When a competitive price-searcher market is in long-run equilibrium, the firms will earn economic profit. charge a price that is equal to average total cost.
Q: Solve for the following (provide solutions) 1. Equilibrium Output (Y*) 2. The consumption level…
A: The equilibrium level of income in a Keynesian cross model is determined by the intersection of 45…
Q: Based on the Ricardian equivalence, increased government borrowing by $1 will cause: The public to…
A: The Ricardo-Barro effect, commonly referred to as the Ricardian equivalence, is an economic theory…
Q: Louis is trying to decide what combination of cups and plates to buy. His budget is $12. Plates cost…
A: Utility is a term which explains and helps in the measurement of satisfaction by consumption of a…
Q: Why does higher worker productivity not necessarily mean GDP per capita will rise? O GDP per Capita…
A: Increased productivity and GDP growth rate are closely linked together but are these are not…
Q: 2. Show that the price elasticity of demand is constant for demand functions of the form P = A Q"…
A: Introduction Price Elasticity of demand When the elasticity value is greater than 1.0, this…
Q: 2. The government has decided that the free market price of cheese is too low. a. Suppose the…
A: A binding price floor happens when the public authority sets an expected cost on a decent or…
Q: What happens to the graph of a budget constraint if there is a 10% increase in prices, and wages…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: If the price elasticity of demand for gasoline is 1, that means:
A: The concept of elasticity was introduced to economics by Alfred Marshal. It refers to the change in…
Q: ssume that the government is implementing an expansionary fiscal policy and as a result has…
A: Fiscal policy refers to change in government expenditure and revenue(taxes) in order to achieve…
Q: A manufacturer of electronic devices invests $650,000 in equipment for making compact piezoelectric…
A: In order to take into account the opportunity cost of capital, a minimum acceptable rate of return…
Q: Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its…
A: Sunk cost refers to the cost which once incurred can not be recovered. The opportunity cost is…
Q: Consider the an economy described by the following equations Y = C+I+G C=Co+MPC YD I=d-e.r YD=Y-T…
A: For an economy, a macroeconomic model can be computed by putting together all these endogenous…
Q: 2. The government has decided that the free market price of cheese is too low. a. Suppose the…
A: The measure that depicts various quantities of goods and services being demanded at various levels…
Q: Use the money market to explain the interest-rate effect and it's relation to the slope of the…
A: The money market is a group of organisations. Their purpose is to make short-term lending and…
Q: If the marginal cost is above the average cost at a certain level of production and the firm decides…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: When the money market is drawn with the value of money on the vertical axis, an increase in the…
A: The money market is a financial market where institutions and dealers can trade open-ended funds and…
Q: If #12269 is the present value of #12970 due at the end of 8 months, then the annual simple discount…
A: Present Value (P) = 12269 Final Value (FV) = 12970 Time period (t) = 8 months = 8/12 year Simple…
Q: Pan De Salle, a pan de sal store owned by a La Sallian, has recorded its total costs (Php thousand)…
A: Introduction Total cost can be obtained by adding total fixed cost and total variable cost. Total…
Q: Half of the used cars for sale in a market are good and the other half are lemons. Owners of good…
A: The measure that depicts the level of output at which the demand for a good is equal to the supply…
Q: Two countries with similar geographies, cultures, and institutions are likely to have... O…
A: GDP refers to the production of goods and services during an accounting year.
Q: Why do Economists prefer competition to monopoly?
A: Perfect competition and monopoly are two different types of market structure. In competition, the…
Q: Consider a duopoly where the market demand is described by the equation: P150-Q. The marginal cost…
A: Market demand curve: P = 150 - Q Marginal Cost of each firm: MC = 60 Hence the Total Cost becomes:…
Q: linear demand curve shown below to answer the following questions. a. The point…
A: Elasticity of demand is a theory in economics that is utilized to explain the relationship between…
Q: a) GDP captures all income created in the economy, GDP also captures all expenditures made in the…
A: GDP means total market value of goods and services produced domestically.
Q: With the aid of a diagram, explain the meanings of 'pecuniary price", 'non- pecuniary price' and…
A: Pecuniary price is the price paid by the consumers that is lower than the market price. Lower price…
Q: Think of a person who likes having impact on their social networks. To do so, they always follow the…
A: Marginal returns refer to an increase in the total returns.
Q: What is Studied in Microeconomics and Macroeconomics?
A: The study of economics focuses on how the economy makes use of its finite resources. Therefore,…
Q: Let’s think about two countries, Frugal and Smart. In Frugal, people devote 50% of GDP to making new…
A: Investments are defined as assets bought or invested in with the goal of increasing wealth and…
Q: C&A Fast Food has four activities in serving a customer: greet customer, take order, process order,…
A: The bottleneck activity, which has the longest processing time out of the four, will decide the…
Q: Question 2 of 3 Fill in the blanks: The owner's plan was to generate Php9M per year in sales by…
A: Net present value = Present value of benefits - Present value of costs
Q: Firms that benefit from economies of scale: a. Performs more efficiently when output is small.…
A: Economies of scale refers to the situation where the average cost of production declines over the…
Q: What Is Classical Growth Theory?
