Answered: the cost of producing a bottle of zlurp…

the cost of producing a bottle of zlurp is 1.50, and the competitive suppliers sell it at this price. Each whovillian will consume

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 4QP: Compare the firms least-cost rule with how buyers allocate their consumption dollars.

See similar textbooks

Related questions

Q: Market price is always more than factor cost. True /False

A: We must remember that to calculate the Market price we have to add up the net Indirect taxes to the…

Q: The smallest positive level of output that the firm will produce is equal to Q4 Q2 Q3 Q1

A: The profit-maximizing level of output is that point where two conditions hold true, that is marginal…

Q: Over-production results in

A: Over Production refers to the situation when the firm produces quantity of goods more than its…

Q: loss of competitive value of your competitors resource can also impact the value of your resource…

A: A resource or capability is considered to be valuable in the scenario if it allows the firm to…

Q: Best Orange Juice Company is located in Oman. The cost function for total orange juice production…

A: Profit maximization is either the short run or long run process by through which a firm might…

Q: Manufacturing highly standardized products are usually more profitable in high context cultures due…

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: The marginal cost of admitting an additional fan to watch the Sacramento Kings play basketball is…

A: The concept of marginal cost comes out of the topic of total cost which is given by the sum of…

Q: Hardware, a small family-owned store in Middletown, sells a 100-pack of garnet sandpaper for $35.…

A: The rivalry between firms that offer related goods and services to gain growth in sales, benefits,…

Q: Resale Price Predatory Pricing Scenario Tying Maintenance Snackyville sells a wide variety of snacks…

A: Tying - consumer can buy a certain good with a mandatory purchase of another good. Resale price…

Q: Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to…

A: Re ordering level (RL) can be calculated by using the following formula.

Q: Film producer S costs c=20 to produce one film. B, a movie distributor, earns v=120 if the movie is…

Q: true or false The rational and profit maximizing firm will choose to operate in Stage 1 or Stage 2…

A: Total product is defined as the total amount of output produced by employing given amount of input.…

Q: Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She…

A: Rule of thumb for pricing with an "incremental margin percentage" Incremental margin percentage =…

Q: Buyer power is high when there are few available substitutes for the firm's product. a. True b.…

A: When there are only few substitutes available of the good, then the buyers power in the market is…

Q: A factory produces chemicalK and effluent E which it dumps into the river. It affects the downstream…

A: In this question we have to find the optimal value of K, E and F

Q: Maximizing total revenue is the same as maximizing profit is this true or false

A: What is total revenue maximization? In total revenue maximization we try to find out the price or…

Q: When price is _______ average cost of production, profits are ______ due to ________ averate…

A: Introduction this topic is related cost of production

Q: Homogeneous products Substitute

A: A homogeneous item is one that can't be recognized from contending items from various providers. All…

Q: Economic efficiency means using the method that produces given level of output at_

A: Economic efficiency implies utilizing the technique that creates a given degree of yield at the most…

Q: A market Multiple Choice O reflects upsloping demand and downsloping supply curves.

A: The demand curve depicts the inverse relationship between price and quantity demanded. Hence, the…

Q: The marginal cost of the fifth sweatshirt is:

A: option D is the right answer Marginal cost of fifth sweatshirt is $17 calculation of marginal cost…

Q: Best Orange Juice Company is located in Oman. The cost function for total orange juice production…

A: Profit maximizing quantity is where marginal revenue (MR) equals marginal cost (MC).

Q: In a perfectly competitive market, the market demand curve isQd=10-pd, and the market supply curve…

A: The supply and demand curves cross, leading to the equilibrium value and amount. once the amount…

Q: b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness…

A: Whenever the demand (dd) and supply (ss) increase/decrease simultaneously the decision regarding the…

Q: Q.Many firms depend on the opinions and experiences of others in evaluating a new business proposal…

A: Opinions / views of customers and other companies help the new companies to stay ready with their…

Q: If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a…

A: Marginal revenue: It is earned by producing an additional unit of a good or service.

Q: There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of…

A: a. There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size…

Q: Discuss three negative and three positive consequences for firms operating in a market economy. More…

A: First of all, if a firm is operating a business in the market then this firm has to participate all…

Q: Your firm is considering entering a new territory. From market research, you have obtained the…

A: Given Q = 20 - 6P + 2A A=10,000 =10 (in thousands) MC=1 Q=20-6P+2(10) Q=20-6P+20 Q=40-6P 6P=40-Q…

Q: nypotnetical Canopy GroWth Hotel In ictoria, British Columbla Which Unprofitable will stay open in…

A: Short-run is the concept that, at some point in the future, at least one input is adjusted while the…

Q: Let's say there is demand in a market. The unit cost of production of the good is fixed and is at…

A: Technology: Technology is the utilization of logical information for pragmatic purposes or…

Q: Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes…

A: In response to the demands of consumers for various goods and services, a market that is competitive…

Q: Iowa farmers can choose from five different manufacturers of farm implement equipment. Two of these…

A: Duopoly is a special type of oligopoly in which there are two firms in the market or the two firms…

Q: A semiprofessional baseball team near your town plays two home games each month at the local…

A: According to question, given that the data on cost and revenue for the team. We need to find out the…

Q: Matching demand with capacity is the focus of_______ management.

