Suppose that your friend operates a pizza restaurant in the building he owns. Similar buildings in the neighborhood rent for $4,000 per month. He is considering selling the building and renting space in the suburbs for $3,000 a month, but he decides not take the move. He reasons: “ I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, I do not want to see my costs rise by $3,000 per month”. What do you think about his reasoning? Is his reasoning correct?

Q: to the exchange rate at $180x100, the Federal Reserve could se contractionary monetary Dory to shift…

A: To devalue currency government usually buys foreign reserves to increase the supply of their…

Q: Quebec losing hold over maple syrup industry to U.S. competition The Federation of Quebec Maple…

A: Market structure is significant because it affects direction of the economy through influencing…

Q: When the public debt is held by foreigners, it is not a real burden on real domestic output.…

A: Public debt is the total amount of money owed by a government to its creditors. It is the…

Q: Imagine a signaling model where there are two types of workers, low-productivity workers with a…

A: Introduction:- The term "equilibrium" refers to a scenario in which market supply and demand are…

Q: Suppose that in a small town, the market for cement had five companies with market shares 0.3, 0.2,…

A: Herfindahl–Hirschman index or HHI index measures the market concentration by summing the square of…

Q: 4. A perpetuity has end of month payments. The January payments are 1, the February payments are 2,…

A: A perpetuity is a specific kind of financial instrument or investment that offers a predictable,…

Q: (c) Suppose that the unit tax is set at t = 0.1 per unit. What is the excess burden of this tax per…

A: Tax revenue is the money collected by a government through the imposition of taxes on individuals…

Q: Suppose Alex’s utility function for apple and orange is U(a,o) = a^2o. The price of an apple is $ 4,…

A: Given  Utility function Ua,o=a2o                   .... (1) Price of apple pa=$4 Price of orange…

Q: Define the differences, advantages or disadvantages to proprietorship, partnership, and corporate…

A: A business is an economic activity that creates, distributes, and sells commodities and services…

Q: A deposit of $1500 is made into a fund on March 18. The fund earns simple interest at 5%. On August…

A: Introduction  Simple interest paid or received over a certain period is a fixed percentage of the…

Q: Suppose 4 firms compete in a homogeneous-product Cournot oligopoly. If each firm's marginal cost…

A: The firm produces and sale in the market to make profit.  The profit is the main aim of firms.…

Q: Determine the FW of the following engineering project when the MARR is 15% per year. Is the project…

A: Future Worth: The future worth is considered as the value of an asset at a particular date with the…

Q: Figure Z 430 220 100 40 16 Price 2 n Supply 20 Quantity Refer to Figure Z. When is this supply curve…

A: Elasticity measures the percentage change in quantity due to percentage change in price.  The supply…

Q: Why is it more efficient for the government to offer employment insurnace than for private insurance…

A: Employment insurance (EI) is a program that provides financial assistance to eligible individuals…

Q: Price of Avocados ($) / Cost 25 24 23 22 21 20 19 Curve 3 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2…

A: The concept of 'cost' is used by almost every business unit. The key advantage of using the cost…

Q: In class Excercise #2 (= 1200) A Toyota canvis 100,000 A = 4000 Se 40,000 д B (Tesla) 170,000 A =…

A: Initial Cost = 170,000 Annual Cost = 1000 n = 6 r = 12%

Q: In class Excercise 12 i=1200) A Toyota canvas 100,00 A = 4000 Se 40,000 д B (Tesla) S=0 10,000 A.…

A: Initial Cost = 100,000 Annual Cost = 4000 Salvage Value = 40,000 n = 9 r = 12%

Q: Darla started a business making designer dog houses. In year 1, the total yearly costs were $10,000…

A: Practically every business unit use the concept of "cost." This cost metric has the virtue of…

Q: The market for smart phone applications is characterized by the following demand and supply curves.…

A: Introduction The only price at which consumer and producer plans coincide is the equilibrium price,…

Q: For an investment of$800 every 6 months at 6.2%/a compounded semi-annually for 20 years, what is the…

A: To calculate the value of the investment after 20 years, We can use the formula for the future…

Q: $19 96 30 16 13 10 O Multiple Choice O 100 O O 160180 210 Quantity Refer to the diagram for a…

A: Monopolistic competition is a market structure in which there are many sellers who offer similar but…

Q: PE P3 P₂ P₁ 0 Multiple Choice P₁- Q Refer to the diagram for a purely competitive producer. The…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Use the table below to calculate the MPC, MPS, government spending multiplier, and tax multiplier.…

A: Introduction MPC is the percentage of a family's income extra income that's consumed. The percentage…

