why do competitive firms earn supernormal profits in the short run which then disappear in the long run

Q: Calculate the future value in five years of $5,000 received today if your investments pay* 6 percent…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first three questions for…

Q: Find DWL: demand: P = 100-2Q P = 20+2Q supply t=10 :

A: Deadweight loss (DWL) is the loss of economic efficiency that occurs when the equilibrium quantity…

Q: The table below gives the output that can be produced by a monopolist by hiring different numbers of…

A: The marginal product of labor (MPL) refers to the change in total output (goods or services) that…

Q: Answer the question on the basis of the following information about a hypothetical economy: Full -…

A: Unemployment triggers economic strain, mental health challenges, and societal turmoil. It undermines…

Q: Typed plz and asap please provide me a quality answer take care of plagiarism

A: The objective of the question is to calculate the unemployment rate based on the data provided. The…

Q: Consider the following Cournot model. The inverse demand function is given by p = 30 –Q, where Q =…

A: The objective of the question is to analyze a Cournot model of competition between two firms with…

Q: c. The government requires that auto manufacturers limit pollution to a specified threshold.…

A: Out of the given options select the best one that describes the method through which the government…

Q: The table shows the short-run production of a firm that produces and sells its product in a…

A: The process of producing services and products to meet the needs and desires of consumers is…

Q: 4. Profit maximization using total cost and total revenue curves Suppose Sharon runs a small…

A: A firm invests a specific amount of cost in the manufacturing. The producers want to recover the…

Q: The single most important element in managerial economics is the microeconomic theory of the firm.…

A: The single most important element in managerial economics is the microeconomic theory of the firm.a.…

Q: Using the graphs below, show the change in aggregate demand for each of the following scenarios. a…

A: Aggregate demand refers to the total demand for goods and services in a country or economy by…

Q: What is the mostly commonly used utility functions for the following and why: Risk Aversion Risk…

A: The objective of this question is to identify the most commonly used utility functions for three…

Q: Consider the market for surfboards in the graph with a $100 tariff per imported surfboard. If the…

A: Quota is the restriction on the goods imported into the economy. The government implements the…

Q: Note: don't use any ai bot.

A: The objective of the question is to determine Sean's threat value in the context of selling his…

Q: Jane has 11 liters of soft drinks and 10 sandwiches. Bob, on the other hand, has 9 liters of soft…

A: Edgeworth box is a representation of an economy that is closed and there are only two economic…

Q: What a 3-year economic and job  impact of a dentist office for a typical downtown area?

A: Economic impact refers to the whole effect that an organization has on the financial aspects of a…

Q: Consider three firms, A, B and C, all producing kilos of potatoes (per year). The diagrams for the…

A: Ans. ) Below is the answer to the question...Explanation:Ans. ) Given that there are three firms…

Q: A retail chain will buy 700 cordless phones if the price is $40 each and 500 if the price is $50. A…

A: Equilibrium is a fluctuating situation where market adjustment occurs. Pricing is determined by the…

Q: What are the main differences between a perfectly competitive market and a monopoly?

A: A market is a framework or system that makes it easier for buyers and sellers to exchange resources,…

Q: In a macroeconomy where textile and information technology are among the major industries, the…

A: This concept can be explained as a tool that helps in calculating the total amount of production of…

Q: Assuming that there is no government spending or trade, an economy’s GDP is the sum of domestic…

A: The aggregate demand refers to the total demand for all goods and services produced in an economy in…

Q: The concept of the circular flow of economic activity illustrates the point that all economic…

A: The circular flow in economics is the theory of all goods, services, resources, and money in an…

Q: ** Please be advsed that this is practice only from previous yeasr ***  Answers:  (a) There are no…

A: (d) There are two pure strategy Nash equilibria, one with (H,H) and another with (L,L), and one…

Q: Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for…

A: The annual cost is the cost of owning, maintaining, and operating the asset over its entire…

Q: 6. Sheila and Bruce are having a tea party. Sheila is bringing 12 ounces of tea (x) and 15 finger…

A: Utility function: This is a mathematical function that measures the preferences/welfare/satisfaction…

Q: Worksheet 5: Aggregate Supply and Aggregate Demand Name: omplete the questions below. Be sure to…

