If firms in the market are producing output but are currently making economic losses, P illustrates the present situation for the typical firm in the market, and S v indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. O The total quantity supplied to the market will increase. O The quantity supplied by each firm will increase. O Average total cost will increase. O Marginal cost will increase.
Q: Which of the following would NOT be included in this year's GDP? Select one: Oa. The tuition fee for…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: According to Degree of Integration (Give the definition of each and Examples) Customs Union
A: International trade refers to the free movement of goods and services, jobs, capital, technology,…
Q: You are the manager of medium-sized company that deals in production of make-ups in Ghana. Suppose…
A: There are various other factors that lead to shift in demand and supply curve . Here tax and price…
Q: Consider the following types of firms. For each one, the long-run average cost curve eventually…
A: Diseconomies of scale occur when the per-unit cost of producing goods or services increases with the…
Q: Price (dollars per unit) 600 400 AC = MC De mand Marginal revenue 200 400 Computers (units per day)…
A: Monopoly is a single seller in the market with no close substitutes.
Q: At a price of $100, domestic consumers demand how many boxes of contacts?
A: The combination of price and quantity demanded indicates the quantity that consumer would demand at…
Q: The residents of Greenview spend all of their income on a basket of goods made up of cauliflower,…
A: Inflation rate = CPIt - CPIt-1CPIt-1×100where CPIt is current year consumer price indexCPIt-1 is…
Q: each of the following cases, calculate the values of MPC, decimal places. PW, and the spending…
A: In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate…
Q: A man wishes his son to receive 200 000 pesos ten years from now. What amount should he invest if…
A: There are two periods need to consider . 1st period is the 1st 5 years in which there are different…
Q: The HAC at Humberview has decided to sell Gatorade to raise money. The demand function is described…
A: Profit is maximized where marginal revenue equal to marginal cost.
Q: In a representative Real Business Cycle model, with capital stock in period t+1 defined by
A: Effective investment refers to the net addition to the capital stock of economy which is measured by…
Q: How do intellectual property protections differ between India and China?
A: Intellectual property is a sneak up word for a collection of intangible assets or non-physical…
Q: Consider a perfectly competitive increasing-cost industry with n identical firms. Starting from long…
A: a) n the short run, perfectly competitive firm is all about seeking the quantity in the output and…
Q: What intellectual property distinctive competencies exist for India and China?
A: Patents, copyright, and trademarks, for example, are legal protections that allow people to profit…
Q: Referring to table 1.1, the opportunity cost of producing 10 brushes is... a. 10 combs b. 1 comb C.…
A: The curve that depicts all combinations possible of two goods that could be produced using given…
Q: Should this be collected by retailers when electronic products are sold to consumers, or should it…
A: Rate or return or ROR refers to the actual profit or loss incurred upon an investment for a specific…
Q: 4. Is the Fed out of Ammo? Since the end of the Great Recession, interest rates have been at…
A: When a central bank utilizes its instruments to stimulate the economy, it is known as expansionary…
Q: The famous singer Jason Lumberpond likes to drive his solid-gold rocket car back and forth in front…
A: Coase theorem states that when property rights are clearly defined, perfect competition results in…
Q: Gaynor is the only manufacturer of gas pumps that automatically refill. Gaynor can earn a profit on…
A: In a competitive market firms can earn positive profit in short run but will earn zero economic…
Q: Suppose the government of Mexico runs a budget deficit. This will result in: O A. an increase in…
A: "Budget deficit means government spending exceeds government revenue (through taxes)."
