The car manufacturing market consists of 100 identical factories, each with a marginal cost curve represented by MC =120 + 20 where Q represents the amount of cars offered. a) Derive the industry supply curve for cars. b) If the demand for cars is represented by P=250- 4Q, how many cars are bought at equilibrium? c) Calculate the aggregate consumer and producer surplus at market equilibrium.
Q: 1. You purchased a bond for $925. The bond has a face value of $1,000 and it pays a dividend once a…
A: Solution:- a) a) Purchase price = $925 ; Sale Price = $850. Loss on bond buying then selling =…
Q: d. Now suppose that the supply of money is $1trn. Assume equilibrium in financial markets. Calculate…
A: In the classical theory the equilibrium rate of interest is the one which equals the supply of…
Q: NX rc S,I The graph shows the relationship between Savings (S), Investment (I) and w It is given…
A: *Answer: At world interest rate r, the saving is more than the investment, so the country is a net…
Q: Which of the following is an example of a negative externality (additional social cost)? Multiple…
A: When the creation or consumption of a product results in a cost to a third party, this is known as a…
Q: 3. You purchased a 5-year property class item for $60,000. After using this item for 3 years you…
A: MACRS depreciation method The modified accelerated cost recovery system (macrs) is a method of…
Q: Answer the following: If wages are sticky in the short-run, the short-run Phillips curve is…
A: Note:- Since we can only answer one question at a time we'll answer the first three. Please repost…
Q: A man invests in a project that requires a fixed capital of P 2.5M with no salvage, and life of 12…
A: Payout can be defined as the financial returns that are anticipated from a particular investment or…
Q: Q)Which of the following is not one of the determinants of labor force participation as discussed in…
A: The labor force participation rate is defined as the percentage of people of working age who are…
Q: Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and…
A:
Q: Determine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a…
A: Cost is the expenditure that is incurred in the production of goods and services in an economy. The…
Q: Which of the following are signs of inflation? A.The price of a house in a high-demand market…
A: Inflation refers to a decline in the purchasing power of the currency of a country over given period…
Q: Two installations are being considered to provide for water storage in a chemical plant. A tank on…
A: Present worth (PW) of option 1 can be calculated by using the following formula : PW = - Cost × (…
Q: Suppose that the monopolist can produce with total cost: TC = 200. Assume that the monopolist sells…
A: Price discrimination is the practice of a monopolist of charging different prices for the same good…
Q: what are the responsibilities of government during economic crises? 250 words
A: Responsibilities of government during economic crises- Fiscal policy is the tool which is use by…
Q: Trading blocs”/ Regional Integration efforts may be considered the status quo for international…
A: The interaction through which the world is becoming interconnected because of an enormous expansion…
Q: Critically compare the principles of the IRR and net present value methods including their…
A: B. Compare the principles of the IRR and net present value The net present value rule states that…
Q: Large stock market gains shifts the consumption function higher. O True O False
A: Consumption is a function of income. It is positively related to income and slopes upward, implies…
Q: Answer the question on the basis of the following two schedules, which show the amounts of…
A: "Utility is maximized at a point where the ratio of marginal utility to price of one good equates…
Q: A firm has invested a sum of £100 million to construct new manufacturing plant. Workers spend 90 per…
A: "The size of investment multiplier tells how much a rise in income occurs when autonomous investment…
Q: A recessionary gap exists when the macro economy is in equilibrium at less than the potential output…
A:
Q: Answer the questions below using the following linear equations: 2y - x = 12 3x + 2y = 36 Where…
A:
Q: Suppose a perfectly competitive industry can produce a product with total cost TC = 302 and the…
A: Monopoly is a single seller in the market selling unique good. It gives the monopolist to charge…
Q: Which of the following best represents a fixed cost: а. payroll b.rent Oc. cost of merchandise sold…
A: Cost refers to all the expenses occur in the process of production. Mainly there are two types of…
Q: U.S. exports to Canada are are positively related to Canada's GDP. positively related to the…
A: US exports refers to goods produced in the US, sold to foreign countries.
Q: Suppose that we observe the following change in the international market for USD: USD B D Suppose…
A: The answer is - a. It would sell USD on the world market, causing the USD to depreciate
Q: 3.1. Explain, with the aid of examples, the following economic concepts in terms of utility theory:…
A: Utility means satisfaction which is derived by the consumption of goods and services . There are…
Q: Qd=5.3-0.1p where Qd is the number of new automobiles demanded per year (in millions) when P is the…
A: The demand equation: Qd = 5.3 - 0.1P whereas, Qd = Number of new automobiles demanded per year (in…
Q: A recessionary gap exists when the macro economy is in equilibrium at less than the potential output…
A: Answer: False
Q: Consider the long-run equilibrium output, the potential output, the full-employment output, and the…
A: The quantity of goods and services that are being produced in an economy during a given time span is…
Q: Suppose that in normal years demand is represented by Case 2, and supply is represented by Case B.…
A: PLEASE FIND THE ANSWER BELOW.
