assume your price is equal to marginal cost and marginal cost slopes upwards. in the short run, a firms profit max can only lie on the downward sloping part of its marginal cost curve. true or false
Q: Using production function Y = K¹/2 L1/2 and using the information below: What will be the wages of…
A: Since you have posted multiple questions, we will solve the first one for you. If you want any…
Q: Can indifference curves be thick? The figure to the right shows a thick indifference curve Relative…
A: The indifference curve is the combination of different bundles of two goods. All these bundles give…
Q: 1) Which of the following best describes the multiplier effect A an initial increase in interest…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: equilibrium price, and then the demand curve for X shifts rightward. What is the likely outcome of…
A: market cost is the ongoing cost at which an item or a help can be traded and subsequently exchanged…
Q: Suppose that BYOB charges $2.50 per can. Your friend Carlos says that since BYOB is a monopoly with…
A: A company's economic profit or loss is calculated by subtracting its revenue from the cost of all…
Q: Two employees witness fraud committed in their firm. Each has two pure strategies: to become a…
A: Introduction Two employees witness fraud committed in their firm. Each of them has pure strategies:…
Q: Match the following Plastic Options with the correct description. Debit [Choose ] Credit [Choose ]…
A: Answer is given below
Q: A. Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underline word if the…
A: The industrial sector is a category made up of companies that are engaged in making and selling…
Q: Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Economics Based on the image below, the green point represents the endowment allocation. -2 Ов 6 4…
A: Edge worth box represents the 2×2 economy. Where there are 2 individuals with 2 goods.
Q: What is the GDP for a country where consumption spending is $400 billion, gross investment is $125…
A: Answer: GDP=C+I+G+X-MWhere,C=consumption spendingI=InvestmentG=government…
Q: Monopoly: Fantastic Films is the only movie theater in an isolated town. The table below illustrates…
A: Total revenue is defined as the product of the price and quantity of the goods. Marginal revenue and…
Q: Suppose the economy produces real GDP of $60 billion when unemployment is at its natural rate. Use…
A: In the short the the supply curve is AS which is directly proportional to the price level but in the…
Q: O Price level increases, GDP increases O Price level increases, GDP decreases O Price level…
A: Stimulate package is announced by the government to combat the recessionary pressures. The…
Q: If we express money flows in current dollars ($A), the interest rate to use to determine present…
A: If the money flows are expressed in current dollars term, the present value in economic analysis is…
Q: Is there any e-business apps that you would suggest to a small business in order to help it survive…
A: e-business is functioning very well during the pandemic, whether it was small or big business…
Q: 6. Describe how public choice economics model the behavior of various political actors (citizens,…
A: "Economic tools" are employed in public choice theory to answer "classic political science problems"…
Q: Antitrust legislation in the United States is contained in the of 1914 and the Act of 1914. Onone of…
A: The laws whose main purpose is the promotion of competitiveness, fairness and regulation of…
Q: Consider the table below: TC TR MR AR-P 0 0 0 0 1 900 900 1.200 $1200 2 1600 2100 900 1050 3 2100…
A: Answer; Option c is correct.
Q: Mrs. Dolly Bugtong plan to travel abroad with her family. What amount should she save at the end of…
A: Given : Interest = 1.44% Future value of accumulated amount = 250,000 Time Period = 250000 Here, in…
Q: Q7
A: The total revenue will increase or decrease it depends on the elasticity of demand and the direction…
Q: Price P₂ Pi C P D Quantity Q₁ Q₂ Q₁ If a price floor in this market is set at P₁, then OA)…
A: A price floor usually exists when the price charged is more than or less than the equilibrium price…
Q: which regulate monopolies. Owhich regulates mergers and cartel formation. which ensure that…
A: The definition of competition policy itself depicts the answer to this question which says that it…
Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…
A: Economies of scale:- Economies of scale can be explained as the cost advantages that businesses gain…
Q: When a firm has a natural monopoly, the firm's Omarginal cost curve must lie above the firm's…
A: a natural monopoly occurs when a firm enters with a very high start-up cost and high market power…
Q: Why did the southern slave owner, who represented such a very small portion of the total population…
A: Human chattel slavery was widely practised as an established legal institution in the United States…
Q: How might special interest groups and lobbyists influence campaigns and elections? Group of answer…
A: SIGs or Special interest group is a community formed by individuals with a shared interest in a…
Q: Suppose Fantastic Films charges a single price for all tickets. Identify the monopoly outcome (PM,…
A:
Q: If a binding minimum wage is implemented in an economy, we can expect. to decrease, resulting in…
A: Supply is an essential monetary idea that depicts the aggregate sum of a particular decent or…
Q: 3. What are the differences between the internal and external economies of scale?
