Q: Roles of Ethiopian commercial banks in international business
A: Financial institutions refer to those institutions whose main role is to help firms and people with…
Q: How is a legal monopoly different from a natural monopoly? In a legal monopoly, barriers to entry…
A: A monopoly is an economic arrangement where one producer or seller holds a disproportionate amount…
Q: If the government raises income taxes on Americans in the top one percent of earners, while…
A: A progressive tax has a tax rate that rises (or progresses) as total income does. It levies more…
Q: One A4 page please Explain why there are no fixed costs in the long run
A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…
Q: Consider the following game in strategic form A B C a, a 0,1 3,0 1,0 1,1 1,0 1,0 0,0 2,-1…
A: In game theory, Nash equilibrium is an optimal strategy that a player opts for regardless of what…
Q: If quantity demanded responds substantially to a relatively small change in price, demand is: If…
A: Demand: Demand is the amount of product that a consumer is willing to buy at a given different price…
Q: Feng is the owner of a small business. When Feng has worked hard (an) during the year, net income…
A: Given, Feng is the owner of a small business. When Feng has worked hard (an) during the year, net…
Q: A family has taken out a mortgage of £350,000 to purchase a house on 1.1.2022. The mortgage is…
A: A mortgage is a loan taken out to buy real estate. Due to the property's role as collateral for the…
Q: Suppose that a firm producing furniture will be delivering 200 tables annually for many years to…
A: Given that labour and capital are the two inputs used in the production of furnitures. Therefore,…
Q: The local farmer's market offers 1 bag of cilantro for $6 or 2 bags for $10. What's the marginal…
A: Marginal cost is the cost of producing an additional unit of good. The marginal cost can be…
Q: A firm faces a demand curve for good Q as Q = 68 -2.1P where P is price. If the firm decides to…
A: Demand refers to a consumer’s desire to buy a product or service and willingness to pay for it at…
Q: In this graph, the slope of the curve is $ per Frisbee.
A: Slope of the line refers to the steepness of the line or the curve and is estimated as the change in…
Q: Anne is going to the grocery store to buy some fruit. She can buy either apples or oranges. Let a be…
A: Given that; Anna can by two fruits, either apples or oranges. Utility function is;…
Q: i) The UK inflation rate is predicted to be 10% and the Eurozone inflation rate is predicted to be…
A: The exchange rate is the usual rate at which a currency may typically be converted into another. The…
Q: What is the prevailing inflation rate in Freeland? prevailing inflation rate: What is the prevailing…
A: The aggregate demand (AD) is a theoretical representation of the relationship between the price…
Q: Transaction costs and political power might hamper the choice of public solution to an externality.…
A: Externality is a harm or benefit caused to the third party, which is not directly involved in the…
Q: Assume that the three-month forward rate between $ and 1£ is FR= $1.225/1£ and a speculator believes…
A: The market price at which a currency can be purchased or sold for immediate delivery is known as the…
Q: Compare and contrast Pigouvian welfare economics and Paretian Welfare economics.
A: The allocation of goods and resources to promote social welfare is known as welfare economics. It is…
Q: Suppose the government regulates the price of a good to be no lower than some minimum level.…
A: Price control refers to the policy of setting prices by a government agency, legislative act, or…
Q: True or False: 1. According to the wage-price spiral, if a company gives a worker a raise in pay,…
A: The two fundamental ideas in economics that help us comprehend the choices that consumers and…
Q: You bought a ticket for a concert of Taylor Swift in Manchester for £400. If you want, you can…
A: As I bought a ticket for a concert by Taylor Swift in Manchester. The various answers related to the…
Q: Because of the timing problems of discretionary fiscal Keynesian policy economists favor instituting…
A: Fiscal policy: The act of manipulating the economic output level by govt intervention through the…
Q: An environmental engineer wants to evaluate three different methods for disposing of nonhazardous…
A: Given, Interest Rate (i) = 8%
Q: 8. A typical worker will earn £300k in their youth and £600k in middle-age. Over their lifetime,…
A: The future consumption level of a person depends on the current as well as the future income of a…
Q: 1. ‘China’s economic transformation since the late 1970s has been a process of neoliberalization,…
A: Economic transformation refers to the process of changing the structure and performance of an…
Q: (Table: Optimal Choice of Yogurt and Cheese) Use Table: Optimal Choice of Yogurt and Cheese. The…
A: The principle behind utility maximisation is that individuals seek to get the most out of their…
Q: The SolarFarm powerplant has both fixed and variable costs. As the plant expands production, it…
A: One who sells on a market with no other competitors is known as a monopolist. He is the sole seller…
Q: Discuss what will happen to the value of the pound in the short run and in the long run if the Bank…
A: Interest rate basically refers to the cost of borrowing money from a financial institution. It is…
Q: A normative statement reflects opinions or beliefs, while a positive statement...
A: A normative statement is one that is about the opinions and beliefs that is how the beliefs should…
Q: Assume the following equations summarize the structure of an economy. C=Ca +0.7(Y-T) Ca = 2,000 - 5r…
A: Government spending refers to money spent by the public sector on the acquisition of goods and…
Q: What are the warnings of using the OLS approach to hypothesis testing? Discuss.
