the…
A: The variable cost per unit is the average variable cost.To calculate the average variable cost,…
Q: alculator Scratch Pad Pillar Co makes decorative candles which are made from a special organic blend…
A: Given information Table Demand function shows the relation between demand and price of the product.…
Q: Draw a cash flow diagram for easy understanding. a. The SK debt as of today amounts to 12 trillion.…
A: Given, As of today, the PH debt totals 12000000000000. The Philippines has a population of 110…
Q: Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she…
A: Here, it is given that Bong-Cha makes her decision on how to spend her 30 mins break. Also, she has…
Q: Which of the following production function exhibits Diseconomies of Scale? Production function where…
A: If an increase in inputs by λ led to an increase in output by more than λ, the production function…
Q: The following equation describes the median housing price in a community in terms of amount of…
A: Upward bias is the optimistic approach and downward bias shows pessimistic approach. Estimator is…
Q: Using the aggregate money demand theoretical framework, discuss 3 factors that determine Australia’s…
A: Money is a valuable asset that is widely used and accepted as a form of payment. Money can refer to…
Q: Write a short description about Jeff Bezos and about his achievements.
A: Jeffrey P. Bezos was born in the New Mexico city of Albuquerque.His mother was still in her teens…
Q: Subject: Manegerial economics & policy Mcq's 14) A petroleum industry is an example of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Pre Pillar Co makes decorative candles which are made from a special organic blend of beeswax,…
A: Given information Table Demand function shows the relation between demand and price of the product.…
Q: 9- If you have the following information: EPO(q1+q0)9000-9 EP1(q1+q0)=45000 And, the of the index…
A: Given Information: ∑P0q1+q0 = 9000∑P1q1+q0 = 45000
Q: Abigail, Bernard, Cornwallis, and Douglas each derive a distinct amount of utility from consuming…
A: Utility theory is a positive theory. that looks to make sense of the people's noticed way of…
Step by step
Solved in 2 steps
- Suppose, at a given point in time, Lynn's Licorice Loft sells licorice in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production Lynn's average total cost of producing licorice is $1.20, her average variable cost is $1.00, and her marginal cost is $1.30. Over time, the number of licorice sellers in the market will....Sleek Sneakers Co. is one of many firms in the marketfor shoes.a. Assume that Sleek is currently earning short-runeconomic profit. On a correctly labeled diagram,show Sleek’s profit-maximizing output and price,as well as the area representing profit.b. What happens to Sleek’s price, output, and profitin the long run? Explain this change in words, andshow it on a new diagram.c. Suppose that over time consumers become morefocused on stylistic differences among shoe brands.How would this change in attitudes affect eachfirm’s price elasticity of demand? In the long run,how will this change in demand affect Sleek’s price,output, and profit?d. At the profit-maximizing price you identified inpart (c), is Sleek’s demand curve elastic or inelastic?ExplainShow that for a proit-maximizing firm producing at its optimal quantity, y, its average total costis minimized when marginal cost is equal to average total cost. Some tips to get you started:
- Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing…Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $ 60.00 $ 45.00 $ 105.00 $ 45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 a. At a product price of $56.00 (i) Will this firm produce in the short run? yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? profit- maximizing output = 9 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the…The accompanying table shows a car manufacturer’s total cost of producing cars.a) What is thismanufacturer’s fixed cost?b) For each level of output, calculate the variable cost (VC). For each level of outputexcept zero output, calculate the average variable cost (AVC), average total cost(ATC), and average fixed cost (AFC). What is the minimum-cost output?c) For each level of output, calculate this manufacturer’s marginal cost (MC).d) On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.2. Labor costs represent a large percentage of total costs for many firms. According to data fromthe Bureau of Labor Statistics, U.S. labor costs were up 2.0% in 2019, compared to 2018.a) When labor costs increase, what happens to average total cost and marginal cost?Consider a case in which labor costs are only variable costs and a case in which theyare both variable and fixed costs.An increase in labor productivity means each worker can produce more output. Recent data onproductivity show…
- The accompanying table presents the expected cost and revenuedata for the Tucker Tomato Farm. The Tuckers produce tomatoesin a greenhouse and sell them wholesale in a price-taker market.a. Fill in the firm’s marginal cost, average variable cost,average total cost, and profit schedules.b. If the Tuckers are profit maximizers, how many tomatoesshould they produce when the market price is $500 perton? Indicate their profits.c. Indicate the firm’s output level and maximum profit if themarket price of tomatoes increases to $550 per ton.d. How many units would the Tucker Tomato Farm produce ifthe price of tomatoes fell to $450 per ton? What would bethe firm’s profits? Should the firm stay in business? Explain.For the Statement at the end, there are drop down arrows and options for you to choose from, and values to fill in. Drop down options will be listen in brackets, and blanks are values that must be found. Simone's profit is maximized when she produces _______shirts. When she does this, the marginal cost of the last shirt she produces is $_______ , which is (greater/less) than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is ________, which is (greater/less) than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the (marginal cost and marginal revenue/ total cost and profit/ total cost and total revenue/ marginal cost and total revenue/ total revenue and profit/ total cost and marginal revenue) curves. Because Simone is a price taker, this last condition can also be…Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Muffaletta Sold per Day Price (P) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC) Profit 0 $15 $12 1 14 18 2 13 20 3 12 21 4 11 23 5 10 26 6 9 30 7 8 35 8 7 42 9 6 52 10 5 78 Fill in the table What are the profit-maximizing price and quantity, and what…
- The market for fertilizer is perfectly competitive.Firms in the market are producing output but arecurrently incurring economic losses.a. How does the price of fertilizer compare to theaverage total cost, the average variable cost, andthe marginal cost of producing fertilizer?b. Draw two graphs, side by side, illustrating thepresent situation for the typical firm and for themarket.c. Assuming there is no change in either demand orthe firms’ cost curves, explain what will happenin the long run to the price of fertilizer, marginalcost, average total cost, the quantity supplied byeach firm, and the total quantity supplied to themarket.Assume a number of street vendors sell hamburgers in a city. Each vendor has a marginal cost of 30 NOK per hamburger sold and there are no fixed costs. The maximum number of hamburgers that any vendor can sell is 100 per day. a) If the market is perfectly competitive and the price of each hamburger is 40 NOK. How many hamburgers does each street vendor want to sell and what is each vendor’s profit per day assuming the desired quantity is sold?b) Why is this solution not a long run equilibrium?c) Suppose all the vendors merges and thus appears as a monopolist in the market. After merging marginal cost is constant. Make a diagram and explain the optimal solution for the monopolist.d) How can you explain that the solution from c) is such that the profit is maximized?e) Explain the social costs of the monopoly situation in this market. f) Suppose many consumers in this hamburger market became “addicted”. How would you explain this change in consumers demand and how would it affect social…Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the marginal and average total costs of producing candy canes by $0.05. Based on the information given, we can conclude that in the short run a typical producer of candy canes will be making:Choose one answer.a. an economic profit.b. zero economic profit.c. negative economic profits.d. It is impossible to determine based on the information given.