Ben opened his ice cream stand and he aims to maximize profits by making 100 ice cream cones a day. Ben planned to buy two ice cream makers, but his sister happened to have an extra one and she gave it to him for free. Ben's fixed costs decrease and the market price remains constant. The short run profit maximizing level of output a day a) becomes zero b) is still 100 ice cream cones c) is more than 100 ice cream cones d) is less than 100 ice cream cones
Q: The following table is domestic supply and demand schedules for a product. Suppose that the world…
A: The domestic demand schedule depicts the domestically demanded goods at each possible price. The…
Q: Suppose you plan to increase the price for your spooky haunted house hayrides from $25 to $35. As a…
A: A measure that quantifies how sensitive the quantity (Q) demanded of a good or service is to changes…
Q: A firm uses only two inputs to produce its output. These inputs are perfect substitutes. This firm…
A: The inputs are used to produce certain outputs in a production process technologically known as the…
Q: The equilibrium price in this market is $ Price (Dollars per shirt) Sho 40 60 Complete the following…
A: Households in the market for shirts represent the demand (dd) side of the shirt and firms represent…
Q: Choose four countries. One country in North America, another country in Central America, another…
A: Gravity Model:The gravity model is an economic concept and statistical model used to predict the…
Q: 1. Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is: Q(P) = 60…
A: Elasticity of demand, often referred to as price elasticity of demand, is a measure of how…
Q: Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: What is the market supply curve? The market supply curve is OA a curve that illustrates the law of…
A: The supply curve is the curve that shows the relationship between prices and quantity supplied. The…
Q: line shows the relationship between planned aggregate expenditure and output, and line represents…
A: Aggregate expenditure is the total spending in the economy by all the economic agents in the…
Q: iven the following supply and demand functions find the equilibrium price and quantity in the…
A: The equilibrium occurs when demand and supply forces are equal. The equilibrium price and quantity…
Q: . Demand for good Q is estimated to be Q = 14 - P, where P is price. If the prices rises from P =…
A: The demand equation Part a) Initial price P1 =$3, New price P2 =$6 Part b) Initial price P2 = $20,…
Q: Using the following information, calculate the GDP at Market Price Sales…
A: Gross Domestic Product (GDP) at market price is the market value of all final goods and services…
Q: The International Monetary Fund (IMF) was created to promote trade through financial cooperation by…
A: International monetary fund helps countries during financial crises like balance of payment crisis,…
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $350…
A: The given investment plan can be represented using a cash flow diagram. The rate of return on…
Q: Many medical and hospital services in Canada are provided at zero direct cost to all Canadians and…
A: "As mentioned, solution to part b is provided."The marginal approach is adopted to signify the…
Q: Consider the following data on Prices and Quantities of oranges and VCRs. From a. - k. 3 marks each…
A: Economics is defined as the scarce resources in an economy through the production, distribution, and…
Q: The interest rate is 10%, and y = (600, 200). The total utility function is max V (C₁, C₂) = ln(c₁)…
A: Utility function:V = ln(c1) + ln(c2)where c1 is consumption in period 1; c2 is consumption in period…
Q: The figure shows the market for new homes at the end of 2022. Virtually everyone requires a…
A: Allocative efficiency is a state of the economy in which production represents consumer preferences.…
Q: Scenario: In the town of Isoville there are two grocery stores: Alfonso’s Ammenities and Bernice’s…
A: A best response function, often used in game theory, is a mathematical concept that describes the…
Q: Consider the following production functions, to be used in this week’s assignment: (A) F(L, K) =…
A: The marginal productiveness of labor (MPL) refers to the exchange in output or manufacturing ensuing…
Q: 7-12 A Compute the rate of return on the following investment. Year Cash Flow -$8000 0 1 2 3 4 5 0…
A: Rate of return (RoR) is a calculation of the gain or loss on an investment relative to the starting…
Q: QUESTION 2 Given the following economic information on the country of Artesia: Item $ million 140 60…
A: Gross Domestic Product (GDP) is a comprehensive economic metric that quantifies the total monetary…
Q: Which of the following is a normative statement? Higher expenditures on health care will…
A: The positive statements refer to those statements that are based on factual analysis and can be…
Q: Which of the following markets is oligopolistic? O corn O Hamburgers O Airline travel O Soybean
A: A market structure characterized by the dominance of a small number of firms in an industry is known…
Q: The figure shows a monopolistically competitive firm's marginal cost curve and the demand and…
A: Monopolistic competition is a market structure in which there are many competing firms that sell…
Q: 0 0 E 1.3 1.2 SE DE £ There is an excess demand of British Pounds on the market, and the Fed needs…
A: The currency and exchange rate market is an ever-changing battleground where currencies vie for…
Q: The following graph plots a supply curve (orange line) for a group of recent graduates looking to…
A: Producer surplus is the benefit a seller gets by selling its output at price higher than its minimum…
Q: Figure 8-4 The vertical distance between points A and B represents a tax in the market. 15 14 13+ 12…
A: A tax is usually imposed by the government in order to raise revenue to run government expenditures…
Q: Consider the market for Starbucks coffee. Suppose that the price of coffee beans (an input)…
A: Substitute goods are goods whose demand will increase when the price of the other good falls. For…
Q: explains the maximum sustainable yield (MSY).
