The Market for Good X is perfectly competitive, with market supply and own-price demand curves given as 9, = -25000 + 3000p 9a = 135000 – 5000p a. Determine the equilibrium price and quantity in the market for good x. (Note: You are not anlayzing an individual firm here. You are analyzing the entire market). Suppose the individual firm's average total costs are dfined by TC =9³ – 3q² + 28q + 2 b. What is the firm's demand curve (don't give me back the industry demand curve. The firm's demand curve is what I want.) c. find the profit maximizing level of output for the firm (I've given the marginal cost curve below). MC = q² – 6q + 28 d. If this firm is making a profit (loss) how much is the profit (loss)?
Q: 3. A new medical study indicates that eating blueberries helps prevent cancer. If the demand for blu...
A: Meaning of Consumer Surplus: The term consumer surplus refers to the situation under which the con...
Q: 2. Show graphically that tax cuts are a lesS effective fiscal policy tool the greater the sensitivit...
A: In an economy, when investment is highly sensitive to the interest rate, it is the situation when ID...
Q: The partial data in the table below are for the economy of Arinaka. Planned investment, government s...
A:
Q: j) Assume that 1000 cars are going from point A to B in the following traffic network. What is the N...
A: Nash Equilibrium is a game theory concept that identifies the best solution in a non-cooperative gam...
Q: 3. Two vendors simultaneously choose a location. Then the customers choose the closest vendor to buy...
A: Given information There are 2 vendors on straight line 5 location exists for vendors to set up Each ...
Q: 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not ne...
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...
Q: Use the graph to calculate consumer surplus when the market is at equilibrium. Price $40 30 20 15 10...
A: Here, when analyzing the given graph, it can be seen that equilibrium price is $20 and equilibrium q...
Q: Archer Daniels Midland (ADM) and Cargill are the biggest makers of high-fructose corn syrup (HFCS), ...
A:
Q: What is a real life example of what is happening at the 'cross' of the 'X', or where the labor deman...
A: The market supply of labor is the number of workers of a particular type and skill level who are wil...
Q: On a small island two farmers, Inger and Johannes, are the only suppliers of freshly dug potatoes fo...
A: Profit maximization is a process business firms undergo to ensure the best output and price levels a...
Q: According to the classical economists, those who are not working A) are unable to find a job at the...
A: The Classical Economist assumes that the economy is always at full employment and those who are not ...
Q: An investment resulted in the following cash flow. What is the rate of return? Year Cash Flow -$700 ...
A: There is an initial investment is 700 The cash inflow in year 1 is $100 The cash inflow in year 2 is...
Q: Utilitarianism definition
A: It is one of the morality theory. It proposes actions that cause happiness. It opposes actions tha...
Q: The multiplier for the economy in the above diagram: a. is 3 b. is 4.8 C. is 4 d is 5.2
A: The measure that depicts the final value of goods and services being produced in a year during an ec...
Q: Using the graph of a production possibilities frontier (PPF) below, please answer the questions that...
A: The production possibility frontier (PPF) is a business analysis curve that represents the conceivab...
Q: How would you best characterize which class of value a polar bear in the Arctic might represent to m...
A: This module will cover the following topics: 1) monetary valuations of environmental goods, 2) The s...
Q: 1. Discuss the following theories of capital structure. (i). Trade-off theory (ii). Pecking order th...
A: Structure of Capital The capital structure decision is made up of a mix of debt and equity, and it i...
Q: In a competitive market, the price of a product A. is determined by buyers, and the quantity of the ...
A: Competitive markets are present in free market economies. Here, forces of demand and supply are allo...
Q: Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for p...
A: The equilibrium price of good quality car PGood =$20,000 The equilibrium price of poor quality car P...
Q: The above figure shows the supply curves in four different markets. If each of the markets has an id...
A: Deadweight loss refers to the decline in the total surplus that happened due to market distortion. T...
Q: do unregulated monopolists always make postitive economic profits? use a graph to show that a monopo...
A: Unregulated monopolist:- A monopoly is a company which is the single supplier of its commodity and h...
Q: In the figure below, SS is the original supply curve of a firm. If an ad valorem subsidy is granted ...
A: Ad valorem subsidy is expressed as a fixed percentage of the value of the quantity. It is different ...
Q: . Productivity of land can be raised by
A: To find : What can be raised by productivity of land.
Q: s in the tradeoff zone. C B D A E
A: Production Possibility Frontier : The PPF or the production possibility frontier is the curve which ...
Q: The graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferre...
A: Terms of Trade = (Price of Exports)/(Price of Imports)*100 We can clearly see from the graph that Ch...
Q: The demand and supply schedule for a product is shown below. The government sets a maximum price of ...
A: The given table provide information about quantity demanded and quantity supplied at a different pri...
Q: • Which of the following is not typically an element in the structural change that accompanies devel...
A: The answer is - d. All of the above changes accompany development.
Q: Movement along the aggregate demand curve Shift of the aggregate demand curve Answer Bank a rise in ...
