Microeconomics: Why do firms enter an industry when they know that in the long run

Q: Economic model illustration Illustrate and discuss the simple and complex circular model flow SHOW…

A: The circular flow model shows the movement of money, goods, and services between different sectors…

Q: The concept of vaporizing serves as a powerful tool of control and propaganda for the Party, as it…

A: The concept of vaporizing falls under is totalitarianism, propaganda, and control in George Orwell's…

Q: So the price ratio at which Anne is indifferent is 2 bagels per dollar and 0.5 liters of orange…

A: A budget set is the culmination of various sets of two commodities that aids in defining the budget…

Q: A bank receives an initial deposit of $10,000. The bank is also required to maintain a reserve ratio…

A: Banks can create credit through the lending. The lending capacity of banks depend on the reserve…

Q: Lobo Lighting Corporation currently employs 100 unskilled laborers, 80 factory technicians, 30…

A: The marginal product represents the change in the output when additional unit of input is used. For…

Q: Discuss the triumvirate of political, economic, and legal systems in Nigeria and how these factors…

A: Economic progress refers to the sustained increase in a country's overall economic well-being,…

Q: The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $220,000 now…

A: First cost = $220,000 Budget = $65,000 Time Period = 7 years Interest Rate = 10% = 0.10

Q: Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that…

A: The elasticity of demand gauges how responsive variations in a product's price are to the quantity…

Q: Section 1: True/False/Justify. [Please justify your answers with mathematical/logical arguments. N…

A: Pareto optimality is a concept in economics that is used to evaluate the efficiency of an economic…

Q: . Suppose the production function of a firm is given by f (x1, x2) = min {x: (a) Calculate the…

A: Given information: y = f(x1,x2) = min {x1, x2}  -----> Production function.  => y = min {x1,…

Q: The marketing director of the Reicken Furniture Company has determined that the demand curve for one…

A: To solve this given question, use the concept of price elasticity of demand. Price Elasticity of…

Q: 1. G&G Cat Food sells cans of cat food to customers. The quantity of output (cans of cat food) and…

A: In perfect competition market, firm makes maximum profit when their Demand curve = Marginal cost…

Q: me table below shows the production possibilities for Canada and Japan. Suppose that, prior to…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: Consider the figure below. Suppose the true price of a health care service is $50. Suppose further…

A: Moral hazard is a situation where one party is more likely to take risks because they will not bear…

Q: Consider the market for grapefruit sold in the United States. For each of the following changes,…

A: Demand and supply are the two fundamental concepts in economics that describe how buyers and sellers…

Q: In the short run, firms will In the short run, the supply curve will On the previous graph, show the…

A: A market is a mechanism that enables buyers and sellers to interact and engage in the exchange of…

Q: 24. The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-insurance…

A: The Patient Protection and Affordable Care Act (PPACA) , in United States include provisions that…

Q: Assume the equilibrium price of corn is $7.50 per bushel and the government installs a…

A: A guaranteed maximum price is a government-imposed price ceiling that sets the highest price that…

Q: Prospective payment systems, such as Diagnostic Related Groups ( DRGs),  transfers risk from ____ to…

A: A Prospective Payment System (PPS) is a method of reimbursement in which Medicare payment is made…

Q: You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia.…

A: The term "population" refers to the entire population of a particular geographic area, such as a…

Q: Industry Food and beverages Textiles Furniture Petroleum Stone, clay, etc. Primary metals Stone,…

A: Elasticity is an estimation of a variable's sensitivity to a change in another variable, most…

Q: The countries of Orion and Scorpius are small mountainous nations. Both produce granite and…

A: The ability of a country to produce a certain good more efficiently than the other country is…

Q: Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product, Pt is…

A: Tariff revenue: Products and services are imported from foreign nations whenever required. However,…

Q: The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an…

A: Price elasticity measures the percentage change in quantity due to percentage change in price.  The…

Q: Carol and Bob both consume the same goods in an economy of pure exchange. Carol is initially endowed…

A: A mathematical depiction of a person's preferences among a range of potential outcomes or options is…

