Firm E has cost function C(q) = 3 + 10, where 3q² is the firm's variable cost, and 10 is a short run sunk fixed cost. The market price is p = 6, and if firm E stays in operation it will produce q= 1 unit of output. In the short run, should Firm E operate, or should it shut down? O Shut Down, because profit from operating is negative O Operate, because profit from operating is positive O Shut down, because the fixed cost outweighs the marginal revenue of operating O Operate, because profit from operating is greater than profit from shutting down
Q: Why is business failure a necessary phenomenon in a free economy? It allows entrepreneurs to deduct…
A: Free economy represents a type of economy in which access to productive resources in an economy in a…
Q: Find the Walrasian equilibrium price ratio P/Pr and the Walrasian allocations. Does trade take place…
A:
Q: y-axis A 240 Zone 4 Zone 1 1 Zone 3 B Zone 2 In this graph, zone 2 is characterized by x-axis…
A: Swan model explains simultaneous existence of internal and external disequilibrium in the economy.
Q: Mike makes excellent cheesecake and Sue is very good at changing the oil in a car. Sue agrees to…
A: Barter system is where there is exchange of goods and services for other goods and services. There…
Q: ATC AVC
A: A monopoly is a market structure where there is only one firm in the market for a good or service.…
Q: A firm produces at an output level where the marginal products of labor and capital are both 50…
A: Marginal product is labor is the change in total cost due to an additional labor hired. Value of…
Q: please computation for the following isoquant found in table 14 and show your computation for each…
A: Marginal rate of substitution, or, MRS is defined as the amount of commodity that the consumer is…
Q: Refer to Table 10.1. The required reserve ratio is 10%. If the First Charter Bank is meeting its…
A: Reserve are the part of deposit that is kept by the bank. The reserve is the product of reserve…
Q: What is the difference in the industry output levels produced by the perfectly competitive industry…
A: Given information: P = 2000 - Q -------> Market demand Where Q is the industry's output level…
Q: Refer to the following payoff table:
A: Dominant strategy is defined as the strategy of the player which remains the same irrespective of…
Q: Direction: Write your answers on the space provided before the number. 1. It is the new form of…
A: Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The correct solutions are posted with the questions. Please show work for the answers listed…
A: The oligopoly market refers to the market which is characterized by the few dominant firms. The…
Q: the price at which a 91-day Treasury Bill is sold falls, which of the following statements are true?…
A: Treasury bills are the bills that are issued by the government of a county, which can be purchased…
Q: Which of the following is an example of fiat money? Group of answer choices A U.S. one-hundred…
A: Money is anything that is accepted as payment by people while buying and selling of product. There…
Q: If a firm can grow and have all inputs, both labor and capital, specializing in a single task, the…
A: The term "production" is used to describe the steps involved in creating an end product from raw…
Q: Suppose the price elasticity of demand for Valencia face-to-face and online classes is 3.83 and .72…
A: The price elasticity of demand shows the percentage change in quantity due to percentage change in…
Q: 3. Suppose the prisoner's dilemma in question 2 is played an infinite number of times. Assume a…
A:
Q: You have 1 account: The balance owed is $1500 and a $7500 credit limit. What is the maximum…
A: A debt-to-credit ratio compares the amount of debt an individual owes to the total of credit limit…
Q: What is the nash equilibrium of the game "sticks"?
