Consider the perfectly competitive market depicted in the graphs. Assuming the market is in equilibrium, what should this firm do? lay off workers temporarily in the short run keep producing in the short run
Q: The article has provided an assessment of performance management in an organisation, analyse the…
A: The provided question has been answered from the perspective of 'Business Economics.The immediate…
Q: A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be…
A: Present worth, also known as present value, refers to the current value of a stream of future cash…
Q: Question Completion Status: THC Vertical distance between points A anu D represents a tax in the…
A: The government sets a maximum and minimum price for products in the market. The regulation of these…
Q: . In the Bayside Fountain Hotel problem, compute an exponentially smoothed forecast with an α value…
A: The professional basketball and ice hockey teams of the city play their home games at the…
Q: Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given…
A: The demand and supply curves are representative of the quantity demanded and quantity supplied…
Q: B. Natural monopoly analysis The following graph shows the demand (D) for cable services in the…
A: The natural monopoly is a kind of monopoly that occurs due to a very high start-up or fixed cost. It…
Q: Given a closed economy where there is no public sector. Production in the economy can be described…
A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…
Q: What is M1 in Ironmania? $ million b. What is M2 in Ironmania? $ million
A: The two halves of the money supply, M1 and M2, represent the various forms of money that are used in…
Q: Scooter's Scooters is a large American manufacturer of electric scooters operating out of Mesa.…
A: Economies of scale is when the increase in production decreases the ATC. Diseconomies of scale is…
Q: A company finds that the rate at which the quantity of a product that consumers demand changes with…
A: The demand function is a mathematical representation that describes the relationship between the…
Q: As quantity increases, a firm's average fixed costs will always.... increase decrease increase then…
A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…
Q: What will be the dominant strategy outcome for Felix and Jocelyn? O They both get 12 years. O They…
A: Best response strategy is the strategy that gives the player maximum payoff corresponding to the…
Q: A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the…
A: The movement of currency from one country to another country through exchange is called the exchange…
Q: Describe several situations, imagined or actual, where good technological policy intentions could…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: Using the framework of the supply and demand of loanable funds, analyze the possible effect on the…
A: The objective of the question is to analyze the possible effect on the equilibrium interest rate in…
Q: 3. Remember the eight sailors? They set sail again on the S.S. Gold and get shipwrecked again. The…
A: Comparative advantage in international economics is a concept given by David Ricardo as an upgrade…
Q: The following graph plots daily cost curves for a firm operating in the competitive market for air…
A: A perfectly-competitive firm produces homogenous-product. These goods(G) are substitutable. A…
Q: The lanussi Legal Aide office assisted 110 people in June, 2020, with a staff labor cost of $3,880.…
A: Growth in productivity means growth in output over a certain level of input over a certain period of…
Q: There are two types of workers in financial industry: A (able) type and C (challenged) type.…
A: There are 2 types of workers:Type A (Able)Type C (Challenged)Employer's will pay salary:Type A =…
Q: A-$37, B-$15, C-$12, D30 and E-43. Price D I D WR! 1 1 E MC Quantity How much revenue will the…
A: When a monopolist produces and distributes things at a level where MC matches the MR, then there is…
Q: How is long-term growth illustrated in an AD/AS model? Draw a graph of the AD/AS model and show the…
A: Macroeconomic research provides a comprehensive forecast for the fiscal and monetary landscapes of…
Q: Do you think Qatar should be spending financial resources on floating Wind Turbine energy as part of…
A: This can be defined as the tool that is used by the individual, business, or any other organisation…
Q: K CENGAGE MINDTAP OS MindTap - Cengage Learning Homework (Ch 09) PRICE (Dollars per ton) 8: F2 530…
A: Tariff is a type of tax that government usually imposes on imports. Tariff help government to…
Q: Resource pricing O cannot be predicted. O determines people's incomes. O is monopolistically…
A: Resource pricing is the amount of money spent on acquiring resources. Resource pricing helps…
Q: True/False (Explain): Higher the interest rate, higher the Present Value of future cash flows.
A: Cash flow:Thе nеt amount of cash or cash еquivalеnts that еntеrs and еxits a businеss or financial…
Q: what is the value of b
A: Aggregate expenditure is defined as the total expenditure that is incurred by all the economic…
Q: In period t, a parental household (indexed by i) equipped with human capital hit earns a labour…
A: Utility FunctionBudget ConstraintHousehold Income - Cost of educating children = .
Q: Money Market Mutual Fund Balances Held by Businesses Money Market Mutual Fund Balances Held by…
A: The involvement of banking in contemporary economics extends beyond traditional financial…
Q: 7. Solving for dominant strategies and the Nash equilibrium Suppose Russell and Aaliyah are playing…
A: Best response strategy is the strategy profile that provides the player the maximum payoff…
Q: Table 10-1 Quantity (Units) 1 2 3 4 5 6 7 OOOC $2 $3 $9 Private Value O $10 (Dollars) 14 13 12 11 10…
A: The output level that represents all of the transaction's costs and benefits, or the equilibrium…
Q: LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while LRAS2 and SRAS2 denote LRAS and SRAS in year…
A: The Aggregate Demand and Supply (AD-AS) model is a macroeconomic model that illustrates the…
Q: Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables…
A: Utility function represents the relationship between utility and consumption of goods. The change in…
Q: In the pleasant city of Evanston there is only one butcher shop, Smithfield. It has the 'monopsony'…
A: According to the question, Revaluating the combinations of butchers that yield the highest profits,…
Q: A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the…
A: The objective of this question is to convert the price of a UK-manufactured car from GBP to EUR…
Q: 4. Bob produces flower pots for sale, which he designs and manufactures using 3-D printing…
A: Rent on building = $30,000 and rent on machinery is $20,000 per month. Total fixed cost =…
Q: Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian…
A: Part a: Graph Description ;-Price (P) on the vertical axis and Quantity (Q) on the horizontal…
Q: Ashley loves hanging out at the mall (payoff of 100) and hates hockey (payoff of -100). Joe loves…
A: Ashley loves hanging out at the mall and she receives a payoff of 100 from it. She hates hockey and…
Q: Consider a two-person (1 and 2) two good (X and Y) exchange economy. The utility function of person…
A: Utility refers to the number that represents the satisfaction level or usefulness of a consumer in…
Q: Simplify: 2x/3 - 3x/4 a. 6x2/12 b. x/12 c. -x/12 d. -x
A: The objective of the question is to simplify the given expression 2x/3 - 3x/4.
