Suppose the market for cereal is monopolis competitive and in long-run equilibrium. TH demand (and marginal revenue) for a firm i is illustrated in the graph to the right, along average total cost and marginal cost of pro- brand of cereal. Compared to perfectly competitive markets he long-run, monopolistically competitive m
Q: Suppose the government of the island has decided to make tomatoes more affordable to consumers by…
A: The concept is based on the interaction of the supply and demand curve in which supply is an…
Q: write a explanation about UN sustainability goals 8 and 12 and elkington's triple bottom line and…
A: Goal 8: Decent work and economic growth: Promote comprehensive and effective employment, fair work…
Q: Suppose that the parents of a young child decide to make annual deposits into a savings account,…
A: Given cash flow: Rate of interest =8% compounded continuously. Required: Value of A.
Q: e dle Top Middle Bottom Left Column (-5, -1) (1,-3) (0, 10) Center (2, 2) (1,2) (0,0) Right (3, 3)…
A: The concept is based on game theory. The dominant strategy of row player means that the strategy…
Q: decreasing taxes on financial capital to increase the pace of capital accumulation
A: B. The government can boost economic growth by decreasing taxes on financial capital to increase the…
Q: Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has…
A: The demand is an economic idea that connects with a customer's longing to buy labor and products and…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…
A: ANSWER: Given information: P = MR = $90 TC = 60 + 14Q + 2Q2 Thus, from TC, calculate MC as : dTC /…
Q: One of the duties of a bank is to repay money on demand in accordance with the customer’s written…
A: Banks are financial institutions that provide various financial services like deposits, loans, and…
Q: The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. If the salvage…
A: Cost of equipment =P 500,000 Installation cost =P30,000 Salvage value after 5 years=10% of the cost.…
Q: 18. The Beveridge curve gives a a. Positive; Inflation and unemployment b. Positive; Inflation and…
A: Since you have asked multiple questions, we would be answering the first one for you. To get the…
Q: A profit-maximizing monopolist faces the demand curve q= 100-3p. It produces at a constant marginal…
A: A firm is said to be monopolist when there is no other seller to sell that particular product. There…
Q: There are two countries in the world economy: Home and Foreign. Home has 3000 units of labor…
A: Labor Requirements in both the countries - COFFEE SUGAR Total Labor HOME 4 10 3000 FOREIGN…
Q: A house owner received rental payment of P25000 every month for 5 years. Payments are being paid at…
A: Given information, Monthly Payment (A): P25000 Time period (N): 60 (5 years) Interest rate (i): 10%…
Q: A country's structural unemployment rate is 4.2%, the natural unemployment rate is 5.6%, and the…
A: The unemployment rate is the sum of structural unemployment, frictional unemployment, and cyclical…
Q: Define the Fisher effect. To what extent do empirical tests confirm that the Fisher effect exists in…
A: The measure that depicts the amount being charged by the lender that is over and above the principal…
Q: Consider each scenario independently. In each of the following cases tell me, using verbal and…
A: (g) The following diagram shows the tax on gun buyers. Initial Demand is D1 and supply is S1. Due to…
Q: Company A has several divisions including a Capacitor Division that sells capacitors to both…
A: ANSWER: Now to understand the mechanics of cost and profit, we first need to understand two…
Q: 19. Dani sells roses in a competitive market where the price of a rose is $8. Use this information…
A: In case of Perfect Competition a firm maximizes profit by producing output at level where Price is…
Q: A monopoly's inverse demand function is as follows: P = 1450 - 58Q. Its total cost function is as…
A: The inverse demand function will be considering the price to be a function of quantity.…
Q: Consider a Solow growth model in which the production function is Y₁ = AK/21 1/2 N₁¹/2, where A = 1.…
A: The steady state is reached where the change in the per capita variables such as the output per…
Q: Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save less. This…
A: Consumers use their income for both saving and consumption. The portion of revenue spent on goods…
Q: 8. Given the following on a closed economy. C= consumption C = 40 + 0.8Yd 1 = 55-200r G = 20 T = 20…
A:
Q: For a decrease in the price of capital (K), construct a table AND explain the scale and substitution…
A: Cost minimization The reduction of spending on pointless or ineffective processes is known as cost…
Q: The city of Cedar Rapids has a large number of video poker arcades. The demand by patrons for the…
A: Quantity demanded refers to the number of units of the goods demanded by the consumers at a…
Q: Question 5 Pedro's utility function is U(a, b) =a+10b-b², where a is the amount of apples consumed…
A: Utility function : U (a, b) = a+ 10b−b2 Income = 100 b pounds on banana cost = b2 1 pound of banana…
Q: What is the Hausman Test? Explain its relevance.