Q: -) Consider a two-person, two-commodity, pure exchange, co economy. The consumers' utility functions…
A: *Answer:
Q: Given the demand function D(p) = 175 – 2p“, %3D - Find the Elasticity of Demand at a price of $1
A: At p= 1, D(p=1) = 175 -2(1)2 = 175 -2 = 173
Q: Suppose that real GDP was $2265 billion in 2018 and $2285 billion in 2019. Calculate the growth rate…
A: Given:GDP in 2018=$2265GDP in 2019=$2285
Q: 3 8. Let be the utility function U(x, y) =(xi+ 2yä), , where x and y are the quantities consumed of…
A: Introduction We have given a utility function of two commodities x and y. Here given utility…
Q: What are the 2 pros and 2 cons of a stronger dollar policy on the American economy
A: The United States' strong dollar strategy is based on the concept that a strong dollar exchange…
Q: 3 When the Reserve Bank sells government securities, the banks' Group of answer choic…
A: In Open Market Operations, buying and selling of government securities and bonds leads to changes in…
Q: Cite specific ways on how the areas of legal and political environment could improve or impact…
A: There are many external factors that affect the company's environment.
Q: What are the effects of a decrease in the price level? Select one: O a. The real interest rate…
A: In an economy, any change in inflation or price level will lead to change the value of the currency…
Q: You are the manager of medium-sized company that deals in production of make-ups in Ghana. Suppose…
A: There are various other factors that lead to shift in demand and supply curve . Here tax and price…
Q: In the Keynesian short-run macro model, a fall in the money supply will a)move the economy to the…
A: Aggregate expenditure is the sum of consumption spending, investment spending, government purchases…
Q: Suppose the supply function is given as Qs = -6 + BP. I. Construct a supply schodule if prices are…
A:
Q: Suppose C = 9 + 0.75Y – 0.75T – 50r, I = 15 – 100r, T = 16, G = 21, and potential output is 125. r…
A:
Q: Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information…
A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…
Q: how can globalization help daily life of the people.
A: Globalistion is the process of integration among people and the government of different companies.
Q: If an economy starts in a long run equilibrium and then there is a large decrease in the stock…
A: Long-run equilibrium refers to an equilibrium where the aggregate demand curve and aggregate supply…
Q: Figure: Tax on Buyers 2 Price $10 9. 8. 7. 4 Dwith tex 0. 1 5 6 7 8 9 10 11 12 Quantity In the…
A: The figure shows that the tax is imposed on buyers. The demand curve is shifted to the left. This…
Q: You are a manager of a retail store and you are facing a lot of challenges to know if you should…
A:
Q: International trade causes the loss of jobs in industries where a country has Select the correct…
A: International trade occurs when a country export or import goods with other countries.
Q: Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and…
A: The factor of production (inputs) can be either fixed or variable in the short run. Inputs are…
Q: Does the price control mechanism (price floor and price sealing) to a resource shortage provide an…
A: Yes, the price mechanism gives a positive and negative feedback loop.
The car manufacturing market consists of
100 identical factories, each with a marginal
cost curve represented by MC =120 + 20
where Q represents the amount of cars
offered.
a) Derive the industry supply curve for cars.
b) If the
P=250- 4Q, how many cars are bought at
equilibrium?
