Consider the figure below. If the industry is perfectly competitive and the market price is $15, what do we expect to happen in the long run? * D₂ P $15 O F Q Supply will shift from $1 to $2 Supply will shift from $2 to $1 O Demand will shift from D1 to D2 Demand will shift from D2 to D1 MC ATC MR-P
Q: What type of mutual fund can invest in specified derivatives and forward contracts for grains,…
A: The following methods would be used by fundamental analysts in their buy-sell decisions of…
Q: 2. Individual and market demand Suppose that Sean and Yvette are the only consumers of scented…
A: Individual demand: Demand is the desire of an individual ability and willingness to pay for a…
Q: 0 Steel 200 400 600 Steel vs Aluminum 800 Aluminum 1,200 900 600 300 0 For this production…
A: The potential value sacrificed when an individual, business, or society chooses one alternative over…
Q: Suppose that the economy moves from point A to point B and then back to point A. It then remains…
A: Inflation refers to a general increase in the prices of goods and services in an economy over time.
Q: Sally, a resident of Scandia, goes to a salon for a haircut. The haircut, which usually costs $50,…
A: When the production cost increases, the prices of goods and services increases and it is called…
Q: The foundations of economics are closely related and multiple foundations were referenced. Which…
A: Five foundations of economics include incentives, opportunity cost, trade-offs, marginal thinking,…
Q: Suppose there is a small island economy out in the South Pacific known as Volunteer Island.…
A: The measure of money supply that depicts the most liquid components of the overall money stock…
Q: Based on intellectual standards. CLARITY: Could you elaborate further on that point ? express that…
A: The objective of the question is to understand how to apply intellectual standards such as clarity,…
Q: Consider a “market” with differently substitute goods. Firms 1 and 2 produce homogeneous goods, but…
A: Firms 1 and 2 are stated to produce homogenous goods. The inverse demand function for each of these…
Q: 1. Key facts about economic fluctuations The following graph approximates business cycles in Canada…
A: The term "real GDP" describes the metric used to determine how a country's income has changed over…
Q: Suppose that Tim and Alyssa are the only consumers of pizza slices in a particular market. The…
A: Individual demand: Demand is the desire of an individual ability and willingness to pay for a…
Q: Scarcity requires people to make choices. O requires people to reduce their wants. means that wants…
A: Economic efficiency is the optimal use of resources to achieve the highest possible overall…
Q: miners is Q = 0.02 W- 200, where W is the annual wage of a coal miner and Q is the number of people…
A: Marginal expenditure of coal mines refers to the additional expenses that are incurred by the firm…
Q: Consider the following Indirect Utility Function UPM derived from Linear Expenditure System (LES):…
A: Marshallian demand function depicts the quantity demand for a commodity as the function of the own…
Q: Suppose the cost of producing product X (all in perfectly competitive markets) in 3 small countries…
A: Trade refers to the purchase and sale of goods and services by transporting them across the borders…
Q: Assertion: As consumer incomes increase, the demand for luxury travel experiences increases more…
A: The objective of the question is to understand the relationship between consumer income and the…
Q: A country decides to impose higher tariffs on imported goods to encourage domestic production. This…
A: A tariff is a duty charged on imports of goods. A country imports a large proportion of goods from…
Q: According to economic theory, state governments A) will act in the public interest. B) will be…
A: Understanding the behavior of public governments under the monetary hypothesis involves looking at…
Q: Hamburgers Which preferences does the indifference map below represent? A. Bill likes hamburgers,…
A: An indifference map effectively illustrates the various combinations of goods and services that a…
Q: Table 14.9 shows the share of income going to each quintile of the income distribution for the…
A: Lorenz curve is the graphical representation of the income distribution among different income…
Q: 2. Answer the following questions based on the graph below. Show Producer and Consumer and calculate…
A: "As there are multiple parts, the first part would be solved. To get answers to the rest of the…
Q: Consider a monopolist operating the underground in Europacity with a total cost curve given by c(x)…
A: A monopoly is a market structure in which there is a single seller who has monopoly power over the…
Q: Gas Prices and Public Transit Ridership. Consider the effect of higher gasoline prices on public…
A: Cross-price elasticity of demand measures how the quantity demanded of one good responds to a change…
Q: You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L -…
A: A budget constraint refers to the limitations or boundaries on the amount of goods and services that…
Q: Many changes are affecting the market for oil. Predict how each of the following events will affect…
A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…
Q: Outline the economic costs and benefits associated with income inequality.