Q: Question 3 Judge Mark Griffiths finds that Moodle is a relentless and predatory monopolist. Judge…

A: In economics, a monopoly refers to a situation where a single company or entity dominates the market…

Q: Please no written by hand solution Consider a Hotelling Game with 8 homogeneous firms. Customers…

A: A stable situation in which each player in a game selects a strategy that is optimal given the…

Q: Question 1: International interdependencies In a two-country world with countries A and B, A has an…

A: International interdependencies refer to the complex relationships that exist between countries as a…

Q: The following three mutually exclusive alternative proposals are being considered for flood proofing…

A: Equivalent annual cost (EAC) is the yearly cost of owning, operating, and maintaining an asset over…

Q: The date is 05/20/2021. You were hired six months ago by your congressional representative as a…

A: Fiscal policy refers to the set of tools that the government uses to control the situation of excess…

Q: Q10) assume for some reason 10 pizza rolls are bought and sold in the market, what is the value of…

A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

Q: I want a differrent answer for this question. the answer provided is too much publicated

A: To collectively represent their interests in the workplace, workers form unions. They frequently…

Q: Suppose an industry has three identical firms competing on quantities with demand P = 100 ― (2)Q and…

A: The term "identical firms" in economics refers to businesses that have identical cost structures,…

Q: The diagram below shows a monopolist's marginal cost schedule and the demand curve. Find and depict…

A: The terms "Mono" and "Poly," which are combined to form the word "monopoly," are the source of the…

Q: QUESTION 9 Consider a local fast food restaurant. The following table shows the maximum price that…

A: Bundled price is a pricing strategy in which a group of products or services are offered together as…

Q: ipam owns a firm that sells basketball apparel. As the firm's output increases, the firm's short-run…

A: An economy refers to the system of interrelated manufacturing and consumption activities that…

Q: Use a consumer surplus approach, to explain the effect of demand elasticity on the excess burden…

A: Demand elasticity: The demand function reflects an individual’s willingness to pay for each unit of…

Q: Use the DD-AA model to analyze the impact of a transitory decrease in the Foreign interest rate R*…

A: The AA-DD model is an economic model used to analyze the effects of exchange rate changes on a…

Q: Suppose you have the following information from a closed economy: C = 200+ 0.25 YD I = 150+ 0.25Y -…

A: The IS relation equilibrium can be computed by holding aggregate income on the left-hand side of the…

Q: from Profit = 144X – 3X² – XY – 2Y² + 120Y – 35  to get the Marginal profit of X = d(Profit)/dX  X…

A: Given information: Profit = 144X - 3X2 - XY - 2Y2 + 120Y - 35 The profit of the firm depends on the…

Q: I do not need the answer to A. Can I get help on part D?

A: In Economics terms, the average variable cost refers to the variable cost per unit. It will be…

Q: The U.S. population has a bubble of individuals known as the baby boomers. As this group retires,…

A: Saving is the practice of reserving a portion of one's current income for use in the future. It…

Q: Read “YOU’RE THE ECONOMIST: Recession Takes a Bite Out of Gator Profits” in Chapter 8. Assuming…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of…

A: Quantity 1 2 3 4 5 VC           P 130 110 90 70 50 TR           MR           MC 50 55 60…

Q: To what extent is the Lehman Brothers bankruptcy similar/different to the recent Silicon Valley Bank…

A: A bank crisis is a situation in which one or more banks experience severe financial distress, often…

Q: In a survey of 250 households regarding the ownership of desktop and laptop computers, the following…

A: The total number of households = 250.  Number of households that own only desktop computer = 130…

Q: A manufacturer has been selling 1100 QLED televisions a week at $540 each. A market survey indicates…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: 2. Which of the following is a characteristic feature of public goods? A. We need to pay to use…

A: The goods which are non excludable and non rival are considered to be as public goods.

Q: Find the present value of an annuity‐due of $200 per quarter for 2 years, if interest is compounded…

A: Given: Interest rate (i) = 8% compounded monthly PMT = $200 per quarter Year (n) = 2 years Payment…

Q: Suggest multiple managerial economics formulations of problems and 3 or more questions which can…

A: Microeconomic analysis is applied to business and management decision-making through the study of…

Q: If demand and supply change in the same direction, we equilibrium quantity and we the direction of…

A: If there is technological advancements that cut the cost of producing computer then the supply curve…

Q: Suppose a new article is published claiming that Houston has abnormally high levels of pollution…

A: Market equilibrium occurs at such a point where the demand curve and supply curve intersect each…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.