Q: 5) Little Kona is a small coffee company that is considering entering a market dominated by Big…
A: The Nash equilibrium refers to the best strategy in response to the strategy of the rival firm. The…
Q: Assume that the demand for a standard (i.e. non-luxury seat) ticket to a Cleveland Indians game is…
A: Marginal cot refers to the additional cost incurred by a firm for producing one additional unit of…
Q: Which of the following is a cash outflow? Current year…
A: Cash inflow means that the money going into an entity which could be from investments, sales, or…
Q: It is proposed to reconstruct a 10-mile 4-lane highway with flexible pavements in Year 2021. The…
A: Highway:- 10 miles and 4 lane Initial Cost = 2,00,000 per lane mile n = 25 Annual Maintenance Cost =…
Q: Suppose a monopoly team faces a demand for a sporting event of Q =100-p Given that the associated MR…
A: A market form where there exists only one seller or provider of a good or service, and no close…
Q: ssume the correlation of returns between KO and the market portfolio equals 0.80, the standard…
A: Beta (β) measures the asset's volatility in relation to the market. The beta value of the market is…
Q: Complete the right half of the following equation to reflect the labor force participation rate…
A: The measure that depicts percentage of the civilian non-institutional population of being sixteen…
Q: 30 L* Output 0 10 20 30 40 50 60 70 The price of labour is $30 per unit and the price of capital is…
A: The production cost of the firm’s output under the circumstances of the long run will be termed as…
Q: Suppose the government wishes to eliminate an inflationary gap of $100 billion and the MPC is 0.50.…
A: MPC is the marginal propensity to consume. Spending multiplier is given by the following formula :-…
Q: Using the Consumer Price Index (CPI) detailed in the table below, Year 1990 1991 1992 1993 1994 1995…
A: Inflation is defined as a rise in the cost of consumer goods and services. Rising prices are…
Q: Constructing a new road at a cost of $ 670,000 will result in a saving of travel time for users…
A: The Rate of Return (ROR), which is calculated as a percentage of the initial investment, is a metric…
Q: Based on the production possibility c Health Care 700 Production Possibility Frontier A 6000 500 400…
A: Production possibilities frontier shows the combinations of two goods that can be produced with the…
Q: In an economy of a specific country, the economy's consumption schedule is given in the table below.…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Cartoon Analysis: What message does this cartoon deliver about the struggle of identifying needs…
A: Needs and wants are two different categories of goods and services that we consume in our daily…
Q: Calculate the present value of a sequence of payments of $1000 made at the beginning of every four…
A: Present value (PV) is the current value of a future payment or series of payments, discounted at a…
Q: Assume $60,000 is going to be invested in each of the following assets, using table 12-11 and table…
A: Answer:- (A). Assets:- Office furniture Category:- 7 - Year MARCS Cost of Asset(A) :-…
Q: The Energy Information Administration's forecast that world crude oil demand will likely outpace…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: When a market is in equilibrium, the economic problem has been solved. Comment on the truth or…
A: Market equilibrium refers to the point at which the quantity demand is equal to the quantity…
Q: n Avenger City, there are various fried chicken consumers withFea es like Captain America, Thor and…
A: Note: “Since you have posted multiple questions with multiple sub-parts, we will provide the…
Q: (1.e) Suppose litigation is costly (and the underlying game is as specified originally, before…
A: To make the contract effective, the payoff with not invest must not exceed of investing
Q: Quantity Demanded (in kgs) 100 90 80 70 60 50 40 1. Plot and graph the data on the supply curve. P P…
A: ***Since the student has asked to solve some specific parts of the question, hence, the expert is…
Q: Explain the Bertrand paradox. How does it inform our explanations of market power in industries with…
A: Bertrand Competition refers to the competition where two firms compete on the basis of the price. It…
Q: Microsoft is a company that is regarded as having a great corporate culture, why?. Find out why and…
A: Corporate culture refers to the shared values, beliefs, and practices that shape the behavior and…
Q: If the equilibrium price for tickets to a Carrie Underwood concert is $120 each, and she sells them…
A: Demand-supply equilibrium: An individual’s willingness to pay for each unit of the quantity he or…
Q: John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years…
A: Withdrawal Ability = 80,000 per year n = 29 years (Because it is written in the beginning of 30…
Q: Can economic profit ever exceed accounting profit? Explain.
