Suppose that in the short run the firms in a monopolistically competitive industry are making an economic profit.   what is likely to happen in this market over the long run? Will the firms be able to sustain this economic profit over the long run? Describe the adjustment process in this market towards the long run equilibrium in detail.

Q: LATHE A 40,000 5,000 2,000 LATHE B 56,000 7,000 2,800 3.5 12 0.25 First Cost Salvage Value Annual…

A: Annual worth method is referred to as the equivalent uniform annual worth calculated for all the…

Q: Three firms share a market. The demand function is P(q1, 42, 93) = 10 – q1 - 2 – 3, where q; is the…

A: Profit function of each firm will be Profiti = TRi - TCi where TRi =(10-q1-q2-q3)qi

Q: Country A's payoff If majority invest If majority does not invest Country A does not invest Country…

A: Given: Country A's payoff Country A invest Country A does not invest If majority invest 1 2…

Q: MC ATC G. AVC D MR Quantity he profit-maximizing firm illustrated in Figure 10-1 operates in a…

A: A monopolistically competitive firm produces at the intersection point of MR and MC in the short…

Q: Other things equal, as the marginal productivity of labor rises: Group of answer choices real wages…

A: The marginal productivity of labor measures the change in the total product due to using an…

Q: 3. Using the Aggregate Demand / Aggregate Supply framework, determine both i) the short run effect…

A: Aggregate Demand refers to the total demand of all the consumers of all types of goods and services…

Q: Lori is a student who teaches golf on the weekend and in a year earns $40,000 after paying her…

A: The market value represents the value of a company according to the stock market. It is the price an…

Q: Question 6.1 You have purchased a machine costing $20,000. The machine will be used for 2 years, and…

A: To justify launching a capital project, such as building a new factory, a corporation must determine…

Q: The market for plasticans is perfectly competitive. Market Supply is given by Q=5P and Market Demand…

A: Supply function Q=5P P = Q/5 MPC = Q/5 , where MPC = Marginal private costs Market Demand is given…

Q: --------  depends only on the utility levels of the households. fill in the blank

A: The consumption function shows the positive relationship between the income and consumption of goods…

Q: The U.S. government's debt is currently about $20 trillion, which is 105% of GDP. How much debt is…

A: US government debt = $20 trillion And it's currently 105% of the GDP level

Q: In 2016, the largest portion of federal employees were in which of the following sectors? Multiple…

A: The federal government jobs accounted for a significant portion of the employment sector in the US.

Q: Select and examine any two economic systems that you think affect businesses most in South Africa.…

A: Select and examine any two economic systems that you think affect businesses most in South Africa.…

Q: Which of the following would cause a shift in the short run aggregate supply curve? A decrease in…

A: PLEASE FIND THE ANSWER BELOW.

Q: Andria Mullins, financial manager of Webster Electronics, has been asked by the firm's CEO, Fred…

A: Carrying cost of inventory alludes to the complete cost of holding inventory.

Q: When economists look for some explanation for government provision, we want to find some kind of…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: 3. In the Solow growth model, suppose that the marginal product of capital increases for each…

A: PLEASE FIND THE ANSWER BELOW.

Q: Economic costs of an input include both implicit and explicit costs. only explicit costs. only…

A: The expenses that are being incurred for carrying out transactions of a business are known as costs.…

Q: A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost…

A: Cost is the expenditure that is incurred in the production of goods and services. It is the…

Q: urope, Southern Europe and the United Kingdom. Each region had three technologies to abate. The…

A:

Q: How is the performance of Philippine economy in the year 2020 in terms of rate of unemployment?

A: The Philippines economy during 2020 went into recession and the unemployment rate worsened to double…

Q: Discuss the Material Balance Model of the Economy and environment. Explain it in your words (do not…

A: This concept is from the environmental economics.  This model is given by Ayres and Kneese and is…

Q: A manufacturing company is considering a capacity expansion investment at the cost of $32,850 with…

A: Investment cost = $32,840 Output produced = 30,000 parts per year.  Profit generated by each part =…

Q: Consider the following two scenarios. Scenario 1 - Uninterrupted Growth Per capita GDP starts at…

A:

Q: XYZ Corp. produces 1,000 units of output (along the same isoquant) using various combinations of…

