the long-run equilibrium, all firms in a perfectly competitive market earn zero economic profit. Explain why this is true using intuition and graphs.

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Q: Assume both firm 1 and firm 2 are in the market and act as oligopolists. Assume furthermore that the...

A: In Bertrand competition, firms charges price of its product simultaneously.

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Q: 1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I= 300 G...

A: Disposable income = Y-T [a] C = 400 + (8/9)*DI I = 300 G = 800 T = (1/2)*Y (X-M) = 0 Y = C + I + G +...

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Q: The occurrence of financial crowding out implies that: Short-run fiscal expansion increases the siz...

A: Crowding out is an economic situation where an expansion in government spending crowd outs the inves...

Q: Alex decided to stop watching squirrels and open a squirrel pet store. She took $100,000 out of her ...

A: Given:Total revenue=40,000Implicit cost=Interest on savingsImplicit cost=100,000×20%Impicit cost=20,...

Q: Suppose the economy of Canada is governed by the following consumption function, nvestment function,...

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Q: A columnist in the Wall Street Journal refers to “the fear that central banks are powerless to act w...

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Q: a. What price will prevail in this market? 10 b. What quantity is produced? 10 smoothies c. How much...

A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well...

Q: If the Bank of Canada announces its target for the overnight raté at 2.5 percent, nen he bank rate i...

A: The overnight rate is the interest rate at which commercial banks borrow and lend to each other in t...

Q: x(q) = R(a)- C(a) = 180g - (665 + 20g + 10g). What is the positive output level that maximizes the f...

A: In economics, profit maximization is the short run or long run process by which a firm may determine...

Q: High and uncertain inflation is damaging to the economy because... O a. There can be unexpected real...

A:  Inflation refers to an increase in the general price level in an economy over a period of time. Inf...

Q: Suppose a company lIncurs the following costs: labor, $3,500; equipment, $900; and materials, $1,400...

A: Accounting costs are any expenses that your company has incurred.By deducting expenditures from inco...

Q: Suppose that nominal GDP was $12 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion...

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Q: Price 38 Supply 34 28 22 16 Demand 10 6 4 5 10 20 30 50 60 70 80 90 Quantity 40 2.

A: When the world price is less than the equilibrium price, then the domestic demand will be higher tha...

Q: Real GDP in 2015 is $100b and real GDP in 2016 is $110b. In 2016, nominal GDP grows by 3%. What can ...

A:

Q: If there is an inflationary gap in the Canadian prairies and a recessionary gap in Ontario, what doe...

A: An inflationary gap is basically a macroeconomic concept that describes the gap between current real...

Q: 5- a) There are 3 firms competing over quantities. The market share of firm 1 is 0.3 and its margina...

A: PLEASE FIND THE ANSWER BELOW.

Q: 21. Maximum revenue and profit. A company manufactures and sells x television sets per month. The mo...

A: Answer: Given, Cost function: Cx=72,000+60x Demand function: p=200-x30    0≤x≤6,000 (A). Let us firs...

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Q: A man deposits Php 6,000 in a strange bank that promises 1.5% simple growth interest for 'w' years. ...

A: Given: Amount deposited=Php 6000 Simple interest growth=1.5%  

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Q: In April 2002, the price of a Big Mac in the UK was £1.99. Using data from The Economist's Big Mac I...

A: Developed in 1986 by The Economist magazine, the Big Mac index uses McDonald's Big Mac prices as a b...

Q: wages = 700 goverment spending = 2,300 investment = 2,300 rent = 200 consuption = 7,400 net exports ...

A: GDP =w + i + C+ I  + G + (X - M)          = 700 + 200 + 7400 + 2300 + 2300 + 400           = 13,300

Q: Assume you are selling pizzas at $3 per pizza Your fixed costs (rent, salaries, and utilities) are $...

A: At Break Even Point, total revenue is equal to total cost. A firm neither earns profit nor incur los...

Q: 5. Comerica's Balance Sheet information is given in the table below Assets Liabilities Reserves - $7...

A: In the mentioned question we have to calculate the excess reserve.

Q: MC ATC MR Quantity The diagram portrays Multiple Choice the equilibrium position of a competitive fi...

A: Competitive market refers top a market where there are many buyers and sellers in the market selling...

Q: Description Throughout this Quiz, we will consider of an industry with either one or two firms in it...

A: Considering both firms to be profit maximizing: IN case of bertrand competition where firms charge p...

Q: Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and  public ...

A: Given that, GDP = $8billion  Taxes = $1.5 billion  Private saving = $0.5 billion  Public saving = 0....

Q: 1. Can you estimate a regression model for Y and X? 2. What are the assumptions of the model in 1? 3...

A: According to the answering guidelines, we can answer only three subparts of a question and the rest ...

Q: WORLD

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Q: Assets 1. A $10 bill 2. The funds in a money market account 3. A share in a publicly traded company ...

A: Liquidity is the degree of quick  convertibility of any assets into the cash . The asset is said to ...

Q: 1. How much would be in your account in 10 years after depositing $2000 now? The annual interest rat...

A: All the Answers are given below.  

Q: 12. Prove, using Eq. (4-42), that the long-run supply curve of a competitive firm is more elastic th...

A: Introduction Long run supply curve is more elastic because we have enough time for doing adjustments...

Q: How to explain indifference curve and also describe the properties of indifference curve?

A:

Q: What is the theory of liquidity preference?

A: Liquidity Preference theory said that investors should expect a more/higher interest rate or premium...

Q: In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a q...

A: "In a perfectly competitive market if the market price is below the minimum of the average variable ...

Q: In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15 millio...

A: In 2014, GDP = $12 million The price of the market basket =$40. In 2020,GDP = $15 million  The price...

Q: Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment...

A: Let's calculate future worth one by one and see which alternative is best:- Future worth of D:- FW(D...

Q: Kesearcn LaD NIKing Loage Totai Action (Dollars) (Dollars) (Dollars) No Recycling 2,000 1,000 Recycl...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: 12. Consider starting from full-employment equilibrium in our Aggregate Demand and Supply model (wit...

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Q: d. Suppose that changes in the bank regulations expand the availability of credit cards so that peop...

A: Demand for money refers to the desire for holding financial assets such as cash, banks deposits, etc...

Q: Which of the following statements are true? (i) When demand is price elastic, total revenue moves in...

A: (i) When demand is price elastic, total revenue moves in the opposite direction of the price change....