Microeconomics divides costs in to “short-run costs” and “long-run costs”. Can “long-run” differ between firms? Include a short example in your answer.
Q: A company manufactures products in batches of 200 on one machine. If the company works 8 hours per…
A: Batches of Machine = 200 company work. 8 hrs, 5 days per week
Q: Determine Nash equilibrium
A: Nash equilibrium is the equilibrium in which both the players have the best strategies. We can find…
Q: Assume that two companies (A and B) are duopolists that produce identical products. Demand for the…
A: Profit maximizing quantity of output is the long-run equilibrium output. And, Profit maximizing…
Q: Question 5 In a monopolistically competitive industry, a firm’s demand curve also represents its...…
A: Monopolistically competitive industry has many firms. Their products are almost similar (close…
Q: Question four A firm's production technology 40 = 10K0310.7 and capital costs K3 per week while…
A: "The cost minimizing input combinations of capital K and labor L occurs at a point where the ratio…
Q: Angela and Theresa visit a sporting goods store to buy a new set of golf clubs. Angela is willing to…
A: Given information: The price that Angela is willing to pay = $750 The price that Theresa is willing…
Q: Company 2019 Gross $4,250,000 Revenue |Company 2019 Gross $1,620,000 Profit Annual Retention Rate…
A: Customer lifetime value is thus a measure of revenue generated during a customer's lifetime.As a…
Q: What is the relationship between production costs and comparative advantage? Comparative advantage…
A: "When the world price of a commodity is less than the domestic price of a good, a country becomes an…
Q: Sharlene, the risk manager of Chief Rocking Records, has been asked to assist the corporate strategy…
A: * SOLUTION :- From the given information the calculations are shown below as
Q: When a monopolistically competitive industry is in long-run equilibrium: choose correct and explain…
A: Monopolistically competitive industry has firms which have freedom to entry and exit.
Q: What is the opportunity cost in economics?
A: Opportunity costs are the advantages a person, investor, or corporation loses by selecting one…
Q: Megan and Martha own competing hair salons that are in the same neighborhood. They are both…
A: If they provide discounts to their consumers, the reward matrix depicts their annual income in…
Q: At the moment, Marge uses 16 labour hours and 16 hair dryers. Suppose that Marge can use any amount…
A:
Q: ) For a monopolistically competitive firm, Group of answer choices average revenue and price are…
A: Monopolistically competitive firm is a firm in which there is a large number of buyers or sellers…
Q: A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost…
A: "A perfectly competitive firm is a firm which is price taker. In perfectly competitive market there…
Q: Your economist friend told you that because of the change in demand described in part (c), price…
A: Price elasticity of demand refers to the percentage change in quantity demanded with respect to the…
Q: Assume that the firm’s minimum average variable cost is £6.5. Should the firm continueoperating in…
A: Variable costs are such costs which are implied over variable factors such as electricity, labor…
Q: Assume we are in a Ricardian world, where there are 2 countries: Home and Foreign, 2 goods: x and y,…
A: The relative price of good X = units of good Y produced / units of good X produced
Q: ABC Computer Company has a $20 million factory in Silicon Valley in which in builds computer…
A: * SOLUTION :- From the given information the answer is provided as below as ,
Q: rate A) the banks charge individual investors for Fed funds. B) the banks charge each…
A: *Answer:
Q: Which of the following statements is true? a. In a finitely repeated prisoner’s dilemma, players…
A: Nash Equilibrium: A Nash equilibrium refers to one in which no one can get better without making…
Q: [Basic static analysis of trade] Construct a simple model of the (wholesale) market for wheat…
A: Wholesale markets increase food distribution efficiency by fostering competition by enabling…
Q: Think about two products, beef and chicken. What kind of sign ( positive or negative) the cross…
A: Cross price elasticity is the ratio of %change in Qd(quantity demanded) of a product and the %change…
Q: c. What does the Demographic Transition meam?
A: c) Demography refers to the concepts and methods used to examine human populations.