A: OLS stands for Ordinary Least Squares. It is a method of determining a line that minimizes the sum…
Q: Which of the following arguments could disprove the idea that humans are rational beings? Humans are…
A: When talking about rational decisions, it can be said that humans are considered as rational when…
Q: A software firm has only two inputs to production: domestic programmers based in the firm’s U.K.…
A: In the study of microeconomics, an Isoquant curve is a concave-shaped curve on a graph that depicts…
Q: 4. Plot the following Price and Quantity combinations. Note that the points are given in the format…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: (c) The government wishes to stimulate spending, and writes a law to reduce the interest rate from…
A: Borrowing refers to the act of obtaining a loan, which is a sum of money that is lent by a lender to…
Q: Discuss the effects of trade policy on poverty and inequality. Despite potential adverse…
A: Trade policy can have a significant impact on poverty and inequality within a country.…
Q: Discuss the nature of the Aggregate supply curve (feel free to draw a picture). Explain it's shape…
A: Aggregate supply is the totality of all the goods and services which are supplied in the economy at…
Q: A company is producing a product using capital with the production function f(K) satisfying f'(K) >0…
A: To maximize expected profit, the company can set up the following maximization problem as follow:
Q: In the market for widgets, the supply and demand curve are “normal” 45° lines. The equilibrium price…
A: Equilibrium is a state of balance in which the market forces of demand and supply intersect each…
Q: Alice would be willing to pay up to £15 for a gamble giving a 35% chance of £50 and a 65% chance of…
A: Given information 35% chance of getting 50. 65% chance of getting 10. Alice is willing to pay up to…
Q: (c) Determine the point-price elasticities of demand and supply and state whether at the equilibrium…
A: When demand is perfectly elastic the price in equilibrium remains unchanged with increase and…
Q: Draw a negatively sloped yield curve and label it curve 1. On the same diagram draw a new yield…
A: The yield curve has long been used as a measure of the condition of the economy. Typically, a…
Q: 1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they…
A: According to the price setting curve :- P = ( 1 + m ) W m = markup over the wages Here the price…
Q: b) Draw a large graph with “consumption when young” on the vertical axis and “consumption in…
A:
Q: Use the information in the table below to determine the opportunity cost of increasing output of…
A: Opportunity cost: The term opportunity cost signifies all the alternative benefits sacrificed to…
Q: List and explain the four main phases of a business cycle.
A: The business cycle, also known as the economic cycle or trade cycle, is the natural fluctuation of…
Q: Assume that you start by borrowing either $100,000 or 10,500,000 Japanese Yen. Using a starting yen…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: True/False Central Bank directly deals with the depositors and consumers in the economy.
A: A central bank is a type of financial organization in charge of overseeing the monetary policies and…
Q: Question 1 (c) Suppose you are paying off your new fridge by monthly instalments of £25 paid in…
A: The actual annual rate of interest that is paid on a loan or generated on an investment is known as…
Q: 10. Suppose that the store increases the price of shoes from $25 to $30. Using the mid-point…
A: Since you have asked multiple question, we will solve the question 10 for you. If you want any…
The demand curve for a monopolist is inelastic. Why?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Deregulation, like all changes in government policy, always has pluses and minuses. What do you think some of the minuses might be for airline deregulation?How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?In what sense is a natural monopoly natural?
- ev Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons) Price (P) Total Revenue (TR) Total Cost (TC) 1 $1,300 $1,300 $900 2 $1,215 $2,430 $980 3 $1,130 $3,390 4 $1,045 $4,180 5 $960 $4,800 6 $875 $5,250 7 $790 $5,530 Determine the firm's profit-maximizing price. Write the exact answer. Do not round. Answer S $1,100 $1,270 $1,510 $1,960 $2,560Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 50 40 30 20 10 0 Price: $ 15. 45 75 9010512013550165180195 30 60 Quantity per period (in thousands) MC D thousands a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors' profit-maximizing output and price? Output: thousands Tools MR K c. Suppose that the government of Lidia imposes a price ceiling of $35,000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousandsa. What is the monopolist's profit-maximizing output and price? Output: Price: $ b. What will be the monopolist's total profit?
- Table 6.1: A Monopoly Price Quantity Marginal (P) (Q) Cost (MC) $10.00 $3.00 $9.00 10 $4.00 $8.00 15 $5.00 $7.00 20 $6.00 $6.00 25 $7.00 $5.00 30 $8.00 Refer to Table 6.1 for a price-maker. To maximize total economic profits, this firm will set its product's price at per unit. ing O 59 ard O S6 O 8 O S7According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget to subtract total cost from total revenue. Price ($) 18 16 14 12 10 8 6 4 42 $60 $80 $240 $-120 MC1 АТС1 AVC1 MR₁ 10 20 30 40 50 60 70 80 90 QuantityProblem 11-04 (algo) ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your irm have determined that group 1's elasticity of demand is -5, while group 2's is -2. Your marginal cost of producing the product is 630 a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2 $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. ?At least one group has elasticity of demand greater than 1 in absolute value. ?At least one group has elasticity of demand less than one in absolute value.…