c) Calculate the aggregate
producer surplus
Step by step
Solved in 3 steps
- Suppose that pig farming in a region is a perfectly compet- itive industry. However, one negative consequence of this activity is that it creates water pollution that adversely affects the health of the residents in the nearby communities that rely on the water sources that are contaminated by the pig farms. The market supply curve for pigs (or hogs) is given by H^S = 6p where H^S is the quantity of hogs supplied to the market by farmers in this region. The market demand for hogs is given by H^P = 300 – 4p. The government estimates that the additional medical costs (M) imposed on the nearby communities is given by M = 5H, where H is the quantity of hogs produced and sold in the market. Q: In the absence of clearly defined property rights over water use or con- ventions or some form of government intervention, derive the market equilibrium for hogs and the DWL resulting from the additional medical costs associated with hog production. Please show the formula, thank you.Consider a competitive market for some commodity x in which some firms are polluters. Firm A: C(xA ) = 25xA and the environmental cost to society is E(xA ) = 15xA. Firm B: C(xB) = (1/10)x (xB x xB ) and the environmental cost to society is E(xB ) = 0. Assume initially that the market operates without any recognition of environmental costs. Both firms are price-takers. Determine for what prices Firm A will provide the good? Does it matter to firm A what quantity is supplied? Find the supply function for Firm B. Assume the market demand for the commodity is given by x(p)=40000/p 3. Find the competitive market equilibrium price and quantity using your answers in 1) and 2) when the firm supplies reflect their ability to compete at a given price. 4. Suppose a planner uses the representative consumer’s utility function, to find the socially optimal allocation of resources to the two firms. Choose (xA, xB, Y) to solve max U(x, y) = (40000)ln(X) + Y Subject to x= xA + xB, xA ≥ 0 xB…Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc.
- Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. A) With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc. B) Suppose that the price of geothermal increases. On the graph drawn in part A, show precisely how the supply curve changes. C) Suppose that the price of geothermal increases. In a market…The competitive market for Botox procedures is characterized by the following supply and demand curves: QS = −2,000 + 10P and QD = 24,000 −16P where P is the price of the procedure and QS is the quantity supplied and QD is the quantity demanded. a: Solve for the equilibrium quantity and price in the Botox market.b: Neatly graph the market for Botox procedures, showing the vertical intercepts of the supplyand demand curves. Show the equilibrium.Continuing your analysis of the competitive US manufacturing industry from Question 1, withdemand of Qd = 500 – 8P and supply of Qs = 4P – 100, suppose a technological innovationcauses the supply curve to increase, shifting the curve down by $15 for every given quantity Q. Determine the new supply equation. Solve for equilibrium price P2 and quantity Q2. Depict the original supply S1, the new supply S2, and the original demand D1 on theusual P, Q diagram. Label all intercepts (including two intercepts for the demand curveand one intercept for the supply curve). Clearly indicate and label the new marketequilibrium. Graphically indicate the areas of Consumer Surplus (CS2) and Producer Surplus (PS2)that resulted from the new market equilibrium. Compute the values of Consumer Surplus (CS2) and Producer Surplus (PS2) associatedwith the new market equilibrium, clearly indicating the units that CS and PS aremeasured in. Who has benefited from technological innovation, based on the…
- Suppose the inverse market demand for manufactures is P(Q) = A – Q, where P and Q denoteprice and total goods produced and the parameter A denotes the size of the domestic market.Suppose any firm has a cost function, c(q) = cq, where A > c. Suppose there are two firm in themarket which produce q1 and q2, where Q = q1 + q2.a. Solve for the Cournot equilibrium levels of output (Q*), price (P*) and markups.b. What is the impact of an increase in market size, A, on Q*, P* and markups when there are twofirms? Provide some intuition for these predictions.c. Suppose a third firm enters so that Q = q1 + q2 + q3. What is the impact of entry on Q*, P* andmarkups? And why? Explanation and math work for all three parts please!!The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. Provide a fully labelled diagram to support your answer. Show all intercepts, equilibrium points, label axis and curves fully. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Calculate the consumer surplus with the price floor. PLEASE DRAW THE DIAGRAM ! Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. Provide a fully labelled diagram to support your answer. Show all intercepts, equilibrium points, label axis and curves fully. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Calculate the consumer surplus with the price floor. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Suppose that a chemical manufacturing plant is releasing nitrogen oxides into the air, and these emissions are associated with health and ecological damages. Economists have estimated the following marginal costs and benefits for the chemical market, where Q is monthly output in thousands of pounds and P is price per pound. MSB = 50 – 0.4Q MSC = 2 + 0.4Q MEB = 0 MEC = 0.2Q. Find the competitive equilibrium, QC and PC.An airline company determines the price of a seat on a particular route betweencity A and city B to bep = 200 + 0.02n,where p is the airfare price in euro and n is the number of airplane seats sold perday.The travel demand for this route by air has been found to ben = 4700 – 20p Q1 (A)Construct the demand and supply curves for this air transportation market. Q1 (B)Determine the equilibrium price charged and the number of seats sold per day,and the resulting revenues of the company. Q1 (C)Suppose that the airline company decides to connect city A with city B through anindirect flight service via a regional hub at city C. Discuss the implications of thisdecision from the company’s and the customers’ viewpoinWe are given the market information of pizza as below: a)Define the market demand equation and supply equation. a)Estimate the consumers’ surplus, producers' surplus and total market’s surplus