A: Aggregate demand refers to the macro-economic term that is used to describe the total demand for dom...
Q: union's indifference curves have negative slope, but this text folows the convention of naming MRS a...
A: The demand curve for labor shows the amount of labor businesses wish to employ at some random compen...
Q: Respond succinctly and precisely to each of the following scenarios. Hint: these are beginning with ...
A: Here, it is given that Brazil's currency appreciates against European Union's currency, that is euro...
Q: . Consider the following sequential game. Player 1 A B Player 2 Player 1 a Player 2, (4) () i. Deter...
A: Given game is sequential game that means by observing the action of player 1 player 2 plays the stra...
Q: Which of the following statements is/are correct? I. The supply-of-loanable-funds schedule (also cal...
A: The Demand curve for Loanable funds, DLDL is a downward sloping curve. It shows an inverse relations...
Q: Now consider the economy in the steady state: The steady state is defined as a point in the long run...
A: A system or process is considered to be in a steady state in systems theory if the factors that desc...
Q: The difference between rent control and rent stabilization in New York is . . . (a) Rent control wa...
A: b) Rent stabilization insures that rents neither rise nor fall too fast, whereas rent control only c...
Q: eBook A father is now planning a savings program to put his daughter through college. She is 13, pla...
A: Average rate of inflation is 5% annually. So if she enrolls in a 4 year program after 5 years, total...
Q: Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for p...
A: If the seller sells a bad quality car then the net gain is equal to the price received for bad quali...
Q: 4. Standard of living of a country can be raised if it increases A. O Labour force B. O Production C...
A: The standard of living refers to the quality and quantity of products and services available to the ...
Q: Instruction: Graph the given table below and explain how the Law of Demand and law of supply works. ...
A: Here, the given tables provide information about the quantity demanded and quantity supplied at diff...
Q: The goal of an economist who formulates new theories is to Select one: a.provide an interesting fram...
A: Economists tend to conduct the researches, monitor trends of economy ,collect and analyze data and t...
Q: LOOK at the figure Producer Surplus. When the price falis from $45 to $35, producer surplus för a to...
A: A producer will sell their product when the market price is greater than or equal to the minimum acc...
Q: model with a single-time-period lag on onsumption function, as described below, is initially in equi...
A: The time path for the GDP is calculated through the complementary and particular solution. Yt = Yc +...
Q: Suppose the following information on Nominal GDP and Average Prices. Use 2011 as your base year. Com...
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation u...
Q: Analyze the following market changes using the supply-demand model. For each letter, copy the graph ...
A: The shift in demand and supply causes changes in equilibrium price and equilibrium quantity.
Q: Which of the following is the best example of "what goods and services should be produced?" the prod...
A: We know whether it is developed or underdeveloped countries each has to face the central problem whi...
Q: Suppose an individual in the Grossman model is trying to decide what to have for dinner. His options...
A: 1) The given Utillity function is: U = 3Z+H The utility for every meal For Steak and eggs U = 3(7) -...
Q: 3. This question is about worker-employee matching. a) Explain and represent graphically why if ther...
A: Introduction: Equilibrium is that the situation during which market provide and demand are balanced,...
Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flo...
A: Given:- Cash flow time 5 = $ 5000 Annual growth in cash flow = 7% Number in cash flows = 9 Future ...
Q: B. Perfectly elastic demand; buyers pay an excise tax Demand: P = 12 Supply: P = 4 + ½Q Tax per unit...
A: If an excise tax of $4 is imposed the consumers will pay $4 more than the producers. So, Pb=Ps+4, w...
Q: 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not ne...
A: The gross domestic product (GDP) is a measure of a country's economic output. Countries with higher ...
Q: tion c
A: The profit maximizing level of output for a monopolist is at point where MR is equal to MC Given MR...
option d
Step by step
Solved in 4 steps
- Suppose that all firms in a constant-cost industry have the following long-run cost curve:c(q) = 4q2 + 100q + 100The demand in this market is given by QD = 1280 - 2p. Suppose the number of firms in the market is restricted to 80a. Derive the supply curve with this restriction. Find the market equilibrium price and quantity with the restriction.b. If firms are allowed to buy and sell these permits in an open market, what will be the rental price of permits? Will firm’s that own permits make profit? Briefly explain.c. How much deadweight loss is generated by the permit system? Provide a graph showing the region of this deadweight loss.d. Suppose the government abandons the permit system and simply imposes a fixed fee on firms in the market. If the fee is set equal to the permit price you found in c., what will be the equilibrium price, quantity, number of firms and deadweight loss?Signaling. There are two firms, A and B. There are two time periods, 1 and2. There is one commodity, that can be produced by both firms, at linear cost. So,if firm i has marginal cost i, then the cost of producing q units of the commodity is ciq. The inverse demand for the commodity, at any given moment, is 100 − 4Q,where Q is the aggregate supply at that moment.In period 1, firm A is alone in the market. Firm A’s marginal cost is determinedby Nature, either it is 10 or it is 2, each with probability 1/2. A knows it’s cost.Firm A produces some quantity in period 1 and firm B observes this. Betweenperiods 1 and 2, firm B decides to enter the market or not. After making thisdecision, B is told firm A’s cost. It is too late at this point for B to change itsaction.In period 2, if B is in the market, then A and B compete on quantity.(1) In words, what are the steps to solving this problem?(2) There are two possible quantity-competition games that happen in this game.Solve them both.(3) Now…Question 1a. Estimate the equilibrium price and quantity of the market whose demand and supply function are pd=(q+)^2+100 and ps=(q+2)^2 respectively. 1b. If the region shaded grey in the diagram above represents a set, derive the system of inequalities that define that region. 2. The profit function, in dollars for a product given by p(x)= -x^3 + 76x^2 - 380x - 2800 Where x is the number of units produced and sold. If the break-even point occurs when 10 units are produced and sold a. Find the quadratic factor of P(x) b. Find finds the number of units other than 10 that give break-even for the product.