A: The Hausman test is a test for whether one model is more efficient than another. It is relevant when…
Q: Assume that firms that change the oil in cars compete in a perfectly competitive industry with many…
A: The Bertrand competition model of competition puts two or more firms against one another on pricing…
Q: Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of…
A: Expected value (EV) defines the long-term average level of a random variable depend on its…
Q: Contingency planning involves a. identifying aspects of a business that require changes in…
A: A contingency plan is a strategy created to assist an organisation in effectively responding to a…
Q: Suppose that we are considering the market for windmills. The private demand for electric cars is…
A: Disclaimer: _ since you asked multipart question, we are solving 1st 3 parts as per guidelines. If…
Q: Table 1. U.S. Gross Domestic Product in 1945 and 1946 1945 1946 Nominal GDP $0.2 trillion…
A: The production of goods and services in an economy is evaluated using nominal GDP, which also takes…
Q: What should be the value of a so that Player 1 will have a dominant strategy? PLAYER 2 C D (2,4)…
A: Strategic dominance can be understand as any player will choose the best/better strategy…
Q: movement from point A to point B represents: movement from point B to point C represents: movement…
A: Refer to the diagram to answer the following.
Q: _______ of unemployment during ________ make it easier for workers to ________ wages. High levels; a…
A: When talking about unemployment and wage rate, it can be said that when labor demand exceeds labor…
Q: Continue your analysis of the video poker market in Cedar Rapids: demand by patrons for the games…
A:
Q: a. A lottery claims its grand prize is $2 million, payable over 4 years at $500,000 per year. If the…
A: Interest rate is the amount charged over and above the principal amount by the lender from the…
Q: Question 3 Question 3 Part a John has $100 that he can spend on milk and gas. A gallon of milk costs…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Suppose that the demand is given by P(Q) = 4 - Q and that the total cost is C = 2Q. a) Find the…
A: Deadweight loss refers to loss to society due to inefficient quantity produced. Under perfect…
Q: Consider the following data on Prices and Quantities of T-Shirts and Pajamas 4. What wasthe growth…
A:
Q: Imagine the following case study where two different countries: Albania and Belize have remained…
A: Output per worker in both the countries - Each country has workforce of 15 workers .
Q: b. An exogenous increase in the price of oil. Price Level (Y) 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 LRAS E…
A: The total quantity of all goods (and services) that the economy demands at various price levels is…
Q: Read the questions and instruction carefully. Show all necessary steps and reasonings that lead to…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: how much money must you invest today in order to withdraw P1000 per month for 10 years if the…
A: Given that, Withdraw Amount = 1000 Rate of Interest = 12% Time Period = 10 years
Q: 29. If full-employment real GDP in this economy is $3,500 billion, how much of an increase in…
A: The multiplier effect refers to any adjustments in consumer spending that occur after any real GDP…
Q: 2. For the Income-Consumption Line & Engel Curve: (kindly place Good A on the X-axis & Good B on the…
A: Here we are given the information related to consumer's budget. Using this budget and the…
Q: explain what is the circular flow diagram illustrates for a macroeconomy.
A:
Q: e analysis for the market for loanable funds diagram to illustrate and explain how the following…
A: The market for loanable funds are defined as intersection of demand for loanable funds and supply of…
Q: A firm’s marginal revenue function is ?? = −9? + 126. Use indefinite integrals to solve for the…
A: The additional total revenue produced by increasing product sales by 1 unit is known as marginal…
Q: A Civil Engineer is considering establishing his own company. An investment of P4,000,000 will be…
A: Given, Initial Investment = 4 000000 Life = 15 years Total Annual Cost = Materials Cost + Labor…
Q: If Q = 0.5 K² L², and we use 2 units of capital and 2 units of labour, what is the average product…
A: Average product = Total productLWhere L is labour
Only typed answer
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the relationship between product differentiation and monopolistic competition?If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?Continuing with the scenario in question 1, in the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or film outside. As those films capture the original films profit, what will happen to the original films profit-maximizing price and output levels?