A: Despite of reducing income inequality holds significant advantages for society as a whole, it…
Q: Workers who produce good X were paid w = 2 dollars per hour. They form a union and negotiate a wage…
A: The question pertains to the economic impact of labor union negotiations on goods X and Y. Following…
Q: Consider the following inverse demand function, p(Q) = 5-7Q, Q = 91 + 92, where q, denotes firm i's…
A: The inverse demand function is given as The equation for quantity is given as The total cost for…
Q: The idea that the mission of business is to produce goods and services at a profit, thus maximizing…
A: The idea that the mission of a business is to produce goods and services at a profit, thus…
Q: Kenji and Lucia are farmers. Each one owns a 12-acre plot of land. The following table shows the…
A: The production of corn and Rye for the producer Kenji and Lucia is provided below.…
Q: Explain possible errors in the following statistical representations: Aggregate income, by source…
A: The statistical pie chart is a representation of a particular data set where the data is represented…
Q: K A budget line is a line that describes limits to consumption possibilities and that depends on a…
A: A budget line is a visual representation that shows the range of goods and services a consumer can…
Q: Construct the equation of oscillation of prices from the supply and demand equations: S: p=2+4q D:…
A: Demand is the desire of an individual ability and willingness to pay for a product. The demand is…
Q: of "New Geography of Jobs" by Enrico Moretti…
A: The U.S. economy stands as a resilient and varied force, marked by creativity, business initiative,…
Q: One of the concerns about the Orderly Liquidation Authority is that it would legitimize federal…
A: The Orderly Liquidation Authority (OLA) is a regulatory mechanism implemented in the United States…
Q: 3. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not…
A: Gross domestic product is the final combination of goods and services in a country. GDP is an…
Q: Migros and CarrefourSA use prices as strategic variables. The sale price (SP) for a certain product…
A: There is seller named Migro and Carrefour .Sale Price (SP) = 55 Normal Price = 60Unit Cost = 45
Q: A firm has the following two conditional factor demands: Z₁ = q + 3w₁ -1/2w2ª a Z₂ = q + bw₁¹/2w₂c…
A: Conditional factor demand is the cost-minimizing requirement of the input that produces the target…
Q: Problem 02-04 (Algo) Answer the following questions. Instructions: Round your responses to the…
A: A summation of countries final goods and services is known as Gross domestic product. It measures…
Q: Costs # Refer to the graph above to answer this question. Which curve illustrates marginal cost? A)…
A: Marginal cost will be an extra cost incurred by an entity for producing an additional unit of…
Q: Native-born workers may not be harmed by immigration if it Multiple Choice reduces wages and labor…
A: Immigration refers back to the movement of coming to live completely overseas. It entails the…
Q: Ron invest $2000 in a savings account that gives him a simple interest rate of 6% for 3 years. A.…
A: The simple interest method ascertains the interest an individual will earn on an investment at some…
Q: Figure 16-2 This figure depicts a situation in a monopolistically competitive market. 100 PRICE 90…
A: Monopolist competition is the market structure where large numbers of firms and buyers trade the…
Q: Suppose the graph shows the market of bicycle helmets. The equilibrium price is $10. To make helmets…
A: Full economic price:The sum of the non pecuniary price and the money given to a company under a…
Q: 4. In the graph below, does the "rectangular area" represent which economic region of the company…
A: Perfectly competitive market structure is one in which there are large no of buyers and sellers. As…
Q: Problem six The table below contains information extracted from the 6th round of the Ghana Living…
A: The number of working individuals in an economy plus the number of jobless individuals actively…
Q: The figure to the right shows learning curves (LA and LB) for countries Alpha (A) and Beta (B).…
A: The learning curve shows the performance of the economy by experience over time in the economy. When…
Q: When labor unions and corporations make generous campaign contributions to politicians to get laws…
A: Labor unions, frequently essentially alluded to as "unions," are associations framed by workers or…
Q: Y Score on Economics Final Exam 100 75 50 25 A 0 5 10 Hours of Study How would you describe the…
A: The linear relationship shows a one-to-one relationship between two variables. In this case, the two…
Q: Question 5 A group of N governments consider whether or not to take action (e.g., apply new laws) on…
A: In game theory, a state known as Nash equilibrium occurs when the game approaches an ideal result.…
Step by step
Solved in 4 steps
- The figure below depicts the market supply and demand for the perfectly competitive rollerblade industry. S Price per pair of Rollerblades 1,140 070 50 150 Number of pairs of Rollerblades per week Based on the figure above, if the current quantity demanded of rollerblades is 150 per week, you accurately predict that in the short run, Q Select one: a. price and quantity supplied will increase and quantity demanded will decrease. b. price and quantity supplied will decrease and quantity demanded will increase. c. price, quantity supplied and quantity demanded will increase. d. price, quantity supplied and quantity demanded will decrease.Consider the attached diagram of a competitive market and the typical firm operating in that market. In the long run, what total amount of the product will be supplied in equilibrium? [Hint: what amount do consumers demand at the long-run price?] Price 28 24 20 500,000 700,000 D Price, costs 60 66 78 MC ACexplain your answers in detail and use graphs whenever appropriate: The market for rental cars is very competitive. How would the following developments affect the quantity of car rentals that a typical rental car company wants to supply in the short run? a. With the easing of fears about Covid 19, people are more excited to travel than before. b. Local governments reduce the yearly fee that rental car companies have to pay for their facilities. Note, these fees do not vary with how many cars the company rents. c. Rental car companies have to pay higher wages for their workers. Suppose that initially the market for rental cars is in long-run equilibrium. a. What does the fall in the yearly fee rental car companies have to pay for their facilities do to the profits of a typical rental car company in the short run? b. What will happen to the equilibrium price and quantity of rental cars in the long run? Why? What will happen to the profits of a typical rental car company in the long run?