Q: a S₂ Price Ceiling Questi 7 Q QUANTITY (Gallons of gasoline) Demand Refer to Figure 6-8. When the…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: of car at 2. Answer the following questions about the table below: Marginal Revenue Price per unit…

A: In a monopoly, profit is maximised at a point where marginal revenue is equal to marginal cost.…

Q: You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia.…

A: Trade restrictions are policies put in place by a state or international body that restrict or…

Q: Foreign's demand curve for wheat is p*=8-1/20q*d. Its supply curve is p*=2+1/20q*s   Determine the…

A: A tariff refers to the tax imposed by the government of a nation or by a supranational union on…

Q: (Figure: Cheese and Yoghurt) Use Figure: Cheese and Yoghurt. In the figure, a movement from point B…

A: Above curve is possibility Production Frontier (PPF) which tells how much cheese  producer has to…

Q: The demand function for a certain item is p represents the price of an item and Q represents the…

A: Price elasticity: Price elasticity reflects the % change in the net quantity demanded for a unitary…

Q: Exercise 4: Growth and capital over-accumulation Suppose two countries, A and B, with the same…

A: Disclaimer: - Since you asked multipart question, we are solving only first 3 subparts as per…

Q: The purpose of a business model is to provide a clear representation of where and how value is…

A: An organization's value creation, delivery, and capture processes are described in its business…

Q: The Cobb-Douglas production function can be shown to be a special case of a larger class of linear…

A: Q=γ[∂K-ρ+(1-∂)L-ρ]-V/ρ Where  Y is an Efficiency Parameter  ∂ is Distribution Parameter  P is the…

Q: When applying for credit, is it preferable to receive a low interest rate or a high interest rate?

A: Credit is the capacity to borrow funds or to buy products or services with the knowledge that…

Q: what does the effectiveness of minimum wage depend on?

A: The minimum wage is the lowest wage rate that employers are legally required to pay to their…

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…

A: GDP = 950 Goverment Purchases =? T = 325 C = 500 I = 200

Q: 1. Payment for health services in most low-income countries comes from: Group of answer choices Cash…

A: Health services refer to the range of services and interventions provided by healthcare providers,…

Q: Diogo has a utility function: U = 100X0.5 0.5 The price of X is p = $5, the price of Z is p₂ = $14,…

A: Given information: U = 100X0.5Z0.5   --------------> Utility function --------------------------…

Q: The table below shows price single (monopoly) firm, as w the monopolist's optimal pric

A: A monopolist firm produces at the intersection of MR and MC curves.  The marginal revenue (MR)…

Q: Carol needs to decide how to spend her wealth on  sh and chicken. For Carol, 1 lb of  sh is…

A:

Q: point X- the actuarially fair, but partial contract point Y- the actuarially fair, but partial…

A: Utility is a measure of the satisfaction or happiness that a consumer derives from consuming a good…

Q: Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks.…

A: The market for loanable funds explains how that borrowing happens. The supply of loanable funds…

Q: Part 1 In the​ figure, if the firm increases its output from Q1 to Q2​, it will

A: In case of perfect competition ,  A firm will produce where the price is equal to marginal cost to…

Q: You pawned your PSP at Pawnshop for P5,000 and agreed to pay the amount at the end of 9 months. The…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: If an allocation is already Pareto efficient and if indifference curves between the two goods have…

A: Pareto efficiency is one of the most fundamental principles in welfare economics. Although fully…

Q: There are many kinds of pressure on economy. Explain some of them. Answer in a economic…

A: The mechanism by which a society or a nation creates, distributes, and consumes products and…

Q: Households and businesses were surprised by oil price increases in 1970s. What happened  because of…

A: A supply shock is a startling occasion or event that disturbs the supply of labor and products in a…

Q: For the Cobb-Douglas utility function: the income and substitution effects are necessarily the same…

A: The Cobb-Douglas utility function is given by: U(X,Y) = X^a * Y^b where X and Y are the quantities…

Q: 1. Crew Makeup (6) Scrapers: (1) Pushcat: (2) Water Trucks: (3) Grade Checkers: (7) Operators:…

A: Cost refers to the total amount of money that is required to produce or acquire a product or…