A: Profit is the financial gain that a business or an individual earns after deducting all expenses…
Q: Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these…
A: Real GDP per person is calculated by dividing the real GDP by population. i.e., Real GDP per person…
Q: Your rich uncle left you $10,000 in his will, but with a requirement that you invest the money into…
A: An IRA, or Individual Retirement Account, is a type of investment account that individuals can use…
Q: Find the value of Pand F in the cash flow diagram. Use uniform series capital recovery factor &…
A: Uniform series capital recovery factor : (P/A , i% , n ) Where ,i = interest rate , n = number of…
Q: In real life perfect competitive market does not exist. However there are some markets that are just…
A: Perfect competition is a theoretical market structure in which there are many small firms producing…
Q: hree mutually exclusive alternatives are being considered. A B C Initial Investment $50,000 $22,000…
A: Given Alternative A B C Fixed cost -50000 -22000 -15000 Annual income 5093 2077 1643 The…
Q: The price of crude oil has been increasing. The price of a good rises in two cases, when demand…
A: Demand-supply equilibrium: Demand is the aggregate demanded quantity made by all the market…
Q: Consider an economy with two goods, consumption c and leisure I, and a representative consumer. The…
A: Considering an economy with two goods consumption and leisure A consumer's daily leisure hours l =…
Q: What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two…
A: Behavioral economics is that branch of economics that deals with the psychological and emotional…
Q: A 6 times-interest-earned ratio is considered acceptable. Question 11 options: 1) True 2)…
A: In economics and finance, interest earned ratio or interest coverage ratio refers to the ratio that…
Q: The percentage markup of prices over marginal cost is (P-MC)/P. For a profit maximizing monopolist,…
A: Price elasticity of demand measures the responsiveness of the quantity demanded of a good or service…
Q: Payments of Php Find the present value of the annuity due at the specified interest rate: 250 will…
A: The present value (PV) of a series measures the current value of the cash flows in the future
Q: The U.S. population has a bubble of individuals known as the baby boomers. As this group retires,…
A: Saving is the practice of reserving a portion of one's current income for use in the future. It…
Q: 10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√…
A: Profit maximization is the process by which a firm determines the level of output that will result…
Q: Stock prices, as measured by the S&P 500 index, have: declined substantially since they peaked in…
A: The stock market volatility determines how much the overall value of stock markets fluctuates up and…
Q: Do not forget to draw cash flow diagram with complete label. blem. No rounding in between the…
A: This is a problem of annuity where certain amount is paid in fixed interval of time. Debt : $…
Q: Consider a perfectly competitive market for apples. Let demand and supply be estimated by the linear…
A: Introduction The only price at which consumer and producer plans coincide is the equilibrium price,…
Q: A simple random sample of 8 employees of a corporation provided the following information. Employee…
A: Average is the ratio of sum of all age employees to the number of employees. The term "standard…
Q: Pizzeria would likely also experience diminishing returns to labor as more workers are added to work…
A: The diminishing marginal returns to labor implies means that as the firm would keep on hiring more…
Q: Source:…
A: According to the Source:…
Q: In 1983, Motorola accounted for seventy five percent of the mobile phone market. But by 2019, its…
A: A market achieves equilibrium at a point where the demand and supply curves intersect with each…
Q: Mauritius is an island nation off the coast of the African continent in the Indian Ocean. At various…
A: There are two types of economy: Closed Economy Open Economy In a closed economy, three sectors are…
Q: Physical capital is A) the factories and machinery used to produce other goods and services. B) the…
A: In business and economics, there are numerous production elements or steps that go into creating a…
Q: Are cryptocurrencies considered as money. Discuss with examples
A: Introduction A cryptocurrency is any form of money that functions online or electronically and uses…
Q: P1. Apply the approximation rules for growth rates in the following situations: a) Labor income…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
In an industry with two firms, their best responses are ? ∗ 1 = 10 ― (1/6)?2 and ? ∗ 2 = 8 ― (1/6)?1. What is the total quantity exchanged on the market?
Step by step
Solved in 3 steps
- The following graph depicts the costs incurred by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the same product. Use the graph to answer the following questions- Price/Cost per egg MC 12 ATC MR3 AVC MR2 MR1 Quantity 100 200 300 400 a)lf the market price per egg is 8tk, in order to maximize profit how many eggs does Rahim sell? b)lf the price stays at 8tk, what happens in the long run? choose from the following options. option 1: Rahim stops selling eggs. option 2 : New firms enter into the egg market option 3: all existing sellers suffer from an economic loss. c)lf the price falls down to 3tk price, which of the following option does Rahim have in short run? option1: Temporarily shutting down the business business option 2 : staying in generating no profit option 3: indifferent between staying in and going Out of the market. butQuestion 3 The inverse market demand for fax paper is given by P=100-Q. There are two firms who produce fax paper. Firm 1 has al cost of production of C₁= 15*Q₁ and firm 2 has a cost of production of C₂=20*Q₂. 1) Suppose firm 1 and firm 2 compute simultaneously in quantities. What are the Cournot quantities and prices? What are the profits of firm 1 and 2? 2) Suppose firm 1 and firm 2 compete simultaneously in prices. What are the Bertrand quantities and prices? What are the profits of firm 1 and 2? 3) Suppose that firm play a Stackelberg game. First firm 1 sets the quantity in t=1, then, knowing which quantity firm 1 has set, firm 2 chooses the quantity in t=2. What are the Stackelberg quantities and prices? What are the profits od firm 1 and 2? Compared to part a) which firm benefits and which firm loses?The following graph depicts the costs incurred by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the same product. Use the graph to answer the following questions- Price/Cost per egg MC 12 ATC 8 MR3 AVC 6. MR2 MR1 Quantity 100 200 300 400 a)At what price will Rahim try to minimize loss by selling eggs in the market? b)At what price will there be a break-even point?