- What will happen to the demand curve for this toilet company in the long run? Describe two things that will happen to the demand curve. How much is the long run equilibrium quantity and price?Price $10 * * * 58 57 54 MC ATC AVC D-MAR Quantity Refer to the firm above which is operating in a perfectly competitive market. When the price of the good is $7, the firm's total profit is ____ [Do NOT put the dollar $ sign, just the number.]Hello, can u help me with this mcq question? the last expert got it wrong. Price $10 $8 $7 $6 $4 Show Transcribed Text 18 MC ATC AVC D-MR-AR 1-Refer to the figure, if the market price is $8, what will happen in the long run? a)Nothing will change in the industry and this firm will earn zero economic profit b)Firms will exit the industry until each firm is earning zero economic profit c)This firm will exit the industry d) New firms will enter the industry because there's opportunity for positive profits 2-Refer to the figure, if the market price is $6: a) This firm will cease production in the short run and bear losses equal to it's total fixed cost b)This firm will continue operating in the short run and it will expand it's production in the long run c)This firm will continue operating in the short run, but it will exit the industry in the long run d) This firm will continue operating in the short run and in the long run 3-Refer to the figure, if the market price is $10 a) This firm…
- Donald is a producer in the perfectly competitive market for cronuts - a pastry that is half croissant, half donut. Total Fixed Cost Total Variable Cost Quantity (cronuts) TFC ($) TVC ($) 125 5 125 10 10 125 18 15 125 32 20 125 52 25 125 82 If Donald's profit-maximising quantity is 20 cronuts, what is the market price per cronut at that quantity? Answer to the nearest whole number (with no decimal places or $ sign).Use the information in the graphs below to answer the following questions SAb $/gal 25- S1 25 H MC ATC 20 20 15 15 P1 10 10 P2 5 4 6 8 10 2. Thousands of gal/week 1 3 Millions of gal/week What is the long-run equilibrium price in this market? Please enter your answers as whole numbers with and do not type out your answer in words (ie. $5 or $5.00 not "Five dollars"). How many gallons per week will the individual firm produce to maximize profits in equilibrium? Please enter your answers as whole numbers with no extra words (ie. 5000 not "5000 gallons/week"). What is the individual firm's long run economic profit?Price Average total cost AVC Demand Marginal cost Marginal revenue Q Quantity Discuss the firm plotted on the figure. What type of firm do you see?is the firm operating at the optimal point of production? is the firm making a proht? s the firm operating in the short or in the long run?
- Q2. a. Create numbers for the table below TC TFC TVC AVC ATC MC 1 4 5 6 7 9 10 b. Indicate a market price that the firm will suffer from loss in the she run? What is the quantity level? What is the TR, TC and profit? Explanation: c. Indicate a market price that the firm will enjoy positive economic profits in the short run? What is the quantity level? What is the TR, TC and profit? Explanation: 2. 3.The figures below show (on the left) two possible demand curves and (on the right) two possible supply curves in the perfectly competitive hamburger market. Price per hamburger 0 A B D₂ D₁ Hamburgers per month Price per hamburger 0 Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. F c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G Hamburgers per month Assume that people consume either hamburgers or hot dogs. What will be the result of a decrease in the price of hot dogs? Hint: Are hamburgers and hotdogs complements or substitutes? S₂ S₁Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.