Q: n insured is employed by a manufacturing company that provides group health coverage for its…
A: Insurance policy: An insurance strategy is a legitimate policy between the insurance agency (the…
Q: Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How…
A: When you earn interest on the principal amount of an investment (or loan), it is added back to the…
Q: A firm faces the demand curve: P = 4,968-14Q. What is the firm's revenue maximizing price? Enter as…
A: Revenue (R) = P * Q For finding out the firm's revenue maximizing price we will put ∂R/∂Q equal to…
Q: a. What effect on Monetary Base when Foreign Central Banks increase account at the Fed?
A: The amount of currency in circulation in the economy is referred to as the monetary basis. It is…
Q: he Australian GDP Unprecedented floods impacted the Australian economy in 2022. After defining…
A: Gross domestic income refers to the summation of all value of goods and services produced during the…
Q: Draw a labour market diagram that represents the supply and demand of labour and explain why one of…
A: Wage rate is determined in labour market by market forces demand for labour and supply of it . When…
Q: "Half-freedom" in New Netherland could be earned only by: a. enslaved WIC employees Ob. Indigenous…
A: When talking about policies and programs implemented by the government, those are based on specfiic…
Q: considering purchasing equipment that will reduce costs by $40,000. The equipment costs $300,000 and…
A: Present worth technique is one of a valuation method used in capital budgeting. It is computed by…
Q: The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of…
A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…
Q: Give a discussion from the economies of scale perspective on the statement “trade need not be the…
A: Economies of scale refers to the decreasing average cost with increasing output unit that means when…
Q: JO TVC 0 65 105 135 167 a. 203 244 293 d. 55 355 432 527 3. Draw the short-run MC, AVC, and AC…
A: TC = TFC + TVC AVC = TVC/Q ATC = TC/Q MC = Change in TC / Change in Q
Q: 2. Table: The following table shows the private value, private cost, and social value for a market…
A: The level of output that mirrors every one of the expenses and advantages related with an exchange…
Q: The most important determinant of a country's standard of living is A.) Labor supply B.)…
A: Standard of living refers to the accessibility of quality goods and services to the people living in…
Q: Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56…
A: Budget line shows different combinations of two good that can be bought with the given level of…
Q: the early nineteenth century. 1.8 1.4 Wages relative to the cost of capital 5 0.9 England France 0…
A: Isocost lines denote the different combinations of the inputs that can be used to produce different…
Q: If firms were controlled by workers, would they likely hire more or fewer workers? Why?
A: Introduction The topic is related to wages of the workers in firm or a company.
Q: 2. Find the future worth of all payments. i= 10%. Also find the equivalent annual payments. End of…
A: Given The given cash flow can be written as: End of year- Payment 1 5000 2 5000+1000 3…
Q: List the following commodities in order of income elasticity, i.e. in order of their responsiveness…
A: Income elasticity refers to the process through which the demand of a good changes when its income…
Q: Hand written plz 4. Suppose that a firm has a total cost function C(Q) 5000-40Q2 +4Q³. Find AVC, MC,…
A: We have given cost which is a function of output (Q).
Q: Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive…
A: Monopolistic competition is the market where seller sale differentiated products and they have…
Q: 1.B Suppose the capital share in New Zealand is a = 3/5. Mark ALL of the CORRECT statements. For…
A: α=35
Q: 1. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000,…
A: Here, given information is, Monthly Fixed cost: $25,000 Variable cost per pound: $0.15 Selling…
Q: If a country closes off to trade and prices remain unchanged, what does that mean? A. Autarky…
A: When talking about autarky price, it is the price of goods and services of a country when it reaches…
Q: Accumulate ₱53,960 at 12.6% compounded semi-annually for 5 years and 6 months.
A: Amount is compounded semi-annually, rate of interest per period is half of annual interest rate.
Q: If a country closes off to trade and prices remain unchanged, what does that mean?