A: Nash equilibrium, a notion from game theory, determines the optimum course of action in a…
Q: One reason why a tradable permit system will reduce pollution more efficiently than a…
A: Tradable permits are pollution limits which can be traded in order to create a market in the right…
Q: Suppose that the first depositor deposits its money $1,200 into a bank and the required reserve…
A: Money multiplier is inversly related to the reserve requirements. This is given as :- Multiplier =…
Q: What is/are the Nash Equilibrium(s) in this game? 1. (5,5) only. 2. (7,7) only. 3. both (5,5) and…
A: Nash equilibrium is the equilibrium point in which each player chooses its optimal strategy in…
Q: The following graph plots an aggregate demand curve. Using the graph, shift the aggregate demand…
A: Absolute income hypothesis: This was proposed by Keynes which explains that how much a household…
Q: The data below are estimated for the project study of a certain business investment. If money is…
A: The present worth approach of calculation is an equivalence method in which the cash flows of a…
Q: Q4) Assume you administered a test in September and then again in November. You obtained a…
A: Correlation between two variables shows the relationship between the two variables. This shows how…
Q: 6. They are those likely to move because they are forced to, they find their environment…
A: Since you have asked multiple subparts, we would be answering the first three for you. To get the…
Q: Mark all that apply. unique product. low barriers to entry. elastic demand. high fixed costs. price…
A: Monopoly is a kind of market structure where there is a single producer and many buyers. That single…
Q: If MPK = 4, and MRTS = 2 what is MPL? Select one: O a. 2/4 O b. O c. Ń ∞ A -4 8 O d. -2
A: Capital components of production are the tools and machines used in the production process. Capital…
Q: 3. Breakdown of a cartel agreement Consider a town in which only two residents, Sean and Yvette, own…
A: In economics, profit maximization is the short run or long run process by which a company might…
Q: Consider Solow's model of economic growth, for a closed economy, without population growth or…
A: The Solow growth model is an alternative to the Harrod-Domar growth model. The model states that in…
Q: Profit Maximization. Assume that the output price p, wage rate w, and rate of return to capital y…
A: Given production function q=f(L,k) Output price=p Wage ate=w interest rate=r
Q: Draw a demand, marginal revenue and marginal cost curve for a monopoly firm. Be sure to label axes…
A: Monopoly usually refers to a market situation in which there is only a single seller/firm that deals…
Q: After careful consideration of the single factor identified in the model above, the researchers were…
A: The regression model analyzes how the independent variable is explained by the independent variable.…
Q: firm is trying to decide whether to keep an item of construction equipment for another year. The…
A: The double declining balance (DDB) depreciation method is an approach to accounting that includes…
Q: An economy has full-employment output of 6,000. Government purchases, G, are 1,000. Desired…
A: National saving can be thought of as the amount of remaining income that is not consumed, or spent…
Q: PROBLEM (6) (Optimal tariff setting without the small country assumption) US demand and supply for…
A: The demand for a product defines the desired quantity of that product that is required by the…
Q: Calculate Rian's marginal revenue and marginal cost for the first seven rompers they produce, and…
A: First of all, we want to know the term marginal revenue and marginal cost. Marginal revenue is…
Q: Husin received his federal education loan of $3,000 for current semester on August 31. He deposited…
A: compound interest rate is the interest rate which is incurred on the initial amount and the interest…
Q: Hollingsworth needs a new precision grinding wheel. If 12% is the acceptable return fo…
A: The ability for investors to compare values across time makes present value crucial. PV can assist…
Q: Consider a small town with two competing restaurants: Doug’s Diner and Betty’s Bistro. There is 1000…
A: Nash equilibrium has been attained in the game when no player, not even one who is aware of the…
Q: The price of a car you want is $37,000 today. Its price is expected to increase by $1000 each year.…
A: Introduction Goal seek method: The Goal Seek Excel function that is also known as What-If-Analysis,…
Q: Suppose full employment output equals $25 trillion and actual output equals $14 trillion. If…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.…
Q: P500,000 was deposited 20.15 years ago at an interest rate of 7% compounded semi-annually. How much…
A:
Q: 1. Examples of the principle of diminishing marginal utility include all of the following EXCEPT: A.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Consider the cashflow (n = 10 years, MARR = e = 14%) Cash Flow A Investment Revenues P 180,000 P…
