Suppose & firm in a competitive market_ faces the following revenue and cost Function Th=121 and Tc: 1 - 9 38³ 20² +200 450 + 3) Determine the level of out Put which maximise Profit b, Determine the price level what is maximum profit that the Firm Ichieves ?
Q: A country is growing at 3%
A: The debt-GDP ratio is defined as the ratio of total government debt to the GDP which is determined…
Q: Refer to the following figure. The equation for this household's saving function is میرا -300 saving…
A: Savings can be defined as a proportion of income which is saved for future. It can be negative at…
Q: A balance of payments deficit is defined as the amount by which a. quantity supplied of a…
A: The objective of the question is to understand the concept of balance of payments deficit in…
Q: 12. Holding other factors constant, an unexpected increase in the rate of inflation will have no…
A: Unanticipated Inflation:The term unanticipated inflation is utilized by economists to explain a…
Q: When the price of a good is below its equilibrium value: Multiple Choice consumers will bid the…
A: The objective of the question is to understand the market dynamics when the price of a good is below…
Q: In a competitive labour market, an increase in the demand for labour might be due to an increase in…
A: The objective of the question is to identify the factors that might lead to an increase in the…
Q: Illustrate graphically what would happen in the short run and in the long run to the price level and…
A: A macroeconomic evaluation examines an economy's financial situation in depth. It detects economic…
Q: How do fiscal and monetary policies influence a nation's economy?
A: Title: Grasping the Fundamental Concepts and Differences Between Fiscal and Monetary PoliciesIn this…
Q: ssume there are two firms, firm A and B. engaged in Cournot competition. The industry demand curve…
A: The Cournot model refers to model where the firms compete on the basis of output. The output is…
Q: Diagrammatically show and explain how oil prices dropped as concerns over…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: The given figure shows the combined production function of Anna and Bob a) Draw a single,…
A: The purpose of this question is to show the production combination falls on the production…
Q: Suppose Jack lives for two periods. Period one is his working life, during which he earns income…
A: A utility function serves as a mathematical expression of an individual's preferences among a given…
Q: Marginal cost is defined as the change in total cost when: a) Total fixed cost increases b) Total…
A: Marginal cost is a major idea in financial matters and business, especially with regards to creation…
Q: Excess capacity is the: O difference between a perfectly competitive firm's and a monopoly's output.…
A: Excess capacity refers to a situation where a firm produces below its optimal output level, leading…
Q: In this module, we learned about deadweight loss and analyzed the welfare effects of a tax on a…
A: This question has been answered from a generalized economic perspective of how subsidies will impact…
Q: An article in the Wall Street Journal described an increased demand in Spain for a luxury food:…
A: The link between the amount of a product provided and its price, while maintaining other variables…
Q: Complete the following payoff matrix using the information just given. (Note: Last Chance Café and…
A: The Nash equilibrium is a constant state in game theory where no player can gain from a unilateral…
Q: I am trying to draw a demand curve with quantity on the y axis and price on the x axis - and to then…
A: The elasticity of demand is a measure of how responsive the quantity demanded of a good or service…
Q: ABC is an airline with has a monopoly over all the travel lines it covers. The monopolist faces the…
A: Since you have posted multiple questions with multiple sub-parts, we will provide the solution only…
Q: The index number representing the price level changes from 110 to 115 in 2019, and then from 115 to…
A: Since you have posted two independent questions, according tot he guidelines, only the first…
Q: How does the concept of "deflation" differ from "disinflation," and what are the potential…
A: Deflation is an economic phenomenon characterized by a sustained decrease in the general price level…
Q: business cycle theory
A: There are several schools of thought within economics, and they all have different ideas about how…
Q: Defi ne export promotion and explain why it has an outward orientation.
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: With the aid of a clearly labelled diagram illustrate; i.The least cost criterion for cost…
A: Microeconomic firm theory delves into the actions of singular companies within the market. It…
Q: Consider a competitive market in which price adjusts to excess demand or supply and firms enter and…
A: The excess demand in the market requires some adjustment among the price, which is represented…
Q: Group A - "Pro" Side: This group will argue in favor of the resolution-making the case that free…
A: Diverse economic systems define global economies, each distinguished by unique characteristics.…
Q: "Trinidad and Tobago is not only impacted by the economic consequences of COVID-19; but as an…
A: A macroeconomic evaluation provides a thorough examination of an economy's financial status. It…
Q: Introduction There are many aspects regarding the Chinese automobile industry in Egypt regarding how…
A: This introduction offers a comprehensive overview of your research on customer satisfaction with…
Q: Modeling Monopolies A consulting firm your work for has asked you to model demand for a product with…
A: The purpose of this question is to show how the quantity demanded changes over time based on the…
Q: Question: Explain the concept of "income elasticity of demand" and how it can help businesses…
A: Elasticity refers to a concept in economics that measures the responsiveness or sensitivity of one…
Q: There are three demanders of a public good. Their demands are given by: P₁ = 60-Q P₂ = 100 - Q P3=…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: (d) Assume instead that the Canadian central bank takes actions to restore the economy to…
A: Employment refers to the state of having a paid job or being engaged in gainful work, typically…
Q: Why are unplanned inventory changes the key to predicting future Why are unplanned inventory…
A: Aggregate expenditure is the macroeconomic concept. It measures the total of all the expenditures…
Q: Suppose that a firm is an imperfect competitor in the product market and a perfect competitor in the…
A: The purpose of this question is to determining the optimal combination of two variable inputs. This…
Q: 2. A firm producing hockey sticks has a production function given by q = 2√kl The price of labor is…
A: "As per the policy, first three subparts are answered. Kindly raise the question again for the…
Q: Price and cost (dollars per ton of steel) 250 200 150 100 50 2:4 4:2 2 2:2 MSC The above figure…
A: The equilibrium quantity of steel in a competitive and unregulated market is 2 tons, and the…
Q: Question Four Assume the following IS-LM model: Expenditure Sector AD = C + I + GC = 130+ (4/5) YD…
A: The objective of this question is to show the IS and LM schedules, find equilibrium levels of income…
Q: After the very high inflation years of the 1970s andearly 1980s, lenders demanded avery…
A: The market for loanable funds:Loanable funds are those funds that are borrowed at an interest rate.…
Q: If 15 workers produce 100 license plates, 16 workers produce 120 license plates, and 17 workers…
A: The marginal product of labor is the additional output gained by hiring one more labor or worker,…
Q: Explain the causes and consequences of decline of Indian handicrafts during the 19th Century.