A: The elasticity of input substitution tells about the substitutability of inputs when the marginal…

Q: 4. Suppose that the depreciation rate increases. In the Solow growth model, determine the effects of…

A: The depreciation rate affects the quantity of capital and output per worker in the steady-state in…

Q: What are various economic, social, and political changes that occurred in the 19th century

A: Europe's political and economic changes were finally affecting Spain, and thus the Philippines. The…

Q: The distribution of income has become more unequal in developed countries because?    Select one:…

A: The distribution of income has become more unequal in developed countries because trade has reduced…

Q: please answer in type( not hand written) Explain the income approach to computing GDP in a…

A: The Sum of all the goods and services produced in an economy in an accounting year is GDP (Gross…

Q: Total Total Total Average Average Average Total Man Product Fixed Variable Fixed Variable Total Cost…

A: Total cost is the sum of fixed cost and variable cost. Marginal cost refers to change in total…

Q: An investment earns 3% compounded monthly. Find the value of an initial investment of Php 5,000…

A: The capacity of an asset to create returns that are then reinvested or stay invested with the…

Q: Why could a current account deficit stimulate an economy? List at least two reasons and explain with…

A: Current account deficit The current account deficit is a situation in the economy of a country…

Q: Along any given IS curve: a. government spending is fixed, but tax rates vary. b. tax rates are…

A: IS-LM stands for "investment savings-liquidity preference-money supply," or "investment…

Q: 3 p) The folowing three ally exclusive altematives have a 9-year life and no ally exchu alternatives…

A: Given:

Q: Suppose a specific labour market is considered to be a monopsony. Who holds the market power and can…

A: Monopsony means one buyer. Mono means one and sony means buyer.  So the individual demand curve is…

Q: Suppose that banks are required to hold reserves equal to at least 4 per cent of their deposits and…

A: Money multiplier is a term in monetary economics that is a phenomenon of creating money in the…

Q: Consider Population model Y = Bo + B1X1 + B2X2 + B3X3 + µ. Now consider the following statements a…

A: Given,  The Model :Y=β0+β1X1+β2X2+β3X3+μAssumption : MLR 1-4 is satisfied

Q: Use the table to compute for the following: Point A C F Px($) 6. 5 4 2 1 Qx 20,000 40,000 60,000…

A: Dear learner you have posted multiple sub parts question, as per our policy we have solved only…

Q: For the nonconventional net cash flow series shown, the xternal rate of netun per year usg the Mst…

A: An unconventional cash flow is a progression of internal and outward cash flows after some time…

Q: 5) Suppose we have the production functions: q = KL a.) Set up the appropriate Lagrangian and derive…

A: A function can be thought of as a model which involves an input, after processing which an output is…

Q: For a competitive market in long-run equlibrium to be Pareto-efficient... Select one: a. Firms do…

A: Pareto efficiency in the long-run equilibrium for a competitive market depends on different factors.

Q: 4. Here is the expression for money market equilibrium that we discussed in class: M = P. L(Y,r +…

A: Money Market Equilibrium : Money Supply = Money Demand  M/P = L(Y , r + pie ) Growth rate expression…

Q: If society values a more equal distribution of goods which is embodied in Social Indifference…

A: When talking about social indifference curve, it is the curve that represents the combination of…

Q: Are America’s elderly a minority group?

A: The elderly's economic situation in the United States has improved dramatically in recent years as a…

Q: Average labour productivity is equal to A. the slope of the production function at the point (Y N)…

A: Average labor productivity measures the output produced per unit of labor.  It is calculated by…

Q: Perfectly competitive firms earn zero economic profit in the long run. True False

A: In perfectly competitive market, price is constant so it is equal to marginal revenue. Profit is…

Q: Economics deals with the question as to “how to acquire more and more wealth by a nation,” and “how…

A: The country of Oman is a sovereign and monarch country. In which all the powers whether it is legal,…

Q: he demand curve and supply curve for a No-year discount bond with a face value f $2,420 are…

A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…

Q: Suppose that flu shots create a positive externality equal to $10 per shot. Further suppose that the…

A: Externality refers to spill-over effect of a good on third party which is not involved in either…

Q: how do i show this answer in two seperate graphs? Or is the one graph showing both parts of the…

A: The situation can be represented through one graph only.