A: When it increases its level of output, it often experiences some cost advantage, referred to as…
Q: Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the…
A: Answer;
Q: There are two consumers and two goods (A and B) in a competitive economy. At the competitive…
A: Individuals (consumers) directly involved in the acquisition, use, and disposal of economic goods…
Q: 1. Use the assignment method to determine the best way to assign workers to jobs, given the…
A: Introduction For profit maximization, convert it into minimization problem by subtracting all the…
Q: Derek and Maria are now trying to predict how much money they will raise for their club from the car…
A: Profit = Total Revenue - Total Cost r(x) = 10x + 50 c(x) = 0.5x + 220 Profit = P(x) = r(x) - c(x)
Q: What does a declining national debt indicate? Group of answer choices The government is…
A: The sum of all obligations due by a country's government is referred to as the national debt.Bonds…
Q: Your firm has a retirement plan that matches all employee contributions with employer contributions…
A: An employee contribution plan is a kind of business-supported reserve funds plan. By deciding to…
Q: O elastic
A: Elasticity of demand depends the responsiveness in quantity demand change due to price change. If…
Q: Consider the market for lead batteries. Market demand is described by the inverse demand curve, P =…
A: Market demand is described by the inverse demand curve which is given as:- = P = 200 - 2Q where P…
Q: What are the items that make opportunity cost differ from the accountant's measure of cost? A firm's…
A: A firm's opportunity cost is the cost foregone in terms of the next best alternative to pursue the…
Q: Jack Sparrow's utility function is UJack(W, B) = W. His wife's utility function is Uwife(W, B) = B.…
A: Elizabeth's Utility function : Ue = W Endowment : W , B = ( 16 , 5 ) Husband's Utility function : Uh…
Q: Complete the numbered boxes on the following table, by writing the word or words needed to…
A: The central bank uses the monetary policy to check and balances the inflation rate, interest rate,…
Q: In his State of the Union address in 2003, President Bush supported the idea of changing from the…
A: The study of the financial effects of environmental policy is known as environmental economics.…
Q: hould .trade movie tickets for basketball tickets because his marginal utility per dollar spent on…
A: Marginal utility is the additional fulfillment that a customer gets from having another unit of a…
Q: Question 9 If income decreases and prices are unchanged, the consumer’s budget constraint...…
A: Income decreases: It means purchasing power has fallen. At the same prices, the consumer can buy now…
Q: In an economy with perfect income equality the Gini coefficient would be
A: The Gini record, or Gini coefficient, measures pay appropriation across a populace.
Q: Briefly define economic growth
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: COMPUTE THE NOMINAL GDP
A: A country's nominal GDP is determined using current prices and is not adjusted for inflation.…
Q: Prospect X = ($4, 0.04 ; $15, 0.05 ; $24, 0.01 ; $38, p) What is the expected value of prospect X?
A: Given prospect Prospect X = ($4, 0.04 ; $15, 0.05 ; $24, 0.01 ; $38, p)
Q: The following equations describe a certain economy C=200+0.75Yd consumption function I = 100-50r…
A: Answer is given below
Q: The population of Czechia is ageing quickly and the old, who spend a relatively small proportion of…
A: Answer - GDP (output) :- It is the sum of all the goods and services produced in a country in a…
assume your price is equal to marginal cost and marginal cost slopes upwards. in the short run, a firms profit max can only lie on the downward sloping part of its marginal cost curve.
true or false
Step by step
Solved in 2 steps
- Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?Firms in an industry have the following cost function: C(q)=3q3-6q2+4q. If the market is perfectly competitive, what do we expect the price to be in the long run? Select one: a. 2 b. 3 c. 1 d. 8Suppose, at a given point in time, Lynn's Licorice Loft sells licorice in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production Lynn's average total cost of producing licorice is $1.20, her average variable cost is $1.00, and her marginal cost is $1.30. Over time, the number of licorice sellers in the market will....
- What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere? Construct a concrete cost function of this type and carry out the search for the profit-maximizing output.Problem 2.5 The cost function for Acme Laundry is TC(q) = 10 + 10q + q^2 so its marginal cost function is MC(q) = 10 + 2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5
- In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its average variable cost is downward sloping, what can you say about slope of average total cost?The relationship between the firm's average variable, average total, and marginal cost curves above: Marginal Reveue = Price = US $ 2.50 ; a) Use the graph to find the Firm's profit-maximizing output. b) If the firm maximizes its profit, how much profit does it make (about)? Should the firm stay in business? c) Will other firms with costs the same as Firms enter the market? Explain.a) Suppose in the short-run, the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make? Using an isoprofit line, as well as the production function, draw a diagram of your solution and label all the intercept and slopes b) In the long-run, how many mixers should she use? How many machines? How many baklavas will she make? c) Suppose that the government decides to provide a $1 subsidy per mixer. What is the profit-maximizing amount of each input to use now?
- “The firm’s entire marginal cost curve is its short-run supply curve.” Is the preceding statement true or false? Why?Suppose an avocado farm has cost: C = 0.002q3 + 22q + 750 (where q is measured in bushels). Marginal cost is: MC = 0.006q2 + 22. The market price per bushel of avocados is $46. In the short-run, this firm's profit is In the short-run, this firm's profit is enter your response here. (Round your response to the nearest penny.)The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including number of firms, is possible. We have identical firms, each with a Total Cost curve of TC=862+q^2 and Marginal Cost curve MC=2q. Market demand is Q=856-2P. What is the number of firms in the market in the long run equilibrium?