A: A closed economy refers to one that does not trade with other countries. As a result, the closed…
Q: Explain how to figure out the number of tubes each company would need to manufacture and sell to…
A: The term "manufacturing" basically refers to the process of transforming raw materials or component…
Q: Assume that demand and supply are a simple line. If at the different prices, quantity of demand and…
A: Supply and demand is the core component of the economy , and the price of any goods and services…
Q: 1. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000,…
A: Here, it is given that Evergreen fertilizer company has monthly fixed cost of $25,000, per pound…
Q: Which of the following is NOT true about discount rate and statutory reserve requirement? O Both are…
A: The money supply is the aggregate sum of money, money, coins, and balances in ledgers — available…
Q: Consider two points on the PPF point A, at which there are 10 apples and 20 pears, and point B, at…
A: The PPF is curved but rather than it is a straight line just because not all resources stand equally…
Q: High-powered money consists of O demand deposit and currency. O paper money and coins. O deposit…
A: High Powered Money is also called the monetary base of the country. So it should include everything…
Q: Question 1 Please help awnser the following question I have attached pictures of the a small…
A: According to the uncovered interest rate parity (UIP) theory, the difference in interest rates…
Q: Theoretically, price is determined by the forces of market demand and supply. However, is it really…
A: Imperfect data alludes to the circumstance where purchasers as well as merchants don't have all of…
Q: Governments generally want people to get immunised against highly contagious viruses such as…
A: When the outcome of an economic transaction is not completely efficient.All the costs and benefits…
Q: Economic profit is: total revenue minus explicit costs. total revenue minus explicit and implicit…
A:
Q: the Reserve Bank increases the quantity of monetary base, then: the cash rate falls —…
A: Reserve bank is the central bank of the country that controls money supply.
Q: Graph and explain the causes and effects of international labour mobility.
A:
Q: Which factor of production is almost never included in a firm's fixed costs? Land Labor Capital All…
A: Land, labor, and capital are considered factors of production.
Q: Suppose the economy enters a recession. What prediction does the supply and demand model of bonds…
A: During a recession, the economy battles, individuals lose work, organizations make less deals and…
Q: Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost 0 dozen p
A: Fixed Cost: In a firm, there are two types of costs exists that is a fixed cost and variable cost.…
Q: ou are given the following information for a country: population of working age 6 million; labour…
A: Labor force = Employed + Unemployed Unemployment rate = (Unemployed / Labor force)*100 Employment…
Q: The figure below shows the market for the new Guns and Butter album, "Live at Saskatoon." 0 Market…
A: Surplus arises when the supply of a commodity is greater than its demand and this situation arises…
Q: A country reported nominal GDP of $200 billion in 2006 and $180 billion in 2005; it reported a GDP…
A: the GDP deflator measures the changes in the GDP that results from changes in the price level.…
Q: When a cash deposit is made to a current account in a commercial bank, money supply will decrease.…
A: Reserves are the entire sum of money stored with commercial banks. A check-able deposit is an…
Q: What are the Crisis in the Tourism and Hospitality Industry to date. How it affects both industries,…
A: The crisis is a term that is used to define difficulties and challenges that might affect an…
Q: A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF)…
A: "Production possibility frontier or PPF represents the different combinations of the two goods that…
Q: Determine the effects of an increase in the separation rate, s, on the reservation wage and on the…
A: The percentage of workers that depart the organization during their reporting period is referred to…
Q: you calculate the marginal cost per dozen pizzas using the information on total cost. Also,…
A: The below formula can be used to find the marginal cost. Marginal Cost = Change in total costChange…
Q: In an industry there are two firms, R₁ and R₂, producing differentiated products that engage in…
A: There are two firms R1 & R2 , such that R2 is the price follower of R1 . This is because R1 sets…
Step by step
Solved in 2 steps
- Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?If public utilities are a natural monopoly, what would be the danger in deregulating them?Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years
