The long-run equilibrium quantity in a perfectly competitive structure is productively efficient because Select the correct answer below: the price in the market is equal to the minimum of the long-run average cost curve Othat quantity choice is located on the production possibilities frontier Othere is no waste of resources O all of the above
Q: Paula hires Alfred to manage her store. The left column of the table below shows Alfred’s possible…
A: The efforts put by an employee in the production process of a firm, have deep impacts on the cost…
Q: Is the development of economic theory random, or are there causal forces at work? explian
A: An economic theory is a set of ideas and ideals which describe how economies operate. Depending upon…
Q: According to the _____ model, everything else equal, countries with a larger population experience…
A: Since you have asked multiple questions, we are answering only the first question. To get solutions…
Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…
A: There is a significant relationship between the marginal cost curve and average cost curve as the…
Q: explain why does the WTO need to separate Agreement on Agriculture?
A: The Committee on Agriculture oversees the application of the Agriculture Agreement and keeps track…
Q: Assume a fixed MC across the two firms MCA = MCB = 4. Assume further that they both face a mark…
A: Firms under imperfect competition have varying degrees of control over the prices of the products…
Q: Is underdevelopment a domestic or internally induced phenomenon? Explain the implication of extreme…
A: Economic development initiatives are programmes, policies, or actions that attempt to improve a…
Q: Housing is supplied by a competitive building industry. Builders construct housing at different…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose the the demand for a product is given by Qd = 40 − 3P , and supply by Qs = 5 + 2P Suppose…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: Question 44 Under a fixed exchange rate, suppose that the economy initially stays at the long-run…
A: Since you have asked multiple questions, we are answering only the first question. To get solutions…
Q: Should the USA support a global economy or a closed economy?
A: An open economy or a global economy is a type of economy that trades products, services and…
Q: Andrews wants to retire the following bond early: Series 10.4S2033 Face$6,000,000 Yield - 11.2%…
A: Bonds are the one which holds the face value and have the closing value as well. If bond is to…
Q: What is XYZ's marginal cost when the quantity of production is 10 units?
A: Introduction One of the vital components of production is the cost aspect of it. A producer is faced…
Q: what is a fiscal policy what is a monetary policy -give an example in todays economy. thanks for…
A: The central bank's actions to regulate the money supply are referred to as monetary policy. To…
Q: You have the Cobb-Douglas utility function u(x,y) = xy over apples (x) and plums (y) and you have…
A: To construct a set of feasible set of bundle we need to keep both the budget income and weight…
Q: 1. Consider a two-year (T=2) European put option with strike price (K= $52) and the underlying asset…
A: Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: A firm currently produces 500 units at a price of $40. If it earns $1,500 profit, what must the…
A: Profit is the difference between the total revenue and total cost. Profit is given as :- Profit =…
Q: An asset that was purchased for $10000 is expected to be responsive to inflation. The revenue in the…
A: Given: Asset purchased for $10000 Initial year revenue = 4000 expected rise in revenue next 3 years…
Q: Define the concept of scarcity. Explain the significance of this concept in relation to the concept…
A: Scarcity: The scarcity occurs where demand tends to be larger than available resources. Thus,…
Q: Compare the functions of the Federal Reserve district banks with those for the Board of Governors. O…
A: Banks are the financial institutions in any country that aim at building proper relationships…
Q: given froduction function F=K^1/4 L^1/16 price of capital and labor are v and w 1)find short run…
A: In the short run, at least one input is held constant whereas in long run all factors of production…
Q: Japan can make 12 widgets or 16 gadgets in one hour. Britain can make 3 widgets or 9 gadgets in one…
A: Opportunity cost is the cost of producing one good in terms of other good. Opportunity cost shows…
Q: explain the formula in the picture and what the elements stand for? Please answer fast
A: The total amount of money created by central banks in an economy is known as monetary base. It is…
Q: Which of the following ideas would those in favor of protectionist trade policies MOST likely…
A: Protectionism is the strategy used by businesses to defend their own nations from outside…
Q: Paula hires Alfred to manage her store. The left column of the table below shows Alfred’s possible…
A: Since you have asked multiple questions, we will solve the first 3 questions for you. If you want…
Q: Explain the FED role to cope with rising inflation.
A: The Federal Reserve System, also known as FED, is the abbreviation for the American nation's central…
Q: What is cash equivalents?. Define it with the context of economics.
A: Cash refers to the liquid form of currency that can be used to purchase goods and services. Cash can…
Q: Find Alonso's optimal consumption and utility at these prices and income. gc = gc 20, 9p = о дс O gc…
A: Utility function shows the level of satisfaction derived from the consumption of goods. Budgets…
Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…
A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…
Q: Assume firm B's reaction function is: QB = 125,000-0.5QA. Compute for: Firm A's Revenue or R₁ Firm…
A: Under imperfect competition, each firm owns a market share which gives it the power to influence the…
Q: The cost of producing cars in Canada is $30,000, while the cost of producing cars in Mexico is…
A: Trade creation entails new trade that would not exist without the FTA and is always advantageous for…
Q: Explain the concept of limited liability.