Q: Emily owns a small dress factory. She notices that, when she added her brother to the payroll, the…
A: The measure that depicts the total output amount that a firm could be a product with the amount of…
Q: A monopolistʹs supply of a good is a. independent of the monopolistʹs demand curve. b. given by the…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: A company is planning to install a new automated plastic- molding press. Two different presses are…
A: Given Data, Producing = 120,000 units per year. Non defective units are sold for $0.345/unit.…
Q: 1. A market is described by the following supply and demand curves: Qs = 2P, Qd = 300 – 2P %3D a.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Suppose there is a firm with at least some market power that supplies the same product to two…
A: According to the question, There is a firm with some market power. It supplies one particular…
Q: 3. A Green House Operator is Growing Young Trees to Transplant to Residential Lawns. Over a 6-year…
A: Given, A tree is growing for 6 years (t). Selling price of the tree at the end of Year 6= $7,500…
Q: the summary (below) of project costs and annual revenues for a new product line. He asks you to…
A: *Answer:
Q: Farmer Stella has a crop of hemp to be harvested. Picking the crop requires a fixed number of sacks…
A: The marginal product of labor is the change in total output due to a change in the number of…
Q: An individual needs P 12,000 immediately as a down payment on a new appliance. Suppose that he can…
A:
Q: Using an appropriate diagram of foreign exchange market, explain the concepts of currency…
A: A foreign exchange market is defined as a place where the global exchange of currencies takes place,…
Q: Question 3: Two roommates, Annabel and Brittany, are considering purchasing a coffee-table for their…
A: Introduction Two roommates, Annabel and Brittany are considering to purchase a coffee table for…
Q: Three firms share a market. The demand function is P(q1, 92, 93) = 10 – q1 – 92 – 93, where q; is…
A: We have firm 1 as a leader and firm 2 and 3 as the followers.
Q: 4.. Good news for farming can be bad news for farmers because the a. supply curve for an individual…
A: The farming products that are agricultural goods are considered essential goods. This means demand…
Q: . It is the satisfaction derived from the consumption of a commodity. A. Total utility…
A: Production means converting raw materials into finished goods. It means the goods and services are…
Q: 1. What is the value of ROR (i*) for the following equation? 0 = -20,000 + (29,000 - 21,000) (P/A,…
A: Let us convert above equation into formula based one - 0 = -20,000 + (80000)*1 -(1+i)-4i As , (P/A…
Q: The per-week (inverse) demand for use of the Øresund Bridge between Denmark and Sweden is P = 13 −…
A: Given: The inverse demand function between Denmark and Sweden is P = 13 − 0.15Q During peak traffic…
Q: The Employment Act, of 1955 is the main legislation on labour matters in Malaysia. The Employment…
A: The Employment Act, of 1955 of Malaysia is the main labour rights concerning law of Malaysia which…
Q: Consider a cost sharing problem with three agents who demand 1, 2 and 3, respectively. In general,…
A: (a). Cost of collective demand (cost D) = (x₁+x2+x3)2 Where D = collective demand = x1 + x2 +…
Q: Consider the production function Q = (0.5K1/3 + 0.5L1/3)3 with a corresponding MRTS = K2/3/L2/3. a.…
A: Constant returns to scale occurs when increasing the inputs by some proportion increases the output…
Q: In 2018, nominal gross domestic product (GDP) in the United States grew 5.2% However, inflation was…
A: Nominal GDP is the market value of final goods and services produced during a given period of time…
Q: Compare the short-run Phillips Curve and the long-run Phillips Curve.
A: The economics as a study is based upon the basic idea that the resources which are present with the…
Q: Which of the following is FLASE for an extensive form game with perfect information? O A. All Nash…
A: An extensive form game is a description in detail of the decision problem's sequential structure…
Q: What is a unitary elastic supply?
A: The markets are the place where the buyers and the sellers of various goods and services and other…
Q: The Good Samaritan Game Unfortunately a man had an accident and somebody has to help him. The per-…
A: given information There are people who observes an accident If helps everyone gets 1 pay off and if…
Q: If the actual exchange rate for the euro value of the Australian dollar is higher than the exchange…
A: Exchange Rate is defined as the price of a nations money in relation to another nations currency.…
Q: A local college is deciding whether to conduct a campus beautification initiative that would involve…
A: In order to decide whether to undertake a project or not, the benefit and costs of the project…
Q: When the marginal product of labor equals the average product of labor, then a.the mar d. c. the…
A: Average product refers to total product per unit of labour. Marginal product refers to change in…
Q: How does globalization directly/indirectly affect the GDP of a country
A: The measure that depicts the value of goods and services being produced in a country during a…
Q: How is elasticity measured?