- Many schemes for price discrintination involve somecosL For example, discount coupons take up the timeand resources of both the buyer and the seller. Thisquestion considers the implications of costly pricediscrimination. To keep things simple, let's assumethat our monopolist's production costs arc simplyproportional to output so that average total cost andmarginal cost arc constant and equal to each other.CHAPTER 15 MONOPOLY 317a. Draw the cost., demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. ln your diagram, mark the area equal to the mernopolist's prolit and call it X. Mark the area equalto consumer surplus and call it Y. Mark the areaequal to the deadweight loss and call it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist'sprofit? (Give your answer in terms of X, Y, and Z.)d. What is the change in the monopolist's prolit fromprice discrimination? What is the…Are the following questions true or false? (A). A profit‐maximizing monopolist will produce output where marginal cost is equal to price(B). Suppose we know that a monopolist is maximizing profits. The monopolist has maximizedthe difference between marginal revenue and marginal cost.(C) In perfect competition, MUX = PX is the condition that ensures that firms produce the rightthings.(D). A monopoly earns total revenue of $5000 when it sells 500 units of output and totalrevenue of $5400 when it sells 600 units of output. Thus, the marginal revenue of the600th unit is $9.(E). We call a market where there is only one buyer for a good or service a monopoly.(F). There are a few firms selling differentiated products in a monopolistically competitiveindustry.(G). When a demand curve is a downward sloping straight line, the slope of the marginalrevenue curve is twice as steep as the demand curve.(H). The monopolistʹs profit-maximizing price will be above marginal cost, because at the…Assume that the demand for electric cars is p = 100-q (where q is the quantity and p is the price), and that an innovation can reduce the constant marginal cost of production from 70 to 60. What is the definition of nondrastic/drastic innovation? Confirm that the innovation for electric cars is nondrastic. Show that marginalcost would have to be reduced to less than 40 for theinnovation to bedrastic. Suppose that the industry is a monopoly (not threatened by entry). Howmuch is this firm willing to pay to acquire the innovation?
- For each of the fo llowing characteristics, say whetherit descriOOs a monopoly firm, a monopolisticallycompetitive lirm, both, or neither.a. laces a downward ..sloping demand cut\'eb. has marginal revenue Jess than pricec. laces the entry ol new firms selling: similarproductsd. earns economic profit in the long: rune. equat~ marginal revenue and marginal costf. produces the socially efficient quantity of outputMany schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…A monopoly faces an inverse demand curve, p(y) = 100 − 2y, and has constant marginal costs of 20. What is its profit-maximizing level of output and price? What is the socially optimal price and output for this firm? (Perfectly competitive solution) What is the deadweight loss due to the monopolistic behavior of this firm? d. Show your work algebraically and graphically.
- Suppose the European Union (EU) is investigating a proposed merger between two of largest distillers of premium Scotch liquor. Based on estimates from the EU’s economists, these two firms have a combined market share of about two-thirds of all sales in the relevant market. The only remaining firm controls the other one-third of the market. Economists have estimated that the wholesale market price elasticity of demand for Scotch is −1.3 and the unit cost to produce and distribute the Scotch is 16.20 per liter. Using the available information, provide quantitative estimates of the pre- and post-merger prices for Scotch in the wholesale market. In your opinion, is the EU’s concern about the merger justified? Why or Why not?A social cost is applied to the monopolist market structure. Why does thisoccur? If the gains producers achieve from being a monopolist are provided toconsumers, would the social cost of the monopolist be eliminated?Consider the relationship between monopoly pricingand price elasticity of demand.a. Explain \\•hy a monopolist will never produce aquantity a t which the demand curve is inelastic.(Hint: If demand is inelastic and the firm raisesits price, what happens to total revenue and totalcosts?)b. Draw a diagram for a monopolist,. preciselylabeling the portion of the demand curve thatis inelastic. (Hint: The answer is related to themarginal-revenue curve.)c. On your diagram, show the quantity and pricethat maximize total revenue.
