6) Given that the competitve market pice is equal to P*, Should the firm shut down in the short run? Should it shut down in the long run? Explain.
Q: Supply chain shortages have limited the number of microchips available to car manufacturers in the…
A: Quota refers to the limit on the quantity of a product that the suppliers can supply in the market.…
Q: Suppose you are the chief economist in Econland and the current unemployment rate is 2 percent and…
A: The unemployment rate is a measure used to assess the percentage of the labor force that is jobless…
Q: Identify and describe the opportunity cost of an activity that you enjoy. Remember to consider…
A: Reaching a decision involves evaluating the pros and cons of various alternatives with the objective…
Q: Question 13 A Nigerian household would have to make a decision on whether to purchase Starlink's…
A: The problem of what, how, and for whom to produce is a fundamental economic question that arises due…
Q: MI 6 P=$/Q 100 95 90 85 80 75 70 65 songs5050 60 45 40 35 30 25 20 15 10 D before stay at home order…
A: Diminishing Returns to Variable Input:Diminishing returns to variable input is a concept that arises…
Q: 11/14 Starlink's Question 18 Suppose that the pricing strategies for FiberOne and of Starlink are…
A: To determine the equilibrium outcome in the given scenario, we need to analyze the payoff matrix and…
Q: Which of the following is an example of an objective assessment of employee performance? Sarah, a…
A: go through each option and explain whether it represents an objective assessment of employee…
Q: Refer to the market for laptops shown in Figure 1 in the text. If the market price of a laptop was…
A: Willingness to accept (WTA) is the minimum amount of price that а person is willing to accept to…
Q: In 2012, the economy of country Z had consumption of $2,200,000, exports of $65,000, investment of…
A: Given:Consumption expenditure in country Z =2,200,000Export X=$65,000Investment I=530,000Import…
Q: The following graph gives the demand (D) curve for water services in the fictional town of…
A: Monopoly refers to a market structure where single firm dominates the market. There is no free entry…
Q: The demand function for a particular item is given by p = D(x) = √163 - 8x dollars. Find the level…
A: The measure of the sensitivity of the quantity (Q) demanded of a product to changes in its price (P)…
Q: Please no written by hand solutions One area of concern when it comes to Starlink is the cost. For…
A: The question at hand raises concerns about the affordability of Starlink, a satellite-based internet…
Q: 1. Should you continue to read it? 2. Would your answer to (a) be changed if (i) it was a gift or…
A: The sunk cost fallacy is a cognitive bias that causes people to continue an endeavor or course of…
Q: A country starts in steady state. Due to a lost war, the country has to give up territory containing…
A: In economics, the expression "steady state" alludes to a condition wherein key economic factors…
Q: Ryan, CFO for Hoffmann, Inc., recently purchased a new delivery truck. The new truck costs $46,000,…
A: To find optimal economic life, we need to find the equivalent annual amount (EAA) of the net cash…
Q: Question 7 Assume that initially FiberOne is the only provider of internet services before January.…
A: FiberOne is the only provider of internet services. So FiberOne is a Monopolist. A monopolist is a…
Q: Two mining companies, Red and Blue, bid for the right to drill a field. The possible bids are $ 15…
A: Game theory now has an extensive spectrum of applications, ranging from financial competitiveness…
Q: 5. Market Power A monopolist has a cost function C(q) = 2q and faces a demand curve p = 10-q. a.…
A: Deadweight loss refers to the economic inefficiency that occurs when the allocation of resources in…
Q: There are two industries, 2 and y, with the following production functions: x= √k₂ + √₂ =(√₂ + √₂)²…
A: The production function determines all the input bundles that produce the same output level.The…
Q: At the utility max point the rate at which a consumer is willing to trade C0 for C1 is equal to 1…
A: The term "intertemporal budget" refers to the allocation of resources or expenditures over time,…
Q: Ginny likes to eat Bertie Bott's Every Flavour Beans (b), and Chocolate Frogs (f). Her preferences…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: The Economic Service Life (ESL) for an the number of years at which the highest cost occurs. O. True…