A: Developmental economics is a branch of economics focused on the study of economic aspects of…
Q: What is the role of the fiscal multiplier in economic stimulus packages, and how does it contribute…
A: The fiscal multiplier is a basic concept in macroeconomics, especially pertinent while examining…
Q: How do price floors and price ceilings affect the allocation of resources in a market?
A: Price floors and roofs are sort of price controls constrained by state-run organizations in business…
Q: Discuss three reasons why the use of fiscal policy to stabilize the economy is more complicated than…
A: The policies implemented by the government authorities of a country to control public spending and…
Q: What will happen in the money market as a result of each of the events listed below. In each case…
A: Supply is the overall quantity of a good or service that producers are willing and capable of…
Q: Tom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs…
A: In this scenario, we need to calculate the change in Tom and Sue's net worth. Net worth is…
Q: 33.(Consider This) How was the practice of clipping coins during feudalism contributing to…
A: Since you have posted multiple independent questions, according to the guidelines, only the first…
Q: Analyze the following diagram: Price ($) 12 Chart of Demand Elasticity C O perfectly elastic. O…
A: A demand curve is a graphical representation in economics that illustrates the relationship between…
Q: 9. Taxation - An algebraic approach Suppose the supply of a good is given by the equation Qs = 240P…
A: Tax can be described because the revenue for the authorities accumulated from the income or income…
Q: How much money would have to be placed in a sinking fund each year to replace machine costing…
A: A sinking fund is a financial strategy involving regular deposits into an account to accumulate a…
Q: 21 +22= 1. There is a world stock of capital, equal to 1, to be allocated between the two countries.…
A: An objective function is a mathematical expression that defines the goal in an optimization problem.…
Step by step
Solved in 5 steps
- Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural MonoployWould you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?Consi der Hhe fallowing » The inverse femand function is givan by p= 30-@ Cournet medel. where Q = E,+ * Firm 13 marginal cost is $6lei=6). Fivm 2 uses a nem techaulagy There is no that it's marginal cost is $3 (6=3). fixed cort So The fwo fims chooce thair and Compete only Jame). Answer the follming puestions. O Derive Firm 1 amd Firm 2% vation furtions reupertivaly. o Solve Hhe Harh equilibrium ( ", q") O What is He equilibrinm level for eah firm. quenti tias simultaneculy (So it's a one- shot simultaneaus once price and what is Hhe profit Suppore there is Iim 2. Wlhat is the highert price that Firm I is willing to paj for this new o Mow let's chauge the setup from Coumet campetition to Bertrand Competitin, while maintaining all efther aJAump tins. What is He equilibium price? O Suppon the fwe finms engage in Betrand (ompetition What is the hijhut price that Fim 1 o milling for He new feihnly? * market for the teihue lagy uped by to
- The table below shows the reservation prices for passengers for American Airlines. Reservation Price Cost Tourist Business Economy 100 120 200 First 150 175 300 2) If American Airlines can identify exactly the type of customer (full information) then how should it charge for a Business traveler and what ticket should it sell him? O $300 for a First Class ticket O $200 for an Economy ticket O $175 for a First Class ticket KN$120 for an Economy ticket Won't scll Sny ncketWhat is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
- Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?Q:1 Describe the market structure and Calculate short run output, Price and profit Warner by Green Bull. Q:2 What could be the potential Long-run Price output equlibrium for Green Bull? Clearet State the conditipns and charastericts of such an equlibrium Q:3 Calculate the range which a Long-run equlibrium Price/output would ve found for Green Bull. Is there opportunity for economic profits in the Long run?
- Price nd cost d Refer to the diagram to the right which shows the cost and demand curves for a proft - maximizing tem in a perfectly competitive market. if the market price is $30 and the firm is producing output, what ia the amount of the fem's proft or lose? MC ATC A. koss of $1,080 AVC t 40.50 A36.00 OB prott of S1,440 OC. loss of $2.520 30.00 MR OD. profit of $1,300 22.00 20.00 130 180 240 QuartyTI,c market for apple pies in the city of F.ctenia is competitive and has the following demand schedule; a. Compute each producer's total cost and averagetotal cost for l to 6 pies.b. The price of a pie is now SIL How many pies aresold? How many pies docs each producer make?How many producers are there? How much profitdocs each producer earn? c. ls the situation d escribed in part (bl a long-runequilibrium? Why or why not?d. Suppose tha t in the Jong run there is free entryand exit. How much profit does each producerearn in the Jong-run equilibrium? Wha t is themarket price? How many pies docs each producermake? How many p ies are sold in the market?How many pie producers arc operating?12. Suppose a farm in a perfectly competitive marke: produces and sellsa unis bl ou qutput and hastmarginal sevenue of RO 2. Wnat would be the ! if it instead oroduced andvold 4 units of output? RO4 b. RO? s tral severue. TR = you Pud © RO 32 d. RO 64 BR Mc