Q: A junior PM determines the present worth of a project to be $56,417. He misplaced the full set of…
A: A metric used in financial analysis to gauge the profitability of possible investments is the…
Q: Answer the next question based on the following payoff matrix for two oligopolistic firms in which…
A: The given pay-off matrix is provided below. Firm A High PriceLow PriceFirm BHigh Price A = $250B =…
Q: dentify one goverment policy to encourage increases in labor productivity
A: Labor productivity refers to the output that is produced by labor, or the quantity of output that is…
Q: Required information The following data is provided for a PPP project. To the People To the…
A: The expression conventional B/C ratio likely implies the Benefit-Cost Ratio (B/C ratio) in the…
Q: 6 5 Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: A person is endowed with bundle A. The budget line then rotates from red to blue. Good X
A: This can be described as the concept that provides the graphical representation of the combination…
Q: Question 1 According to a researcher at the FDA, vegan foods are “the way if the future”. More…
A: Demand is the quantity of a good or service that consumers are willing and able to buy at a given…
Q: The government has to observe a balanced budget, i.e. expenditures for public schooling equal tax…
A: The objective of the question is to derive the level of public education, denoted as 'epub', given a…
Q: For the utility function U = Qx0.58Qy(1-0.58) find the trade-off rate between good X and good Y at…
A: The marginal rate of substitution of X for Y measures the rate at which the consumer is ready to…
Q: Some people have argued that the high inflation of the late 1970s was a consequence of the fact that…
A: The Federal Reserve:It has the responsibility to manage the activities of commercial and financial…
Q: 10. Questionable business practices according to antitrust agencies Complete the following table by…
A: Pricing alludes to the most common way of setting a worth or monetary sum for a product or service…
Step by step
Solved in 3 steps
- 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?Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?
- Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 80 Profit or Loss 70 ATC 60 50 40 20 AVC 20 MC 10 10 12 QUANT TY Thousands of pans per dey 140 45 32 PRICE (Dollars per pan) 品 导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 QuartyPrice (dollars per pound) S Market price 2 0 10 20 30 Supply of apples 40 Demand for apples 50 Quantity (thousands of pounds) Price and cost (dollars per pound) Market price 2 10 يلا 20 30 40 ATC -D-MR 50 Quantity thousands of pounds) Given the two diagrams, the left showing the market supply and demand, the right showing a typical individual firm in this competitive market, what would you expect will happen over time? Existing firms will increase output with positive profits. Existing firms will exit the market and average profits by market firms will remain positive. New firms will enter the market and average profits by market firms will remain positive. Existing firms will exit the market and average profits by market firms will be zero in the long run. New firms will enter the market and average profits by market firms will be zero in the long run.
- The graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third suppi enters the market, holding all else constant. Price per Stuffed Animal (5) 10 9 110 7 6 DA A m 2 Market for Stuffed Animals Firm Firm 2 Market 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 A third firm would mean O market supply increases. O higher prices of stuffed animals. market supply decreases. Firm 1 and Firm 2 would lower output to accommodate the new supplier in order to keep market supply constant.Price and cost $40.50 36.00 30.00 22.00 20.00 O Lover b. profit of $1,440 c. loss of $2,520 d. profit of $1,300 MC ATC 130 180 240 adest erias in 20 AVC MR Quantity 34. Please refer to the figure above: If the market price is $30 and the firm is producing output, what is the amount of the firm's profit or loss? a. loss of $1,08018 IV 16 14 II 12 A P1=MR1 10 8. B Po=MRo 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Quantity Utilize the graph above, which illustrates average fixed costs, average variable costs, average total costs, and marginal costs of production for a firm in a perfectly competitive market, to answer the following question. If the price is P1 what should the firm do? O The firm should shut down in the short-run because price is below AVC. In the long-run, they will assess the market conditions to see whether they should reopen for business or exit the market. The firm should decrease production because marginal revenue is greater than marginal cost. Therefore, the firm has not maximized operating profits. O The firm should exit the market because firms will soon enter. This will drive the price below ATC, which will Cost 41
- p/costs 12 4 5 3 сл MC ATC MR In a perfectly competitive market, what output will this firm produce? 1 2 3Macmillan Learning Ⓒ The graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third supplier enters the market, holding all else constant. Price per Stuffed Animal ($) 10 Incorrect 8 7 6 5 4 3 2 11 0 0 Market for Stuffed Animals Firm 1 Market Firm 2 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals A third firm would mean market supply increases.The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC АТС of Ear Buds ($) ($) 9.00 - 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$ d. Now assume the market price is $5.50 per pair, and Buddies produces the…
