Suppose hibiscus tea becomes super-trendy and so demand for hibiscus plants doubles (i.e. twice as many plants are demanded at any given price). How many (new) firms enter the market
Q: Now you have another idea – to sell only packages of 20 cupcakes. What is your profit-maximing price…
A: In the graph we can observe that there is constant Marginal Cost of $1/cupcake. We know the Marginal…
Q: The Mumbai Times reported that the metro ridership declined after a fare increase: There were…
A: Price declines by 4.3% Ticket increased by Rs. 1 to Rs. 5.50 Thus, there is % change in demand =…
Q: ABC Co, a store that sells various types of sports clothing and other sports items, is planning to…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: In advertising, a business is not only making consumers aware of the existence of the product and…
A: Income elasticity is a parameter that measures how the demand for a service fluctuates to a change…
Q: At a price of $4 per unit, Gadgets Incorporated is willing to supply 20,000 gadgets, while United…
A: The elasticity of supply measures the quantity supplied of goods responsiveness relative to the…
Q: Nathan and Joe are shopping for video games. The demand function of George for Track and field…
A: Demand function shows the functional relationship between price of goods and quantity . And between…
Q: You are a manager of an advertising company. The company is running short of funds, so you decide to…
A: It's tough to say whether cutting costs or growing income is more vital for all businesses. There…
Q: If a company successfully advertises its product, do we expect the price elasticity of demand for…
A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…
Q: The Ford F-150 (best selling vehicle in the U.S. for the last three decades) is currently priced at…
A: Here, it is given that the United States has the Ford F-150 as the best-selling vehicle for the 3…
Q: Solve for the goodsmarket equilibrium.
A: The aggregate supply (AS) of goods in the economy is determined by the production function's…
Q: According to the graph, if price increases from $10 to $15, total revenue will
A:
Q: In 1896, Colgate dental cream was introduced in tubes similar to those we use now. Today, the…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: Why do suppliers want to create more inelastic demand relationships in the products that they sell?
A: The markets are the place where the buyers and sellers of goods, services, investments, assets, and…
Q: Now, the customers of Nokia phones are starting to like their product even more. As a result, the…
A: Price of a commodity is an important element that helps in changing the demand of the product.
Q: supply and inverse demand functions: espectively. Find P* and Q*
A: Demand generated by all the consumers/ individuals at given price during a duration depicts demand.…
Q: Assume the market is Netflix. Which of the following would cause the demand curve for Netflix to…
A: Because substitute price will decrease,demand for netflix will decrease,causing demand curve to…
Q: If A New Breakthrough in Manufacturing technology reduces the cost of producing Blu-ray Players By…
A: Technology: It refers to the new innovations which have been used by the economy. The technology…
Q: for smart phones. Points P Q A 6060 3,0003,000 B 7070 2,8002,800 C 8080 2,6002,600 D 9090…
A: Elasticity of demand depicts how much consumer responds with the change in the price level.
Q: Using a product (good or service) of your choice, provide an example of a situation where the demand…
A: Answer to the question is as follows:
Q: Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since…
A: A payoff matrix is a way to show the output of players' choices in a game. A payoff matrix does not…
Q: Regulators in the European Union have charged Microsoft with illegally tying Internet Explorer (IE)…
A: The role of business strategies in economics is such that it helps to understand the importance of…
Q: Discuss the scenarios below. Please treat each scenario separately. (i) You are the manager of a…
A: If the management wants to offer menu items with a large profit margin, he or she should do so. The…
Q: After moving into Schine, Dunkin’ reported that their (donut) market equilibrium occurs when 450…
A: Demand is an economic principle that refers to a consumer's desire to buy goods and services as well…
Q: A survey indicated that chocolate is the most popular flavor of ice cream in America. For each of…
A: 1. Supply decreases; price increases; quantity decreases Severe drought in Middle west causing…
Q: Has Cath Kidston executed value-based pricing, cost-based pricing or competition-based pricing?…
A: Cath Kidston Ltd is a UK-based company which understands that sometimes it tends to pay in order to…
Q: Current tuition at Benedict College is around $24, 000 a year. Show what would likely happen to…
A: Law of demand states that price and quantity demanded have inverse relation. Law of supply states…
Q: More fast food restaurants will enter the market, and Manuela's demand curve will become more…
A:
Q: When notebooks and pencils are considered complements, then economists would argue that when the…
A: When two goods are complementary goods, they are consumed together by the people.
Q: Consider this simple market for almonds. Almonds require a lot of water to produce them. A large…
A: Market equilibrium is that condition where market Demand is equal to market supply.
Q: Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the…
A: We are going to perform equilibrium analysis to answer this question
Q: You were promoted as the manager of a new Clean-Well Sanitary Store that sell cleaning and…
A: Considering that the vitamins are normal goods. For normal goods, a change in price would result in…
Q: U.S. food markets consumers viewed beef as a normal good from 1960-1976, but viewed it as an…
A: Marginal cost refers to the change in the total cost after making production of additional unit.…
Q: company intentionally limit supply when consumers want more of a product?
