A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal cost. True or False?

Q: ABC Company makes its policy that for every new piece of equipment purchased, the annual depreciatio...

A: Below is the given value: The annual depreciation should not be more than = 25% Salvage value = 0  

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run comp...

A: Monopoly firm produces at the intersection point of MR and MC curve.  hence, monopoly equilibrium o...

Q: Suppose that in Workaholia the total population = 180 million, the number of unemployed = 5 million,...

A: The correct answer is given in the second step.

Q: 11. Suppose an individual has a daily income of Rs. 1,500 and spends it to consume commodities X and...

A: Income of the individual = 1500 Price of X = 75 Price of Y = 50  

Q: How does climate change affect Switzerland and what is the approach for Switzerland on this issue?

A:   Switzerland's strong economy allows them to address more difficult environmental challenges. Howev...

Q: Explain the difference between equity and efficiency.

A: In a society, the aspiration towards equity helps ensure basic rights, dignity and a minimal living ...

Q: Mathematical economics: For an economy the following consumption function is given : C = 60+0.75 Y. ...

A: As given Consumption function is given as  C = 60+0.75Y  as we know at equilibrium Y = C+I

Q: As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18- whee...

A: Given the present purchase cost of truck = $60000Time = 12G = $400Annual expense = $18000Salvage val...

Q: 1. Complete the following table of various types of cost for a firm in the short run. Assume that To...

A: Formulas:- TC=TFC+TVCMC=∆TC∆QAFC=TFCQAVC=TVCQATC=TCQ

Q: A machine has a first cost of $50,000. Its market value declines by 20% annually. The operating and ...

A: * solution :- 

Q: Suppose a manager is faced with the following demand curve for a new software application in a monop...

A: Profit maximization in the monopoly market occurs at a point where MR=MC. We will calculate the inve...

Q: Ali needs to work on a project in Australia for 5 years and he needs a car. He has the choice betwee...

A: Price of car = 300,000 Salvage value is given as = 30,000  

Q: why do we need banks and financial institutions

A:

Q: Consider a simple economy whose only industry is fishing. In this industry, productivity-the amount ...

A: Here is the solution,

Q: - The following data characterises the macroeconomic conditions of a hypothetical еconотy: С - 50 + ...

A:

Q: r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,80...

A: Expected income- it is when there is uncertain of income and there is chances of occuring different ...

Q: 60 MC 40 АТС AVC 20 50 100 150 Quantity efer to the graph shown above. Assume the price is $30 What ...

A: Profit maximization is the process through which a business determines the pricing, input, and outpu...

Q: (Figure: Market Demand Curve I) The graph shows the market demand curve. Prike (S) 40 36 32- 28 24 2...

A: Simply in the given question the Bertrand competition is generally considered as a model of competit...

Q: f a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the s...

A: From the graph,  The demand curve passes through (0, 26) and (8,18) and the supply curve passes thro...

Q: Which of the following will definitely occur when there is an increase in demand for and a decrease ...

A: We know that Equilibrium is attained in the market when the market forces of demand and supply meet ...

Q: Consumer has utility function ln(c1)+beta*ln(c2), where beta=1. Interest rate i=0%. (NOTE!) Income...

A: Consumer having rational expectations optimizes its consumption by aggregating an intertemporal budg...

Q: What are 5 techniques to employ comparative advantage?

A: Production means the goods and services are produced by converting raw materials into finished goods...

Q: Given: an inverse demand equation of P = 50 - 0.5Q,  inverse supply equation of P = 0.333Q,  a. W...

A: Inverse demand function, when price changes due to change in quantity demanded. Inverse supply funct...

Q: Explain the relationship between quality and costs in your own words. How does improving quality red...

A: There is a inverse relationship between cost and quality. As the quality improve the cost of it decr...

Q: Explain one negative impact of the 2007–2009 Global Financial Crisis and ONE approach that was used ...

A: 2008 crisis was the great financial crisis  in the world where it was started from US and spreaded  ...

Q: Suppose that Lizzo's utility function U is given by U = w.53, where w is wealth. Lizzo has wealth of...