A: Answer a.The Economic Service Life ( ESL ) for an the number of years at which the highest cost…
Q: Zhu Manufacturing is considering the introduction of a family of new products. Long-term demand for…
A: EMV (Expected Monetary Value) and EVPI (Expected Value of Perfect Information) are concepts used in…
Q: (Figure 15.6) Which of the following Fed actions is most likely to decrease the aggregate demand…
A: Aggregate demand refers to the total demand for all finished goods and services produced in an…
Q: The table below shows cost and revenue information for Choco Lovers, a purely competitive firm…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: Question 22 Crowding out is a reduction in private investment caused by government budget deficits,…
A: Crowding out : Crowding out refers to the phenomenon where increased government borrowing and…
Q: "A free-market economy is withdrawn from government, in other words, it’s privately owned and thus…
A: The discussion post highlights the fundamental differences between free-market and state-directed…
Q: Calculate the marginal revenue from selling the 4th unit of output. Express your answer without…
A: Marginal revenue (MR) refers to the additional revenue generated by producing and selling one…
Q: b) What rent is the firm willing to pay at X=2? c) Suppose commuting costs increase from $1 to $2…
A: Market price : The market price refers to the price at which a product or service is…
Q: xplain how land policy shaped economic growth in the United States
A: Policy can be described as the set of principles, guidelines, rules, or courses of action adopted…
Q: (a) Find the aggregate willingness to pay function for global greenhouse gas seques- tration. Graph…
A: We will do all three calculations list is below:(a) The aggregate willingness to pay function for…
Q: Suppose that the pricing strategies for FiberOne and of Starlink are shown in the table below. They…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: i, the valuation of the object is uniformly distributed on [0,1]. The valuations of the two bidders…
A: Nash Equilibrium:Nash equilibrium is a concept in game theory that describes a stable state in a…
Q: Answer the question regarding the labor market model when r(0) = ²0 and 0 € {1,2} with Prob(0 = 1) =…
A: Given, The reservation wage of a worker with productivity θ is r( θ) = (2/3)θ , and we have two…
Q: Starlink is a satellite-based internet service. It is set to be rolled out elsewhere on the…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: You are part of the Project Evaluation Committee in ProTiga Bhd., one of the automotive manufacturer…
A: Company has a choice between two projects:Project a)Aqcuring cost/ Initial cost = RM1.3 billion =…
Q: exec nis es an salary of secretary a salary of P160,000 a year. A certain task can be performed by…
A: Total cost in economics means the sum of all expenses incurred in the production process, including…
Q: profound impact on labour markets. It will likely lead to enormous gains in productivity (analogous…
A: The labor market refers to to the interaction among employers and workers in the economy. It…
Q: Assume Elias was going to spend all of his time on wristbands but then decides to spend 4 hours on…
A: Opportunity cost refers to the value of the next best alternative that is foregone or sacrificed…
Q: Year 0 123456 2 5 E - $90 20 20 20 20 20 20 F - $110 35 35 35 35 0 0 G - $100 0 10 20 30 40 50 H -…
A: Payback period refers to the length of time required for an investment to generate sufficient cash…
Q: Assume that employment decreases by 3%. Holding all other factors constant, we know with certainty…
A: In the Solow model without technological development, the output is determined by means of labor and…
Q: Long run real interest rates are expected to increase. An accountant and an MBA student (who just…
A: Long-run interest rates represent the inflation-adjusted nominal interest rates observed over an…
Q: How to calculate hourly recovery tariff
A: Hourly recovery tariff, also known as an hourly recovery rate, is a term used in cost accounting and…
Q: The exchange rate is the price of one currency in terms of another currency. An exchange rate…
A: Exchange rate:Currency depreciation is the loss of worth of a currency in terms of another currency,…
Q: Higher gas prices have led to an increase in demand for compact cars that get better gas mileage and…