A: The equilibrium occurs where the aggregate demand and aggregate supply are equal. The change in the…

Q: 7. Effect of a tax on buyers and sellers The following graph shows the weekly market for craft beer…

A: Tax incidence refers to the effect of a newly imposed tax on people and businesses. Thus it reflects…

Q: 2010, the total population was 10 million with an adult population of 7.8 million, and real output…

A: The problem concerns an analysis of the macroeconomic environment over a five-year period in a…

Q: Q4] Compute the Gini coefficient assuming the region beneath the two respective Lorenz curve is -…

A: The concept of the Lorenz curve can be explained as the graphical representation to show the level…

Q: Your company will generate $63,000 in annual revenue each year for the next seven years from a new…

A: The company is expected to generate $63000 in annual revenue each year, The time span is 7 years.…

Q: * Please be advised this is for practice preperation only ** i just really need help on this - I…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student, below…

Q: Explain briefly how smokestack scrubbers help control industrial air pollution

A: Environmental economics delves into managing environmental quality and natural resources amidst…

Q: Briana received a 10-year subsidized student loan of $22,000 at an annual interest rate of 4.125%.…

A: The equal monthly payment is the fixed amount paid by the borrower to the lender to repay the…

Q: 6. Scarcity, opportunity cost, and marginal analysis Bob is training for a biathlon, a winter racing…

A: The opportunity cost of an activity is equal to the value of next best alternative. Opportunity cost…

Q: Suppose that a firm's production function is given by Q=KL. If capital is fixed at 1 unit in the…

A: The inputs such as capital, labour and land are used to produce and output in the market is known as…

Q: What is an example of an economic model? a. b. Opportunity costs. Positive statements. O c. O d.…

A: An economic model is a streamlined framework that economists use to study and comprehend how…

Q: The shift from D to D1 in the graph below represents a(n): Price per Can 60 O Demand Glut Copyright:…

A: The demand curve is a graphical representation of the relationship between the price of a good or…

Q: Suppose the SA government has set a limit (price ceiling) on the compensation corporate executives…

A: Price controls refer to government regulations or policies that influence the prices of goods and…

Q: 4. Assume the demand for product is: Q = 45 + (-3)*P a. Find the point elasticity at price = 8 (show…

A: Point Elasticity: This measures the percentage change in quantity demanded or supplied to the…

Q: The Fed is the most independent of all U.S. government agencies. Why? Explain. Answer the question…

A: A government refers to a framework or association that practices authority and command over a…

Q: What is the deadweight loss associated with monopoly? A. The loss in consumer surplus due to high…

A: Deadweight loss in economics refers to a loss of financial efficiency that can happen when the…

Q: You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride…

A: The marginal cost is the change in the total cost that arises when the quantity produced is…

Q: The table gives the demand and supply schedules for milkshakes. What is the equilibrium price of a…

A: The demand schedule shows the demand for a particular product in the market. On the other side, the…

Q: Price (dollars per case) $33.25 27 22 20 0 Tax 50 90 Supply with tax Supply Demand Quantity…

A: Excess tax burden is the economic cost of government taxes. The implementation of the tax falls on…

Q: . Let's study the Cournot model more generally. Assume that there are n firms, where n is…

A: Market Demand : p (Q) = a - b QCost function of each firm = mqiWhere ,  P = Price , Q = Market…

Q: In order to be considered a subgame perfect equilibrium, a set of strategies must be…

A: The question in the image is on the idea of subgame perfect equilibrium (SPE) in game theory. SPE is…

Q: For each of the regions listed in the following table, use the midpoint method to identify if the…

A: The demand curve is the graphical representation of the relationship between quantity demanded and…

Q: Why is "financial capital" unable to be categorized as an attribute of production?

A: Financial capital refers to funds or monetary assets that are used by businesses or individuals to…

Q: Consider the payoff matrix at right. O A. The pair of strategies high output -high output is the…

A: Imagine you and a friend run two companies, let's call them A and B. You both have two choices:…

Q: Product X (Xylophones) Product Y (Yarns) 50 0 Wer the following questions: Pat Pat make? 25 10 0 Pat…

A: Pat and Kerry are considering a partnership.With all Pat's resource’s, Pat can produce 50 X or 20…