A: Particular Amount Investment 180000 Revenue 350000 Expenses 400000/year for 3 years and then…
Q: Find the consumers' surplus and the producers' surplus at the equlibrium level for the given…
A: Equilibrium is where demand equals supply. Consumer surplus is the area below demand curve and above…
Q: To fight inflation, the Fed will: (Select all that apply) A. Sell securities on the open market.…
A: Monetary policy is the policy used by the central bank of the country to control the money supply in…
Q: A businessman is considering building a 25-unit apartment in a place near a progressive commercial…
A: Given, Rate of Return = 20% Number of Apartment = 25
Q: Paula hires Alfred to manage her store. The left column of the table below shows Alfred’s possible…
A: When investors have a mindset of making investments decisions by focusing on the potential gains it…
Q: Consider the cashflow (n = 10 years, MARR = e = 14%) Investment Cash Flow A P 180,000 Revenues P…
A: Given, Investment = P180,000 Revenue = P350,000 Expenses = P400,000 Salvage Value = P40,000 Time…
N6
Step by step
Solved in 2 steps with 1 images
- The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (SRATC) and the long-run average cost curve (LRAC); for example, Q₁ marks the point of tangency between SRATC₁ and LRAC. The orange point on SRATC3 indicates the firm's current output level in the short run (Q3). COST PER UNIT SRATC₁ LRAC SRATC₂ Q₁ Q₂ SRATC3 24 QUANTITY OF OUTPUT SRATC5 SRATC4 | 1 Q5 <The minimum price at which a firm would produce in the short run rather than shut down immediately is the point at which price is equal to marginal cost price equals the minimum point on its average variable cost curve. O price is equal to average total cost O total revenue is equal to total costSuppose solar panel manufacturing is an industry subject to significant economies of scale, and there are currently three solar panel manufacturers all with identical costs. If the demand for solar panels is 5 times the quantity produced at the bottom of the long-run average cost curve, which of the following is most likely to happen to the solar panel manufacturing industry in the long run? O The number of solar panel manufacturers will increase O The price of solar panels will increase O The fixed costs of manufacturing solar panels will increase The quantity supplied of solar panels will decrease
- You learn that a firm's average total costs (ATC) and average variable costs (AVC) are exactly equal. What does that mean? O Marginal cost is zero O ATC and AVC must be equal to zero O Average fixed costs (AFC) are zero O Economic profit is positive O Economic profit is negativeThe firm depicted in Figure 7-10 is currently at point F producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will Q 40 Figure 7-10 Dollars per Unit ATC LRATC ATC 200 375 Units of Output O adjust from point F to point G in the short run O be unable to adjust to point G in the short run because some inputs are fixed O be unable to adjust to point G in the long run because no inputs are fixed O be unable to adjust to point H in the short run because some inputs are fixed O adjust from point F to point H in the long runAn increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run. O True False
- A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100Price and Cost ($) Given the information from the figure, if price equals $0.40, the firm should ATC 1.2 AVC 0.8 0.6 0.4 0.2 0.2 0.4 9'0 0.8 Output 1.2 O stay open because it is making an economic profit O stay open in the short run only because it is operating at an economic loss O stay open because it is making a normal profit O shut down in the short run because it will minimize its lossEconomics Question
- The company XYZ produces chairs and its costs are given in the table below. Variable Quantity Total Costs Variable Costs Fixed Costs Value 30 $3,600 $2,400 $1,200 In the short run, should this company shut down if the price of the chair is $95/unit? a. Yes, because the average total cost is higher than the price. b. Yes, because the average variable cost is higher than the price. O c. No, because the average total cost is higher than the price. d. No, because the average variable cost is lower than the price.Price and costs (dollars) 20 16 12 8 4 0 5 10 MC ATC 20 15 Quantity (per day) The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8, in the short run the firm will Select one: O a. incur an economic loss O b. earn an economic profit O c. earn a normal profit O d. None of the provided answers is correct because more information is needed to determine the firm's profit or lossTime left 1:12:53 A firm's total short-run cost function is C(y) = 12y³ – 8y? + 30y + 12. At what price will the firm agree to produce assuming that the marginal cost is known? O a. $8.33 b. $28.67 O. $11.68 O d. None of the above Clear my choice