Q: an economy where the various components of expenditure follow these equations: C = 10 + 0.8Yd I =…
A: A) Y= C+I+G+(X-M) Y= 10+0.8Yd+500+100+(300-0.1Y) Y= 10+0.8(Y - T)+500+100+(300-0.1Y) Y= 10+0.8(Y -…
Q: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
A: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
Q: In the midyear of 2020, a country’s population is 109,581,078 with a growth rate of approximately…
A: country’s population is 109,581,078 rowth rate of approximately 1.35% per year
Q: Suppose an avocado farm has cost: C = 0.002q3 + 22q + 750 (where q is measured in bushels).…
A: Given an avocado farm: C = 0.002q3 + 22q + 750 .... (1) Marginal cost: MC=0.006q2+22 ... (1)…
Q: 1. Consider the following information for Dhaka Water Supply Authority (WASA). Total revenue…
A: We have given Quantity (1000s of liter) Price (in taka/liter 0 11 1 10 2 9 3 8 4 7 5…
Q: (f) Regression line drawn by the method of Least square is called as the line of (g) Link Relatives…
A: (f) Regression line drawn by the method of Least square is called as the line of best fit .…
Q: Question 3 Which of the following is not an example of a barrier to entry? Group of answer choices…
A: Barriers to entry are defined as factors that can prevent new firms to enter the industry to limit…
Q: Your firm is contemplating the purchase of a new $540,000 computer-based order entry system. The…
A: Cash flow extracted from the regular business processes is the operating cash flow. It is one of the…
Q: (b) Using a diagram to help your explanation, illustrate and explain the point at which a monopolist…
A: A monopoly is a market system in which only one seller sells to a large number of customers.The…
Q: 1) Use the graph to answer the question. Between points C and D, the long-run average total cost…
A: As per the guidelines answer is given to the first question. (1) "Long run average total cost curve…
Q: Melody Music Store has a total cost function of TC = 500 + 10Q + 5Q?. (a) Find the firm's fixed…
A: Total Cost is defined as the sum of Fixed Costs plus Variable Costs. Fixed Costs are those costs…
Q: 3. Consider the following table that presents the labour requirements for production in the East and…
A: Given, Labor requirements for production in the West and East (labors hours per unit of output):…
Q: What is the difference betw een the Keynesian model and the classical model when it comes to…
A: The Classical Model suggests that the economy is always at the full employment level of output,…
Q: Selling Price Workers Total Wage Rate Per Day Output $75 $20 1. 16 $75 $20 28 $75 $20 37 $75 $20 4…
A: The measure that depicts an extra amount of output that is being produced from utilizing one…
Q: Question 23 Refer to Table 6-1 in Question 21. Increasing the size of its store and parking lot is a…
A: "A dominant strategy is the optimal strategy for a player among all the competitive strategies no…
Q: What are the types of Inflation?
A: Inflation is said to a sudden rise in the prices of the goods and services over a period of time in…
Q: In the last year there has been a significant increase in the inflation rate in Canada. Use the…
A: Transmission mechanism refers to the process where monetary policy affects and influences the…
Q: Hi! What would a and b look like if illustrated in a graph?
A: Given:- Qd=1600-300P Qs=1400+700P To form:- Graphs for part(a) and (b)
Q: You find that both the US and ECB treasury yield curves are backwardated. This is suggestive that:…
A: In some aspects, the current predicament mimics Greenspan's bond crisis.This time around,…
Q: 1-Which of the following is an example of frictional unemployment? A mother who has gone back to…
A: Let's first learn about frictional unemployment. It is a type of Economy which can even take place…
Q: A present amount of 5300 is invested into an account, which can be withdrawn after the end of 12.8…
A: The equivalent uniform annuity would be equivalent to growing annuity when both present value are…
Q: Suppose an economy consists of a union and a nonunion sector. The labour demand curve in each sector…
A: The labor market is the market in which the equilibrium wage rate and equilibrium quantity of labor…
Q: Q, = 160,000–2000P and Qs=40,000+2000P, where Q, is the quantity demanded in 100-pound lots, Q, is…
A: At the point when the production of a decent influences an outsider in either a positive or a…
Q: A USA Today/CNN/Gallup survey of 363 working parents found 204 who said they spend too little time…
A: Given, Favourable cases (x)= 204 Sample size (n) = 363
Q: Refer to Figure 6-2. What price will the monopolistically competitive fırm charge in this market?…
A: The main features of monopolistic competition are: 1. Large number of buyers and sellers 2. Product…
Q: n the short run, a perfectly competitive firm can Select one: a. earn an economic profit. b. earn an…
A: In a perfectly competitive market, the firm is a price taker and there is free entry and the exist…
“long-run” differ between firms? Include a short example in your answer.
Step by step
Solved in 3 steps
- Let's play around with the concepts of total cost versus marginal cost Suppose a grocery store figures out that it costs $500 per week to hire a full time worker who can fill pickup orders. Create a table with room for 5 columns and 6 rows in your notes Use the top row for titles. The first (left) column should be titled Number of Workers and should have 0, 1, 2, 3, 4 as values. We're going to analyze whether the store should hire 0, 1, 2, 3 or 4 workers. Title the next column Total Cost (TC) and the third column Marginal Cost (MC). Put an X in the MC square corresponding to 0 workers. That would be the cost of going from negative 1 workers to 0 workers, let's leave it blank YOu'll see that marginal columns tend to start across from the first unit. We'll use the remaining columns later. What is the Marginal Cost per week of hiring the 4th worker? $500 O $1,000 O $1,500 $2,000If the marginal cost is increasing, do you know whether average variable cost is increasing or decreasing? Explain.Why is having a business objective of increased economies of scale always desirable?
- How does the impact of fixed costs change production decisions in the short run and in the long run? Use the average-total-cost (ATC) model to demonstrate this impact.Why is economic cost known as opportunity cost? What are included in economic costs?Give an quantitative example of marginal and average cost.