A: The labor market refers to the interaction between employers and workers, where employers demand…
Q: Joe runs the Service Division for a car dealership. The overall dealership has profit of $10 million…
A: Profit can be described as the monetary gain or positive difference between the total revenue earned…
Q: John Maynard Keynes would agree most with which of the following statements? A. Tax breaks to large…
A: Keynesian economics refers to an economic theory developed by British economist John Maynard Keynes…
Q: Can you give us another Cinderella company successfully breaking into Oligopoly Jungle in the past…
A: The swift rise of digital currencies is primarily fueled by innovations in technology and changing…
Q: 10 01:24:33 Use the following supply and demand graph to answer the question below. Price HG 0 A B с…
A: The demand curve represents the quantity demanded by consumers at different price levels. The supply…
Q: Units Consumed 0 1 2 3 4 Total Marginal Utility Utility 0 W The value for Z is Multiple Choice -10.…
A: The additional satisfaction or benefit derived from consuming or obtaining one additional unit of a…
Step by step
Solved in 3 steps
- Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?What price will a perfectly competitive firm end up charging up the long run? Why?Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
- 24) What are shut-down losses (if the firm shuts down)?Calculate the amount of profit or loss made by this firm at the equilibrium output. State the type of profit.Next question ice and cost (dolars per par) The graph shows the long-run situation facing a producer of running shoes. In the market for running shoes, all the firms face a similar demand curve and have similar cost curves 120- Draw a vertical arrow that shows the firm's markup at the profi-maximizing quantity. Label R. MC t004 What is a fim's markup? /ATC A fem'u markup is the amount by which exceeds OA price; average total cost 60 OB. price, marginal cost OC. average total cost marginal revenue OD. average total cost marginal cost 20- Describe the market of a firm in perfect competition MR O 25 7 100 1is e ths 200 zis Quantity (pain of shoes per week) A firm in perfect competition has OA a markup similar to a firm in monopolistic competition OB. no markup > Draw only the objects specfied in the question Oc. a negative markup O D. a markkup similar to a monopoly
- 3- Conisder the following graph of a firm in the industry to answer the following: MC, ATC Units of Y A. Is this firm working in a comppitive market or monomply? Exp B. Is it working in short or long run? Explain. C. Does this firm achive economic profits, or losses, or breakeven? Explain.The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue isdo 1 2 1 4 5 6 7 A 9 TC MC TVC AVC ATC PRICE 12 14 5 7 10 14 19 t 32 Complete the above table and indicate the profit maximizing quantity of good to produce for the perfectly competitive firm HASRAHAST Below, graph the Demand, MR, ATC, AVC, and MC curves form the data given above. Be sure to indicate the profit maximizing quantity. Is the quantity the same as indicated above? 36 32 28 Perfect Competition Homework Problem 21 /2 8 TR Quity MR PROFIT GETTING STARTED 10 Getting to Know the Professor Q Search
- Q2. a. Create numbers for the table below TC TFC TVC AVC ATC MC 1 4 5 6 7 9 10 b. Indicate a market price that the firm will suffer from loss in the she run? What is the quantity level? What is the TR, TC and profit? Explanation: c. Indicate a market price that the firm will enjoy positive economic profits in the short run? What is the quantity level? What is the TR, TC and profit? Explanation: 2. 3.MC ATC 24 P = MR 20 18 4 100 350 500 700 q Bales of hay from the graph of a perfectly competitive firm above, answer the following questions:# 1. What is the profit maximization level of of output? ( 2. What is the value of ATC at the best level of output? 3. what is the amount of profit the firm makes at that level of output? show your calculations. 4. At what price firm will breakeven В IThe situation facing by firm "Smart", a producer of running shoes, is shown in the following figure. 100 MC ATC 80 60 40 20 MR 50 100 150 200 Quantity (pairs of running shoes per week) a. What quantity does Smart Shoes produce? Answer: b. What is the price of a pair of Smart shoes? Answer: c. What is Smart's economic profit or economic loss? Answer: Why MR curve is below to demand curve Price and cost (dollars per pair) 8