A: Elasticity is an economics term that describes how responsive one variable is to changes in another.…
Q: Define economics and describe the two types of economic systems: capitalism and command economy.
A: Economics is the study of how the scarce resources of society are exploited. It is a social science…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following does not change with the level of output? O Marginal cost O Total fixed cost O Total variable cost Average fixed costA business's marginal cost has a minimum value of $3; its average variable cost has a minimum value of $6; and its average total cost has a minimum value of $7. Given this information, the business should exit at any price below and shut down at any price below Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b с e Question 2 f $3; $6 $6; $3 $7; $6 $6; $7 $3; $7 $7; $34. A puppet maker calculates that the yearly cost of running his manufactory is $14,000. Additionally it costs him $60 to create each of his puppets. The price per puppet is determined by the following price-demand equation: p=500–2x a. Find the Cost equation for the total number of puppets produced and sold Find the Revenue equation for the total number of puppets produced and sold b. c. How many puppets does he need to make and sell to break even? d. Use the Cost and Revenue equations to find the Profit function What is the price that he needs to charge if he wants to sell exactly 80 puppets? e.
- Macmillan Learning (Figure: The Cost Curves for Charlie's Cookie Confections) Use Figure: The Cost Curves for Charlie's Cookie Confections. The curve labeled X represents the firm's Cost per unit marginal O average 0 fixed costs per unit O variable costs per unit. cost curve. V W xह Y QuantitySuppose a local retailer is running the following sale on jugs of detergent: $20 each or 3 for $56. The total cost of purchasing two jugs is. The marginal cost of the third jug is _____. $60; $56 0 $56; $16 $56; $60 $40; $16 O $16; $40 OA price-taking firm makes air conditioners. The market price of one of its new air conditioners is $130. The firm's total cost information is given in the table below: Instructions: Calculate marginal cost, and enter your responses as whole numbers. Air conditioners per day Total cost Marginal cost ($ per day) ($ per day) 1 100 100 2 150 3 220 4 310 5 405 6 510 7 650 8 800 How many air conditioners should the firm produce per day if its goal is to maximize its profit? air conditioners per day.
- The formula for total fixed cost is Select one O A TFC TVC-TC O B. TFC-TC/TVC C TFC=TC-TVC. O D TFC-TC TVCBrody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)
- QUESTION 6 Easy-toothy is a price-taking producer of tooth fairy's sling bags (these are bags for tooth fairies to carry coins and teeth). The following table depicts Easy-toothy's total cost of producing different quantities of tooth fairy's sling bags. Output level Total Cost ($) 0 1 2 13 4 5 10 0000 13 8 00 X 30 50 Which of the following values of x is consistent with Easy-toothy to optimally produce 3 units of output when the price of tooth fairy's sling bags is $10/unit? 17 20 27 There is insufficient information to determine.The following table shows data for quantity (Q), variable cost (VC), and fixed cost (FC) for a ski company. a) Fill the table for total cost (TC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). Make sure to show your work for at least one line. Q VC FC TC ATC AVC MC 30 1 10 30 25 30 3 45 30 4 70 30 100 30 6 135 30 b) Now suppose the firm decides to produce a quantity of 5 units (Q=5), and it sells for a price of $25 each. Answer the following: 1. Calculate the company's profits or losses 2. How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? 3. At the given quantity and price, is the marginal unit produced adding or subtracting to profits? Should the fırm produce at this level of output?Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Larry's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Larry produces, including zero shirts. 125 100 TOTAL COST AND REVENUE (Dollars) 25 ☐ Total Cost ☐ -50 0 1 2 3 4 5 6 7 8 QUANTITY (Shirts) Total Revenue A Profit (?) Calculate Larry's marginal revenue and marginal cost for the first seven shirts he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. 25 2 COSTS AND REVENUE (Dollars per shirt) 0 1 2 3 5 6 7 8 QUANTITY (Shirts) Marginal Revenue Marginal Cost Larry's profit is maximized when he produces is shirts. When he does this, the marginal cost of the previous shirt he…