- estion 1:There are 5000 identical individual buyers in the market for commodity X, and the demand function for commodity X is given by given by Qdx = 24 -4Px. There are 500 identical producers of commodity X, each with a Supply function given by Qsx = 40Pxa) Find the market demand function b) Find the market supply function for commodity X keeping maximum price 8c) Mathematically find the equilibrium price and the equilibrium quantity. d) Make on (the table given below) market demand schedule and Market Supply Schedule, keeping maximum price 8e) Plot, on one set of axes, the market demand curve and the market supply curve for commodity X and show the equilibrium point.Market Demand SchedulePrice QuantityMarket Supply SchedulePrice QuantityAssume the demand function for a product is given by QD = 20,000 – 10P + 0.4I, where P = price of the product, and I = average income of consumers. Also, assume the supply function of the product is given by QS = 30P. If the market for the product is perfectly competitive, and the average income of consumers is $10,000, what are the equilibrium price and quantity in this market?Note that parts f) and g) do not depend on the other parts and could be completed before or after parts a) to e). Two different boutique wineries supply two towns: town A and town B. Winery 1 supplies town A and Winery 2 supplies town B. Both wineries have a constant marginal cost c = 20. Assume that consumers are indifferent between the wines from different wineries and that they purchase wine only in the town they live. Demand for wine in town A is given by pA=40−12qA; the demand for wine in town B is given by pB=70−qB. f) For parts f) & g) only, please assume that the total demand for wine (from both towns) is given by p = 125 - Q. Assume now that due to the new government regulation, the companies broke up and went back to operating as Wineries 1 and 2. Each winery can now supply both towns and still has a marginal cost of 20. If Wineries 1 and 2 decide how much wine to produce simultaneously, what is the equilibrium price, quantity sold and profit of each winery? g) For…
- In the free-market equilibrium of a perfectly competitive market, the price of the good is 90 dollars and the elasticity of demand and the elasticity of supply values are respectively Ed* = -6.6 and Es* = 4.1 Suppose the government imposes a per-unit tax equal to 10.4 payable by consumers. Calculate the estimate of the price firms charge consumers in the tax equilibrium using the elasticity values provided above. Then enter that price value below.Consider in perfectly competitive market the following demand and supply equations for sugar:Qd =1000-1000p where Q d is quantity demanded and Qs is quantity supplied. Qs=800+ 1000p Where P is the price of sugar per pound and Q is thousands of pounds of sugar. (a) Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. What would be the relationship between the quantity supplied and quantity demand for sugar?(b) Identify market problem specifically at prices 0.2 per pound and what will be scientific recommendation you suggest to solve the identified market problem?Consider the perfectly competitive market for an agricultural commodity. The direct market demand curve is Q(P) = 720 − 15P and the direct market supply curve is Q (P) = 15P. The market equilibrium quantity is 360 units at a price of $24. Suppose the government imposes a price floor at P = $36.00 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and producers face under this policy? The new equilibrium quantity is 540 units. Consumers pay $12 and the producers receive $36. Find the: a. Change in consumer surplus and producer surplus. b. Government Expenditure. c. Change in social surplus.
- The demand and supply functions a firm producing a certain product are given respectively by: and , where p is the price per unit and quantities are in millions per year. How much consumer surplus (CS1) do consumers receive when price is P1 = $60?1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.Consider a competitive market for the paper-making industry. The demand curve for paper is represented by the equation P = 120 – 2Q, while supply is represented by the equation P = 60 + Q, where Q is the quantity of paper (measured in tons) and P is the price of paper per ton for each paper mill (measured in dollars). Suppose the industry pollutes the environment by discharging waste chemicals that present a health risk to the public. a) What is the equilibrium price and quantity in the competitive market? b) Suppose the government determines that the social cost of unregulated paper-making activity is $30 per ton of paper. The government decides to internalise this activity through imposing the appropriate per unit tax on paper mills. What would be the socially optimal quantity of paper, and what would be the price for each paper mill?