A: A company intentionally limit supply when consumers want more of a product in order to get higher…
Q: Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold…
A: The optimal price is the one at which a seller will profit the most. To put it another way, the…
Q: Suppose you are given the following data on demand for a product. The price elasticity of demand…
A: The price elasticity of demand is an economic indicator of the rise within the amount of artefact…
Q: Suppose a firm sells two goods, Good A and Good B. Use the following information to Calculate the…
A: Profit maximizing price of Good A = $6000 MC at profit-maximizing level of output of Good A = $1200…
Q: How can the owner of The Burger Barn determine if a one-day promotional sale on milkshakes will…
A: We know that there are two types of related goods . One of them is complimentary goods which are…
Q: After analyzing the demand for his products, Ahmed realized that the demand for his products is…
A: Price elasticity of demand measures the percentage change in quantity demanded of a good due to a…
Q: he marginal cost pricing model calculates a markup over marginal costs using estimates of the price…
A: The marginal cost pricing model is not always effective in earning maximum profit. However, we can…
Q: Consider the following demand function: U(X,Y) = X5Y5 Find the solution of the maximization problem.
A: The demand function shows the inverse relationship between two variables or components that are…
Q: Sly Bailey, the Trinity Mirror Chief Executive, sought to boost revenues of the Daily Mirror in 2004…
A: Price elasticity of demand of a product helps to find the responsiveness of change in consumption…
Q: Make up an example of a monthly demand schedule for pizza and graph the implied &mand curve. Give an…
A: Demand(dd) is a downward-sloping curve which implies that as price(p) rises, quantity demanded(QD)…
Q: For each of the following situations, state whether total revenue received by the seller increases,…
A: a)Increases b)Decreases
Q: Part A- You are a manager of an advertising company. The company is running short of funds, so you…
A: The process of combining multiple material and immaterial inputs (plans, know-how) to generate a…
Q: What kind of market structure is described in the above paragraphs? Describe the key characteristics…
A: In this situation, the company Colgate-Palmolive Company’s brand of toothpaste is the best-selling…
Q: Does a surplus or a shortage arise at the original price when more firms produce smartphones ? A…
A: Demand refers to the quantity that a consumer wishes to buy at a particular price in a given period…
Suppose hibiscus tea becomes super-trendy and so demand for hibiscus plants doubles (i.e. twice as many plants are demanded at any given price). How many (new) firms enter the market?
Step by step
Solved in 3 steps with 3 images
- Suppose that a firm’s fixed costs is $80, and variable costs per unit are $(2Q + 16). The demand function for its product is given as:2Q + P = 54Determine its break-even point (Hint; At Break-even, revenue equal cost)QUESTION 19 Suppose a firm's inverse demand curve is given by P = 340 - 0.80 and its cost function is C = 120 + 100Q, then the production (Q) that maximizes profit is equal to: Or Q = 150 Or Q=250 EITHER Q=100 Q=200q 53 Suppose jumbo packs of notepads are sold in a perfectly competitive market for 60. To produce jumbo packs of notepads, an individual firm has a cost function of C = 2 + Q2. What is the firm’s profit? a. 798 b 698 c 898 d 998
- A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q + 0.25Q2. Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum? Note: MC = 1 + 0.5QThe market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 At profit maximizing level what is firm total cost, total revenue and marginal costSuppose that the manager of a firm operating in a competitive market has estimated the firm’s average variable cost function to be AVC = 10 – 0.03Q + 0.00005Q2, TFC = 60. What is the MC function? What is the output where AVC is minimum? What is the optimum profit?
- Suppose that each firm in a competitive pizza market has the following identical cost: Total cost: TC=25+1.5Q2 The market demand function for the pizza market in the above question 2(a) is: Q= 120-P, where P is the price and Q is the total quantity of the pizza. Currently, there are 12 firms in the market. i. Formulate the equation or level of fixed cost, variable cost, marginal cost, average variable cost (AVC) and average total cost (ATC) for each firm. ii. Formulate each firm’s supply function based on the cost information prior to innovation and determine the market supply function in the short run. The total number of firms in the market is assumed to be fixed. iii. Calculate the price and quantity of pizza in the market and the quantity produced by each firm while the market is at the short-run equilibrium. Use a diagram to illustrate this short-run equilibrium and calculate each firm’s profit or loss. Discuss whether each firm has an incentive to leave or stay in the market.…A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.a). Is the efficient scale of the firm more than, less than, or exactly 100 units?Q 1. (B) A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 + Q + 0.25Q2 Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum?
- Suppose that the firm operates in a perfectly competitive market. The market price of his product is$10. The firm estimates its cost of production with the following cost function: TC=10q-4q2+q3 A. What level of out put should the firm produce to maximize its profit? B. Determine the level of profit at equilibrium. C. What minimum price is required by the firm to stay in the market?A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitA firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profit