A: Introduction liability in business is an owner or a shareholder's duty in case a company becomes…
Q: Suppose you have $100 to invest. You can hold it in cash, you can deposit it in some savings account…
A: Here, three options are available to invest $100. This $100 can be kept as cash, in savings account…
Q: The lower the price in a market, the higher the consumer surplus in that market. O True False
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: Consider a 2-sector macroeconomic model: Y = C + I* C = aY + b = [X]. Express this system in the…
A:
Q: Liberal and Realist perspectives on free trade from a US policy perspective. Are there conditions…
A: According to liberalism, state priorities, instead of state capabilities, are the main determinant…
Q: A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it…
A: "A subsidy is the opposite of tax" because it gives some incentive to the firm or individual in form…
Q: A Romer economy starts at time t=0 with an initial capital stock of ideas equal to 5. The total…
A: Introduction: Romer economy: Romer created the endogenous growth theory, stressing that efforts by…
Q: According to Saskia Sasken, in global cities, there has been a simultaneous increase in demand for…
A: The labor market is the market where the demand for labor and the supply of labor is determined. The…
Q: 3. Suppose the prisoner's dilemma in question 2 is played an infinite number of times. Assume a…
A:
Q: If the absolute value of elasticity of demand for chocolate is 0.64 then the demand for chocolate is…
A: Price elasticity measures the change in quantity due to change in price. Income elasticity measures…
Q: Answer the following questions based on the figures below. (a) Look at figure (a) above. Is it…
A: Bar graphs and time series graphs are tools to display the data visually. Both have a horizontal…
Q: If a country has a floating exchange rate will a rise in exchange rate be bad or good for exporters?
A: Exchange rate refers to the rate at which the currency of a country is exchanged for the currency of…
Q: business sells items according to the following Cost and Revenue functions:…
A: * SOLUTION :-
Q: owns а тоба = 8 + q + 2q².
A: Profit is the reward for bearing the risk. The difference between the Total Revenue and the Total…
Q: Refer to the following payoff table:
A: Dominant strategy is defined as the strategy of the player which remains the same irrespective of…
Q: QUESTION 19 If a company increases production from 1000 to 2000 units and total cost increase from…
A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of…
Q: The biological relationship between the growth for the fish population and the size of the fish…
A: The term "sustainability" refers to the process of reaching current objectives without negatively…
Q: The figure to the right shows the demand and supply curves for the coffee market. The government…
A: Price floor is the government imposed minimum price for a commodity to support the producers.
Q: please use the DDB method A firm is trying to decide whether to keep an item of construction…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?Suppose that ABC firm has 100 hours of labor a day used to produce snacks and swimming classes. The data below presents the maximum quantity of each good produced. Labor (hours) Swimming classes (classes per week) snacks 0 0 or 0 20 4 or 10 40 8 or 18 60 12 or 24 80 16 or 28 100 20 or 30 Explain if ABC firm can produce 8 classes and 28 snacks per week? Suppose that ABC firm produces 8 swimming classes and 18 snacks per week, explain if this production is efficient. Suppose ABC produces 16 classes and 10 snacks a week. Does it face a tradeoff? ExplainAttempts: Average: 12 5. Profit maximization and shutting down in the short run Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. V ATC AVC PRICE (Dolars per watch) 100 5 MO 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY(Thousands of watches) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) Price Quantity (Dollars per watch) (Watches) 25.00 40.00 65.00 Total Revenue Fixed Cost Variable Cost (Dollars) (Dollars) (Dollars) 520,000 $20,000 520,000 (Dollars) If the firm shuts down,…
- 5:23 The amount that a firm pays for all of the inputs that go into producing goods and services is the: O average cost. O total revenue. O total price. O total cost.Dr. D. is a critic of standard microeconomic analysis.In one of his frequent tirades, he was heard tosay, ‘‘Take the argument for upward-sloping,long-run supply curves. This is a circular argumentif I ever heard one. Long-run supply curves aresaid to be upward sloping because input pricesrise when firms hire more of them. And that occursbecause the long-run supply curves for theseinputs are upward sloping. Hence, the argumentboils down to ‘long-run supply curves are upwardsloping because other supply curves are upwardsloping.’ What nonsense!’’ Does Dr. D. have apoint? Explain clearly.Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 60 40 ATC 30 20 MC AVC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $45 per sweater, this firm will choose to produce 45,000 sweaters per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $45 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be thousand per day in the short run. PRICE (Dollars per sweater)
- Hi there. can you please assist on the following question 1. Describe any four requirements for a perfectly competitive goods market.What are the four conditions of a purely competitive market?A 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; $3
- Tips ips The following graph plots daily cost curves for a firm operating in the competitive market for instant pots. 100 PRICE (Dollars per instant pot) 8888 2 2 2 2 10 o ATC AVC MC ㅁㅁ 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of instant pots) Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.) Price (Dollars per instant pot) Quantity (Instant pots) Total Revenue (Dollars) Fixed Cost (Dollars) Variable Cost (Dollars) Profit (Dollars) 25.00 1,600,000 70.00 1,600,000 100.00 1,600,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In…Is the market for Kennedy half dollars competitive? Also why or why don't you think this market is a perfectly competitive market?Briefly explain whether you agree with the following observation: Technological change refers only to the introduction of new products, so it is not relevant to the operations of most firms. O A. The statement is incorrect. Technology includes firm operations such as the skill of its managers. B. The statement is incorrect. Technology includes firm operations such as the efficiency of its equipment. O C. The statement is incorrect. Technology does not refer to the introduction of new products. O D. The statement is correct. O E. Both A and B