- Think about firms such as the Coca Cola Company and PepsiCo who competeagainst each other in the monopolistically competitive market for soft drinks. Eachfirm produces a unique product, but each of these unique products is to some extenta substitute for the soft drinks produced by rival companies.Now imagine a situation where the firms within such a market are facing suchextreme competition that they are unable to make an operating profit. Characterisethis situation diagrammatically and explain what will happen to the market, payingparticular attention to the exit or entry of firms out of (or into) the market.1. If the firms in a monopolistically competitive marketare earning economic profits or losses in the short run,would you expect them to continue doing so in the longrun? Why? 2. Is a monopolistically competitive firmproductively efficient? Is it allocatively efficient? Whyor why not? 3. What stops oligopolists from acting together asa monopolist and earning the highest possible level ofprofits?The American market for shoes is a good example of monopolistic competition. In a situation where Adidas is earning a large economic profit in the short-run, Nikemay try to increase their advertising to capture some of that business, If Nike is successful in their campaign, what would happen to the demand curve for Adidas and the price at which they can sell?O a. The demand curve shifts up and to the right, and the price rises.O b. The demand curve shifts up and to the right, and the price falls.O c. The demand curve shifts down and to the left, and the price walls.O d. The demand curve shifts down and to the left, and the price rises.Oe. Nike cannot affect the demand for Adidas since this is a monopolistically competitive market.
- Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 52 units of output per day. The average total cost (ATC) for those 52 units is $10.Instruction: Round your answers below to the nearest whole number.How much revenue will the firm take in each day? $ What will be the firm's economic profit or loss? of $ Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium.If the firm’s daily output remains at 52 units, what price will it be able to charge? $ What will be its economic profit or loss? of $Assume that in short-run equilibrium, a particular monopolistically competitive restaurant (Applebee's) charges $12 for each order of Chicken Parmesan and sells 52 orders per day. The average total cost (ATC) for those 52 orders is $10. How much revenue will the firm take in each day? $ What will be the firm's economic profit or loss on Chicken Parmesan? Next, suppose that other restaurants add/remove chicken parmesan from their menus (entry or exit occurs) and a long-run equilibrium is established. If the Applebees daily Chicken Parmesan orders remain at 52 units, what price will it be able to charge? $ What will be its economic profit or loss?There is much evidence that large firms with considerable market power (firms such asmonopolies) may not maximize profits but may pursue quite different objectives such asgrowth or sales revenue maximization. What are the arguments put forward to defendmonopoly? Name any 5 Generally, the aim of a business is to maximize profit. Which point should a firm operateat in order to achieve maximum profit? By making use of a graph indicate clearly the pointat which a firm makes maximum profit and a point where a firm increase their output inorder to enhance profit as well as well as the points where they should reduce theirproduction if they want to enhance profit
- Suppose that the market for e-readers is an oligopoly controlled by Amazon.com , Barnes and Noble,Sony, and Apple. Barnes and Noble is consideringincreasing its output. How would this affect themarket price? How would it affect the profits ofeach company?There are two firms in the market (duopoly). These two firms are competingsimultaneously. The first firm chooses its output level (x) by predicting the second firm’soutput (y). Let c denote the total cost function c(x) = x and c(y) = y. Also, let’s assumethat the inverse demand function is p(Y) = 7 - Y where Y = x + y. (1) Obtain the reactionfunction of the first firm. (2) Find the equilibrium (output and profit of each firm) whentwo firms simultaneously competeIn California, let’s assume that Armando sells bagels in a monopolisticly competitive market. Armando compiled the data represented in the table below to determine the profit-maximizing quantity at which he should sell. What is Armando’s bagel store’s profit-maximizing quantity? Quantity Price TotalRevenue MarginalRevenue TotalCost MarginalCost 5 $21 $105 $21 $150 $30 10 $18 $180 $15 $160 $2 15 $16 $240 $12 $180 $4 20 $14 $280 $8 $220 $8 25 $11 $275 $1 $270 $10 30 $10 $300 $0 $330 $12 35 $8 $280 −$4 $400 $14