A:
Q: 38. Negative externalities are also called a. positive externalities. b. external benefits. c.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Find the mixed strategy nash equilibrium Player 1 A B D A 1,0 1,2 0,3 2,4 B 1,2 1,4 0,1 3,2 Player 2…
A:
Q: From now on, focus on the baseline setting where both airlines face the same tradeoff between…
A: There are different types of market competition as different economies follow different types of…
Q: 5) A consumer has a fixed weekly budget (B) of $100 to spend on two goods (X and Y). Given unit…
A: “Since you have asked multiple questions, we will solve only one question for you i.e. question…
Q: In order to increase the creativity of its staff, Google invested in a highly unique headquarters…
A: Investment refers to the expenditure that is incurred with the view of earning higher returns in the…
Q: When a new park is constructed in the town of Mountainview there is an increase in both demand and…
A: Benefit-cost analysis is a sort of economic evaluation technique. In this costs and benefits of a…
Q: 8. Compute the mixed strategy Nash equilibrium of the game below: Bungle Zippy Left Right Up 2,-1 I…
A: Zippy can choose between left and right. Bungle has two actions which are Up and Down. We assume…
Q: An industry has two firms. Firm 1's cost function is c(y) = 3y + 200 and firm 2's cost function is…
A: Profit maximizing quantity is such quantity where marginal revenue equals marginal cost.
Q: Continuing from the previous questions where you are a manager of a firm is the exclusive…
A: The relationship between the quantity of a commodity that is wanted and its many determinants is…
Q: reguany and Nantucket. There are 900 potential passengers every week, each of whom is willing to pay…
A: When predicting the results of a game's decision-making interaction, Nash equilibrium serves as a…
Q: EARNINGS = bela0+ beta1 HEIGHT error where the unit of EARNINGS is dollars per year and the unit of…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The demand for toothpaste is more than the demand for diamond earrings. Oa. elastic Ob. inelastic
A: Elasticity is a measure to calculate the responsiveness of price change and demand change and their…
Q: why did greece encounter staginflation in 2007-2010
A: Stagflation, often known as economic stagnation, is characterized by slow economic growth and…
Q: Suppose that two firms produce mountain spring water and the market demand for mountain spring water…
A: Here in this situation, two firms produce mountain spring water and the market demand for mountain…
Q: Discuss it in your own understanding and then give example each of the following: Consumer and…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: One reason the aggregate demand curve is downward sloping is that a lower price level
A: Introduction Aggregate demand curve The aggregate demand curve (AD) is the sum of consumption…
Q: If investment falls by $5 billion. The marginal propensity to consume is 0.75. So Real GDP Increases…
A: GDP is significant since it provides information on the size and health of an economy. Real GDP…
Q: A family has recently installed new triple-pane windows, replaced the weather stripping on their…
A: Here, it is given that the family replaced weather stripping on their doors and installed new triple…
When a competitive
- earn economic profit.
-
charge a price that is equal to
average total cost .
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following statements applies to a purely competitive producer? a. it will not advertise its product b. in long-run equilibrium, it will earn an economic profit c. its product will have a brand name that elicits customer loyalty d. its product is slightly different from those of its competitors [ don't give chatgpt answer]Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is _____ (ii) Yann's variable profit is ____ (iii) The producer surplus is ____Suppose that each firm in a perfectly competitive market has a short-run total cost of TC = 75 + 500Q – 5Q2 + 0.5Q3, where MC = 500 – 10Q + 1.5Q2.a. Calculate the output that minimizes the firm’s AVC.b. What is the firm’s shutdown price?
- In the short run, perfectly (or purely) competitive firms will maximize their profit by producing (select all options that apply): a. a quantity where marginal revenue > marginal cost. b. the quantity where marginal revenue = marginal cost. c. the largest quantity possible, not considering costs or revenues. d. a small quantity to drive up the price. e. the quantity where price equals marginal cost. f. none of the above are correct.Ceteris paribus, if a firm in a perfectly competitive industry raises its price above market price, Group of answer choices a. total revenue for the firm will increase. b. sales will drop to zero. c.demand curves will become downward sloping. d. profit will increase.Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is .________ (ii) Yann's variable profit is .________ (iii) The producer surplus is ________ If Yann also has a fixed cost of $50, then: (iv) his total profit is ________ Assuming Yann cannot avoid the fixed cost, Yann should shut down/keep producing
- A firm that behaves in a perfectly competitive fashion has the following cost function: C(Q)=Q² +20 +25. For the current market price, the firm is producing where the total average cost is minimum. What is the market price? Select one: a. 25 b. 5 c. 12 d. 60In the short run, the best policy for a perfectly competitive firm is to Group of answer choices shut down its operation if price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its operation if price falls between average total cost and average variable cost. a and c none of the aboveConsider the firm which sells products in a perfectly competitive market has this cost structure:
- If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is: A. making a positive economic profit. B. making a zero economic profit. C. suffering an economic loss. D. None of these.Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is _____ (ii) Yann's variable profit is _____ (iii) The producer surplus is _____ (iv) If Yann also has a fixed cost of $50, then his total profit is _____ . (v) Assuming Yann cannot avoid the fixed cost, Yann should (continue to produce/shut down).In a perfectly competitive market with constant cost industry and with the market demand Q=1,800-10p, each of the identical firms operating in it has a total cost function TC(q) = 100 + 4q2 . How many firms are there in the market in long run equilibrium?