- Suppose there are only two gas stations in the remote town of Nome, Alaska and they are competitors. If one of them goes out of business, what will happen to the demand curve for the remaining gas station? In addition, what do you think will happen to prices? The graph below shows a demand for gasoline, with the price of gas and the sales of gas shown below on the graph. P P1 14 22 P2 32 D2 D1 Q1 Q2 Q3 The demand curve will pivot from D1 to D2 and prices will rise as demand becomes more inelastic. The demand will shift to the left, indicating lower demand when there are fewer stations. The demand curve will not change since everyone needs gas no matter what the price. The demand curve will pivot from D2 to D1 and prices will rise as demand becomes more inelastic. 00Economics Remove flag Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is worthwhile to advertise, If all of them advertise, each will earn a profit of $5000. If none of them advertise, each will earn a profit of $8000, If only one of them advertises, the one who advertises will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their dominant strategy, what will Anna do, and how much will she earn? Select one: a. Anna will advertise and earn $5000. b. Anna will advertise and earn $6000. C. Anna will not advertise and will earn $8000, d. Anna will advertise and earn $10,000.If two businesses are selling the same good or service, who would benefit if theycooperated on pricing? Who would benefit if they competed based on pricing?
- The Internet decreases the threat that new competitors will enter the market. Select one: O True O False IS PAGEGary's Gas and Frank's Fuel are the only two providers of gasoline in their town. Below is the demand schedule for the market of gasoline. Assume that the cost of producing gasoline is zero per gallon (AC-D0, FC-0). Suppose that the two producers collude (split production and profits evenly), what are the profits of each firm? Q demanded (in gallons) 4 6 7 8. 10 Market price (in dollar) $22 $20 $18 $16 $14 $12 $10 $8 $6 $0 $70 $72 O $36 O $76 $64 3. 2. 1,Using the information from the previous question, assume that Mytown engages in free trade in the dolls markets with Yourtown, who also faces a market with monopolistic competition. Because of this we can expect that, (a) The numbers of firms operating in this market will not change. (b) At equilibrium the profit of firms will increase. (c) The quantity of types of dolls available to consumers will increase. (d) All the above answers are correct. 2.
- Isolated Island has three natural gas wells. Three firms each own one. The table gives the demand schedule for gas on this island. The marginal cost of producing gas is $6 a unit. The table gives the demand schedule for gas on this island. Price (dollars per unit) Quantity demanded (units per day) 36 0 33 3 30 6 27 9 24 12 21 15 18 18 15 21 12 24 9 27 6 30 3 33 0 36 3 tries left If the three firms form a cartel and maximize their joint profit, what will be the price of gas, and what quantity will they produce? The price of gas will be $ Type a unit, and the quantity produced will be Type units a day.The market for fidgets has only three firms, (A, B, and C), that compete in quantities. The market shares of the firms are sA = 60%, sB = 30%, and sC = 10% respectively. The demand in the market is P = 1 − Q. The marginal cost of firm A is zero. (a) Calculate the HHI in this market (in the year of your data). (b) Suppose that firm B buys firm C. (i) What type of merger would this be? (ii) According to EU rules (on HHI level and change), would this merger be concerning? (iii) According to US rules (on HHI level and change), would this merger be concerning? (c) Call the merged firm BC. Suppose that, after the merger, A and BC compete a la Cournot again and the market shares of the firms are in equilibrium sA = 60% and sBC = 40%. What must be the marginal cost firm BC? Comment on your answerTwo street vendors (Vendor Y and Vendor Z) with mobile carts produce the same good which they sell at the same price. Customers are located along a linear boardwalk with six locations (Location A through Location F), with a different number of customers in each location, given by the number beneath each letter, as pictured below: A B C D E F 3 4 6 6 8 8 So, there are 3 customers in location A, 4 in B, 6 in C, 6 in D, 8 in E and 8 in F. The vendors simultaneously choose their location, and cannot move once their choice has been made. Customers will make a purchase from whichever vendor is closest to them, and equally close customers will be split evenly between Vendor Y and Vendor Z. The vendors CAN locate in the same location (so, both could locate in location A). How many customers will Vendor Y capture in equilibrium? (Assume that it is possible to capture half a customer, if necessary).