A: Disclaimer: Since you have posted a multi-part question, I am providing you with the answer to the f...

Q: Sunglasses manufacturer Oakley, Inc. produces high-end and low-end versions of their performance sun...

A: The market refers to the place where the buyers or sellers come together to do the transaction in th...

Q: Name and explain on the example of your interest one factor that caused the shift of the supply for ...

A: Introduction Supply curve in loanable market shows the behavior of savers. When interest rate are hi...

Q: Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns to...

A: Diseconomies of scale happen when an organization/business develops so huge that the expenses per un...

Q: When the Federal Reserve sells government securities on the open market, what effect does this actio...

A: Whenever the government manipulate the open market by any of its actions then this means that this w...

Q: A two-firm coal cartel that produces at a constant marginal cost of £22 faces a market inverse deman...

A: The correct answer is given in the second step.

Q: Suppose market demand for oil is Q(P)=100–0.75P where Q is billions of barrels (BBL)or oil per year ...

A: In economics, revenue maximization refers to the theoretical concept that the firms take up for sell...

Q: True or False : 1.A stronger value for dollar boosts exports and restrains imports with explanation...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Jack buys apple at 4$, firts 5 amount of orange at 5$ , and any amount above 5 amoun is charged 10$....

A: The budget set shows different combinations of the consumption bundles that are feasible for the ind...

Q: Countries with higher levels of real per capita gross domestic product (GDP) tend to have O a) longe...

A: Per capita GDP is defined as the metric under which a country's output per person is calculated by d...

Q: why economic development is important in the study of business management?

A:   Meaning of Microeconomics: The term macroeconomics refers to that situation under which the econom...

Q: A technological advancement will cause O a) the production function to shift downward. O b) the prod...

A: Production function creates a relationship between input and output of goods.    

Q: Suppose you put $500 into a bank account today. Interest is paid annually and annual interest rate i...

A: The formula to find future value from present value is, FV = PV (1 + r)n

Q: 2. Short Run Cost and Product Curves [S O TPL = Q(L) = 10L½ 200 nav - The wage (price) of labor is W...

A: (a)  Q = 10L1/2 => L1/2 = (Q / 10) => L = (Q/10)2 => L = Q2 / 100 -----------> Total pro...

Q: Discuss in detail one negative impact of the 2007–2009 Global Financial Crisis and an approach that ...

A: Great recession and the causes is complex and involve several forces. The period required to recover...

Q: Consider the 2-period household model that you have seen in the asynchronous class. Suppose the hous...

A:

Q: Give examples of preference relation that is monotone but not continuous and is representable by a u...

A: In Microeconomics and Consumer Behavior, monotonicity of any preference relation refers to the consi...

Q: Consumer has utility function In(c1)+beta"In(c2), where beta=1. Interest rate i=50%. Income y1-10 an...

A: Utility function : ln(c1) + ln(c2)      (As Beta = 1 ) y1 = 10 ,  y2 = 50  Budget Constraint in peri...

Q: A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all acco...

A: Interest rate on credit card = 1.375% Annual interest rate = 16.5% We need to calculate the effectiv...

Q: For an economy the following data is given : Consumption (C) Investment (I) Efample = 100 + 0.8 Y. =...

A: Given data is:   Hence y= 812.5

Q: Scenario 14-1 Assume a certain firm in a competitive market is producing Q- 1,000 units of output. A...

A: Profit is the different between total revenue and total cost . Profit = TR - TC   

Q: How does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?

A: Costs refers to the amount of money needed to produce goods and services by a firm. These costs may ...

Q: Answer the question on the basis of the following production possibilities data for Gamma and Sigma....

A: Given: Gamma production possibilities:   A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 ...

Q: Which of the following is true about the real GDP? a. It is equal to nominal GDP multiplied by the G...

A: The economics as a study is based upon the basic idea that the resources which are present with the ...

Q: The demand function for a good is p = 42 – 0.01q. Round your numeric answers to one decimal place. a...

A: As given demand function is  p = 42 - 0.01q  As we know total revenue = price*quantity