A: In order to evaluate and comprehend the connections between biological systems (such as ecosystems,…
Q: A B C D E Production Point Mountain Bikes 0 b) straight-line; decrease 30 50 60 65 Beer 100 90 70 40…
A: The production possibility frontier shows the different combinations of two goods that can be…
Q: PPF₁ PPF₂ X A change in technology causes the production possibility frontier for this country to…
A: Production in an economy is the driving force of advancement, where the blending of goods and…
Q: The graph shows the demand curve for ice cream cones and the market price of an ice cream cone. Draw…
A: When customers pay less for a good or service than they are willing to, this is known as a consumer…
Q: The government debt is None of these answers is correct. the total accumulation of deficits in the…
A: Money that is borrowed for a certain period.
Q: When firms price discriminate they Select one: a. get additional surplus from consumers who…
A: Price Discrimination: This is a pricing strategy where a firm charges different prices to different…
Q: Consider the 3 firms below. Which firm is experiencing diminishing returns over the range of output…
A: This can be described as a concept that shows when an individual, firm, or any entity uses an…
Q: What is a common criticism of conflict theory? A. Conflict theorists focus too strongly on…
A: Conflict theory is a sociological theory that was developed by Karl Marx and further extrapolated…
Q: Refer to the figure to answer the following questions. Price level (P) OC OB. OA LRAS, LRAS2 OD. OE…
A: Macroeconomic monitoring will remain critical since it determines the economy's final expansion path…
Q: Government financial statistics do not use definitions and concepts of SNA Question 2Answer…
A: The System of National Accounts (SNA) is a statistical framework that provides a comprehensive,…
Q: M1 and M2 represent a. two measures of the national debt b. two monetary policy tools…
A: M1 and M2 are important metrics that analyze the breakdown of an economy's supply of money. They…
Q: A coincident indicator will change before a recession begins. True or False And why
A: Economic indicators are statistical metrics used to gauge the overall health of an economy.They play…
Q: Exercise 2 Juliette spends $48 each month on salt and vinegar chips (which cost $3 per bag) and Oreo…
A: The budget line represents all combinations of goods that a consumer can afford given her income and…
Q: PRICE (Dollars pe 6 4 0 MR 0 3 C 9 12 15 18 21 24 27 30 QUANTITY (Admission tickets) Pricing Policy…
A: In a monopoly, price discrimination refers to the practise of charging various prices for the same…
Q: Tariffs and quotas can potentially benefit domestic producers of protected products. Which of the…
A: Unrestricted international trading in commodities and services is done under a free trade system.…
Q: rom the graph above, complete the aggregate consumption function from the information provided. C =…
A: The aggregate consumption function is an economic relationship that shows the relationship between…
Q: Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat…
A: In perfect competition, the short-run supply curve is the rising part of the MC curve above the…
Q: Answer the questions based on the table below. The values are in millions of dollars. What is the…
A: The real GDP is calculated using the formula Real GDPConsumptionPlanned InvestmentGovernment…
Q: Calculate the GDP deflator in 1999. f. Calculate the growth rate of real GDP in 1999. g. Calculate…
A: Nominal GDP and real GDP both quantify the total value of all goods produced in a country in a year.…
Q: Draw the Long-Run Cost Curve. Consider the long-run production of shirts. The cost of the…
A: The Long-Run Average Cost (LRAC) is an idea in economics and microeconomics that represents the AC…
Q: Consider the demand for labor in a perfectly competitive industry. all other things held constant,…
A: In a perfectly competitive labor market, all firms are wage earners, meaning that they cannot…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Souvlaki Taverna is one of many restaurants in Athens, Greece which sell Souvlaki kebabs. All restaurants make the dish slightly differently. Use the following graph showing the demand (D), marginal revenue (MR), average variable cost (AVC), average total cost (ATC) and marginal cost (MC) curves of Souvlaki Taverna to answer the questions below. (a). The goal of Souvlaki Taverna is to maximize its profit. How many Souvlaki kebabs per day should it make? What price per kebab (in euros) should it charge? If Souvlaki Taverna maximizes its profit, how much is its total revenue? What about its total costs? What is its daily profit? What would the profit-maximizing output level of this business be if it operated in a perfectly competitive market instead? What price per kebab would it charge? Does the economic outcome in part (a) imply allocative efficiency? Why or why not? Does the economic outcome in part (a) imply productive efficiency? Why or why not?The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on this figure, which of the following statements are correct? 8,000 Price, Marginal cost ($) 0 E Quantity of cars, Q At A, the firm makes positive profits. The firm makes the same profit at B and D. O Profit margin is the same at B and D. O The slope of the isoprofit is zero at D. MC Isoprofit A Isoprofit B AC 100The graph illustrates the demand for Blue Sky surf boards and the firm's marginal revenue. On the graph, draw the marginal cost curve if the firm produces 150 surf boards a week. Label it. Draw a point at the intersection of the MC and MR curves. Draw a point to show the price of a Blue Sky surf board when the firm produces 150 surf boards a week. Draw an arrow to show the firm's markup. Label it. >>> Draw only the objects specified in the question. 750- 675- 600- 525- 450- 375- 300- 225- 150- Ģ 75- 0- 0 Price and cost (dollars per surf board) 50 100 150 Quantity (surf boards per week) Select Point 3-point Curve Double Arrow D MR 200 250
- Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs are as follows: Output per Day (Q) 0 1 2 3 5 6 7 8 9 Total Cost (TC) $10.00 $20.50 $24.50 $28.50 $34.00 $43.00 $55.50 $72.00 $93.00 $119.00 1) Make a table with Quantity (Q), Total Cost (TC), Fixed Cost (FC). Variable Cost (VC), Average Total Cost (ATC), Average Variable Cost (AVC), Marginal Cost (MC), and Marginal Revenue (MR) on it (using the Long-Run Equilibrium Price). 2) To maximize profits, how many basketballs will Andy produce? Identity the profit maximizing Quantity (Q*). Price (P*), and Profit (¹).QUESTION 10 Tony sells pet collars at the Sunday markets. Assume the market for pet collars is perfectly competitive. Tony's profit maximising output is 34 collars. At this profit-maximising output level, Tony's average total cost is $4.20 per collar. His minimum average variable cost is $3.10 per collar. The market price is $5.40 per collar. Answer the following questions: (use a negative value if a loss). Answer in dollars, rounded to two a. Tony's economic profit or loss is decimal places (ie: to the nearest cent). b. State whether the following statement is true or false: "Tony's marginal cost is $4.20 per collar." Type T for true, or F for false c. At the current market price, should Tony shut down? Type Y for Yes, or N for Nohe table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that roduces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $2.2 2.17 2.21 25 30 2.00 35 2.45 3.55 4.00 40 2.38 45 2.56 2.85 50 5.50 55 6.00 3.14 60 8.50 3.58 Instructions: In part a, enter your answer as a whole number. In parts b, c. and d, round your answers to two decimal places. a. If the market price of children's mittens is $6.00 per pair, how many palrs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? %24 3.28 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? d. What are Smitten's weekly…
- The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current market price for bread is P*= 2.50. Which of the following statements is correct? 8 Price, P (€); cost 4 3.70 2.50 2 0 0 Select one: 20 40 60 80 100 120 140 Quantity of loaves, Q 160 180 O a. The bakery is a price setter and sets its price as 2.50. b. The bakery maximises its profits by supplying 160 loaves. O c. The bakery's profit is 200. Marginal cost curve Isoprofit curve: €200 Isoprofit curve: €80 Firm's demand curve Zero-economic- profit curve (AC curve) 200 O d. The bakery's profit decreases until the quantity is 120, and then increases. e. The marginal cost curve is the bakery's supply curve.Suppose that Tommy Hilfiger's marginal cost of a jacket is $200 and at one of the firm's shops, total fixed cost is $500 a day. The profit maximizing number of jackets sold in this shop is 30 a day. Then the shops nearby from other retailers start advertising their jackets. The Tommy Hilfiger shop decides to spend $1,000 a day advertising its jackets, and its profit maximizing number of jackets sold jumps to 60 a day. Before advertising: Suppose that the price elasticity of demand is 2. Can you compute the price of a Tommy Hilfiger jacket? And the markup? Please, compute the amount of maximal profits.a donut shop charges customers the same price. the profit maximising output is 100 at a price of 5$ per donut. marginal cost is 2$. The donut shop owner now discovers that it has two very different types of customer children and adults . It can maximise its profits by selling 30 donuts to children for a price of 4$ per donut and 70 donuts per evening to everyone else for a price of 6$ per donut. Draw a diagram showing the profit-maximising price and output a) when all customers are charged the same price and b) when children are charged a different price c)How much profit does the donut shop owner make when children are charged a different price? explain how to draw the diagrams also in detail please!
- Suppose Kevin runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Kevin's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Kevin produces. Calculate Kevin's marginal revenue and marginal cost for the first seven teddy bears he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Kevin's profit is maximized when he produces ___ teddy bears. When he does this, the marginal cost of the last teddy bear he produces is ___ , which is (greater/less) than the price Kevin receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is,…Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changed his price to $8. Why? What about a price of $5?Find the profit maximising level of output .
