2. Is a market output (call it Q) that is less than the competitive output ( output)? Explain why or why not. Is a market output (call it Q) that is greater than the competitive output (QM) efficient? Explain why or not. (See reading 10.1) You may use an example supply udoune with equations cg.0%= P.OD-10-P. Is Q=3 efficient? Is Q=7 efficient?

2. Is a market output (call it Q) that is less than the competitive output ( output)? Explain why or why not. Is a market output (call it Q) that is greater than the competitive output (QM) efficient? Explain why or not. (See reading 10.1) You may use an example supply udoune with equations cg.0%= P.OD-10-P. Is Q=3 efficient? Is Q=7 efficient?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

part 3 and 4 needed
Consider an economy with 2 goods, H consumers and m firms. Each consumer, h, has an endowment of 2 units of good 1 and none of good 2, preferences described by a. Calculate a firm’s profit-maximizing choices, a consumer’s demands and the competitive equilibrium of the economy. b. What happens to as (i) m increases; (ii) H increases? Why? c. Suppose that each consumer’s endowment of good 1 increases to 2 + 2δ. Explain the change in relative prices. d. What is the effect of changing: i. The distribution of endowments among consumers; ii. The consumers’ preferences to
Solve all this question......you will not solve all questions then I will give you down?? upvote....
If the inverse demand function for toasters is p= 120 - 0.5q, what is the consumer surplus if the price is 10? Consumer surplus (CS) is $- (Enter your response as an integer.) ост H étv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 #3 2$ & 3 4 5 7 8 W R T Y U * CO < CO
14. Suppose a market is currently producing in an allocatively efficient manner. Using the concepts of marginal utility, marginal cost, and price, explain exactly what that market must be doing and why that makes the outcome allocatively efficient or not.
Consider the following market for a crop: Demand: Qd = a-bP = 18-0.5P Supply: Qs = c+dP = -2+0.5P Then Add: Crop is larger and supply is now Qs = 4 + 0.5P Is my graph correct?
Fall 2023/24) Adrienne and Stephen consume pizza, Z, and cola, C. Adrienne's utility function is and Stephen's is Us = (23) 05 (₂) 05 Their endowments are ZA-10, CA = 60, Zg=10, and C=140. What are the competitive equilibrium prices, where one price is normalized to equal one? is S $$ (Enter) UA =ZA CA Determine p, the competitive price of Z, where the price of C is normalized to equal one. Enter your response rounded to two decimal places) The competitive price, p.
3. Consider a one-consumer one-firm economy in which u(x) = aTz+1q, w = 1 and f(z) = z2. (a) Derive a competitive equilibrium for this economy. (b) Derive the Pareto set of this economy.
This question is inspired on the recent evolution of electricity markets in Switzerland and the EU.Suppose a market consists of three producers:i. Firm 1 (photovoltaics) has a marginal cost of production od CHF 1 and can produce up to 100 MW/h;ii. Firm 2 (hydroelectric) has a marginal cost od production of CHF 5 and can produce up to 200 MW/H;iii. Firm 3 (gas) has a marginal cost od production of CHF 20 and can produce up to 200 MW/h.For simplicity, assume that there are no fixed costs of production.Consumers are willing to pay a constant amount of 25 CHF for each additional MW/h up to 500 MW/h. a) Draw a graph of supply and demand for this market.b) Calculate the price in the market and the profits of each company.
Please explain and demonstrate the following questions. Refer to the table below, which shows the maximum number of goods X and Y that producers A and B can produce in one day. Q15. If there are 20 units of good X being produced efficiently each day, how many units of good Y will be produced each day? a) 30 b) 40 c) 50 d) 60 Q16. If there are 20 units of good Y being produced efficiently each day, how many units of good X will be produced each day? a) 40 b) 60 c) 80 d) 100
1.2 Consider the following customers of a Japanese sushi restaurant. Their total benefit (TB) measured in terms of the maximum amount of money they are willing to pay for n dishes are given below. Dish of sushi 0 1 2 3 4 5 6 7 8 Customer A 0 60 90 Total Benefit ($) 115 125 120 110 95 70 Customer B 0 30 50 60 55 50 40 25 5 As postulated in economics, customers are maximizing their economic surpluses. One can decide not to dine in this Japanese restaurant and can get zero economic surplus. (a) The sushi restaurant is now charging customers $20 per dish. How many dishes do these two customers choose to buy under this pricing arrangement respectively? Use both total and marginal approach to solve the problem. Show your steps. (b) Now, the sushi restaurant changes its pricing policy. Now they charge each customer $100 and let them order as many as they want. Will the customers continue to dine in this restaurant? If so, how many dishes would they choose to buy? Again, solve this using both…
Use the graph above to answer these questions: What is the profit-maximizing level of output? What is the economic profit? What is the per-unit amount of profit at the profit-maximizing level of output?