38) Table 16-1A monopolistically competitive firm faces the following demand curve for its product:Price (S)Quantity109.8.6.431246.101214161820Refer to Table 16-1. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will happen?Select one:O a. It will produce 6 units; firms will exit the market in the long run.cross outO b. It will produce 4 units; firms will enter the market in the long run.cross outO c. It will produce 2 units; firms will exit the market in the long run.cross outO d. It will produce 8 units; firms will exit the market in the long run.cross outO e. It will produce 6 units; firms will enter the market in the long run.cross outf.It will produce 8 units; firms will enter the market in the long run.cross outO g. It will produce 4 units; firms will exit the market in the long run.cross out

Price Quantity Total revenue Marginal revenue Marginal cost 10 2 20 NA 5 9 4 36 8 5 8 6 48 6…

A monopolistically competitive firm faces the following demand curve for its product Price ($) Quantity 10 8. 7 8 6. 4 1 2 4. 6 10 12 14 16 18 20 Refer to Table 16-1. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will happen? Select one: O a. It will produce 6 units; firms will exit the market in the long run. cross ou

A monopolistically competitive firm faces the following demand curve for its product Price ($) Quantity 10 8. 7 8 6. 4 1 2 4. 6 10 12 14 16 18 20 Refer to Table 16-1. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will happen? Select one: O a. It will produce 6 units; firms will exit the market in the long run. cross ou

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.(a) What important policy debates provide the background for Malthus’ work? (b) Explain Malthus’ population theory. What policy implications did Malthus draw from this analysis?
56. A firm sells its output in a perfectly competitive market and hires two inputs, capital and labor, in perfectly competitive factor markets. The product price is $15 per unit, the wage is $75 per day, and the marginal product of capital is 3. If the firm is choosing the least-cost combination of labor and capital, the firm's marginal product of labor and the price of capital must be equal to which of the following? (A) (B) (C) (E) Marginal Product of Labor Price of Capital 23555 $5 $45 $15 $25 $45
(Q1) Many software companies, after years of providing unlimited free telephone technical support for their products, began to charge for these services (typically after an initial start-up period of 90 days). Most companies offer two pricing plans. For instance, Lotus Development offers users of their spreadsheet software the option of paying either (i) $2.00 per minute for telephone support or (ii) a $129 flat charge for a year of unlimited toll-free calls. Question 1: Consider a customer with a yearly (expected) demand for service support of P = 11 – 0.1Q, where P is the price per minute and Q is the number of minutes of calls made per year. How many calls would this customer make under plan (i)? Why? How many calls would he or she make under plan (ii)? What would be the annual cost to this customer under each plan? Explain your answer. Question 2: Which plan would this customer choose? Explain your answer.
19. (Use this information to answer qustion 19 - 23) Suppose there is one firm solving the following profit maximization problem. Note that the output price is normalized as 1. max AL¹-a {L} wL where A = 2 and a = 0.6. How much is the aggregate labor demand when the wage is 1? (a) 0.242 (b) 0.435 (c) 0.689 (d) 0.923
Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality. Take care of plagiarism. Answer completely. You will get up vote for sure.
6. Who should pay the tax? The following graph gives the labor market for laboratory aides in the imaginary country of Episteme. The equilibrium hourly wage is $10, and the equilibrium number of laboratory aides is 150. Suppose the federal government of Episteme has decided to institute an hourly payroll tax of $4 on laboratory aides and wants to determine whether the tax should be levied on the workers, the employers, or both (in such a way that half the tax is collected from each party). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the…
5. (a) Assume that two firms A and B are in different industries (like computer software and computer hardware). What impact will a merger between these two firms have on the number of firms in each industry after the merger? Please give an explanation. (b) Current automobile companies are facing a shortage of computers chips used in cars to run various parts of the car, and therefore supply of cars has decreased since a necessary part(s) is not available. If an auto company like General Motors (GM) decided to buy a chip manufacturing company to ensure that it did not face a chip shortage in the future, would such a purchase lead to more concentration in either the auto industry or the chip-manufacturing industry? Please give an explanationexplanation.
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
2. (a) What does the index of intra-industry trade measure and does it tell us anything about the total amount of trade? (b) There are two ways of measuring the degree of intra-industry trade within an industry: min (imports, exports) Index of intraindustry trade = 1 2 (imports + exports) -(lexpe (lexports - imports| exports + imports Grubel Lloyd index = 1 - Using the first formula, calculate the index of intra-industry trade for the U.S in 2014 for the products on Table 1. Using your answer in (b) above, what does the index of intra- industry trade of men's shorts, large passenger aircraft, telephones and golf carts tell us? (d) What are the two necessary conditions to obtain a high index of intra-industry trade?
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