A: Meaning of Services: The term services are the intangible things that a firm or an organization…

Q: A firm produces two different kinds A and B of a commodity.The daily cost of producing x units of A…

A: The profits function is the function of the quantity of goods produced and is the revenue function…

Q: Consider that your profit-maximizing quantity of 200 can be produced at an average cost per unit of…

A: Profit is the difference between total revenue and total cost.

Q: The demand function for rooms is Q,(p) = 700 - 5p, where Q, is the number of rooms demanded and p is…

A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.

Q: A decrease in the cost of the flour used to bake bread is most likely to

A: A decrease in the cost of the flour used to bake bread can affect the quantity demanded and the…

Q: You run a donut shop. You have two types of customers – early morning, and late morning. Below are…

A: Bundle pricing is a method in which producers bundle there different goods and charge a single price…

Q: A firm is jointly producing two products with variable proportions. If the price of one of the…

A: Profit maximization is the short run or long run process through which a firm might tend to…

Q: The producer is in equilibrium at a point where the cost line is

A: To find the equilibrium at a point where the cost line is :

Q: To sell one more unit of output, the seller must make one more and sell it for less than the price…

A: Marginal revenue is the additional revenue earned with an additional unit sold. Demand curve is…

Q: Why is incremental cost pricing the correct pricing method?

A: Incremental cost pricing is a method of pricing in which the price is determined on the basis of…

Question

the cost of producing a bottle of zlurp is 1.50, and the competitive suppliers sell it at this price. Each whovillian will consume

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Compare the firms least-cost rule with how buyers allocate their consumption dollars.
Matching demand with capacity is the focus of_______ management.
Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She practices a rule-of-thumb for pricing with an “incremental margin percentage” of 70%. Find the price she should charge for her smartphones.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won& buy it because they done like the taste. From an economic perspective, the company should.......... keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
The covid 19 pandemic has had a significant impact on the clothing industry. With more people working from home, the demand for business attire dramatically decreased. In the short run, a struggling business attire retailer should temporarily shut down if at the profit-maximizing or loss minimizing point the marginal revenue curve is
Distinguish between technical efficiency and economic efficiency
Roger Clark obtains long-stem roses from Fred’s Flowers each Friday for sale to the public. Fred generally sells Roger flowers that, if left over the weekend, would likely be unsalable the next week. Hence, he is willing to give Roger a good price on his remaining long-stem roses and to take back any roses that are not sold over the weekend and give Roger partial credit for them. Roses are sold to Roger in quantities or units of one dozen each and at a price of $10 per dozen. Roger sells the roses for $15 per dozen, and any remaining unsold over the weekend can be returned to Fred at a credit of $8 per dozen. Although the number of roses remaining to be sold at the end of the week varies, Fred is willing to let Roger have as many as six dozen each weekend and supply him with fresh flowers at the same price if Roger desires more than the quantity of “old” roses that Fred has. Characterize this decision problem both in terms of the various states of nature (demands) and in terms of the…
Bevan’s Cycles, a chain of bike shops that were early adopters of an online business model, are trying to improve customer satisfaction from bike purchases. To do so, they are considering setting up a ‘fitting service’ to help customers get the perfect fit on their bikes, thus reducing bicycles returned. The way the service would operate is that customers will book a session with a ‘fitting expert’. This will involve the customer coming into the shop where they will be filmed riding a stationary bike (like you get at the gym) and then the film will be analysed by a computer system to give them the perfect fitting bike. At each bike shop, this will entail a fixed cost for installing the computer system for analysing each customer and a marginal cost for training each member of staff. The head office sets a budget of £10,000 if 2 members of staff are trained, and for the bigger stores £12,000 if 3 members of staff are trained. The total expense for this must be incurred in a single year.…
In the long run, a firm will choose a plant size that has the Multiple Choice minimum average total cost of producing its target level of output. capacity to produce the largest quantity of output. minimum of its average fixed cost. maximum level of resource use per unit of output.
There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through a.economies of scale b.government protection c.control of an important input . b. ABC’s market power a.does b.does not guarantee that the firm makes an economic profit.
Organizations that maintain a large amount of inventory of raw materials will incur heavy losses in case of: Select one: Sudden increase in prices. Sudden decrease in prices. Sudden scarcity in materials. High increase in demand.
Exercise 4.6 An econometrician hired to analyse a local golf course has determined that there are two types of golfers, the regular and the occasional. The annual demand for games from regular players is given by QH = 24 – 0.3P, where P is the price of a round of golf. On the other hand, the annual demand for occasional items is given by QO = 10 – 0.1P. The marginal cost and the average total cost per item are equal to €20. a) If you could distinguish between regular and casual players, what price would be set for each type? How many games would each type of player play? How much profit could the golf course generate? Represent graphically. b) As an alternative to the discrimination of third degree prices, those in charge consider a double tranche rate according to which the members can play as many games as they wish at a price of € 20 per game. How much profit will the golf course generate if it charges all players the same annual fee for becoming a member of the club? What if you…