Q: When the inflation rate falls from 8% to 2% in an economy, its general price level is rising.
A: The inflation rate is the change in the general price level and it is positive means the general…
Q: 5. ) In industries with exogenous sunk costs, industry concentration decreaseses and apporaches zero…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: A store sells four brands of VCRS. During the past year the following number of sales of each of the…
A: Empirical probability is defined as number of times an event occurs / total number of times events…
Q: 4)Changing the price of a good will usually result in a negative externality.
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: (d) For the market for cigarettes with the tax indicate Price received by producers Quantity of…
A: We have given the graph depicting the market for cigarettes. Initial equilibrium occurs at the…
Q: 7 If the price of Chinese food decreases, there will be an (increase/decrease) in the…
A: Demand is the willingness to buy backed by the purchasing power. The law of demand states that…
Q: There are only two views of advertising: informative and persuasive.
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: • The money sent home by workers who emigrate from a developing country can benefit the country as a…
A: International migration occurs when people cross state borders and stay in the host country for a…
Q: 2. Alice maximizes expected utility with an index u(x) √x where x is the total annual income. Her…
A: In certainty equivalence the preference of the consumer is an assured amount rather a higher return…
Q: Please explain on how you get the Y
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: The figure at right shows the revenue and cost curves for a typical monopolistically competitive…
A: C) In the above diagram, the profit-maximizing condition for the firm is when MR=MC. This happens…
Q: For any given total function, the total is always larger than the average and the average is always…
A: # Total cost is given by the product of average Cost and total quantity. AC = TC/Q And marginal…
Q: c. Calculate how many workers should be hired when wage = 40$ per worker perday and why?, calculate…
A: Firm will keep on hiring labor until wage rate equals MRPL (Marginal product of labor). Firm…
Q: There are a variety of costs to be considered in an engineering economic analysis. These costs are…
A: Disclaimer :- As you posted multiple questions we are supposed to solve only the first one. The…
Q: 3. Player A and Player B can either play up, middle, or down in a simultaneous move game. The payoff…
A: In sequential game where player A has to play first, player 2 can see what player 1 is playing and…
Q: 7. () Below is a list of domestic output and national income figures for a given year. All figures…
A: NDP = GDP – consumption of fixed capital = 365 – 27 = 338
Q: The production possibilities frontier (PPF) illustrates the concept of scarcity
A: According to the given question In simple words we can say that Scarcity is considered an actually…
Q: 24) If the Fed sells Treasury bonds, this will shift the A) money supply curve to the right. B)…
A: Given that, If the Fed sells Treasury bonds what affects money supply and money demand.
Q: 7. ( equilibrium which allows them to relax price competition. ) In markets in which products can be…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 1) In the medium run monetary and fiscal policies are neutral. 2) An increase in the workers…
A: Since you have posted a question with multiple sub-parts, we will solve first three questions for…
Q: Labor required Capital required (person-hours) 200 Method (machine-hours) Т-1 100 Т-2 150 150 Т-3…
A:
Q: 3. There are two chicken fried steak restaurants operating in a small west Texas town: Cow Tipper…
A: The dominant strategy is the best course of action no matter what type of strategy is followed by…
Q: Question 16 Construction cost of the manufacturing plant is considered as overhead cost. (A) True…
A: Cost is the amount of money that is paid in the production process on rent, wages, interest, and…
Q: Humana Hospital Corporation installed a new MRI machine at a cost of $760,000 this year in its…
A: Given information Machine cost (MC) = 76,000 n = 5 Machine sold (MS) = $115,000 Return requirement…
Q: Suppose the bank deposit has 30% annual interest rate. It implies that the purchasing power of…
A: Given, Interest rate = 30%
Q: Give explanation step by step and take a like
A: Step 1:Calculation of better economic choice for Petrobras is shown below: Formula sheet for the…
Q: 3. Consider another Ricardian example, using standard Ricardian assumptions: Labor Hours per Bottle…
A: International trade is the exchange or trade of products and services between various countries.…
Q: Cups of Coffee $6 $5 $4 $3 Demand $2 Osupply $1 $0 Quantity 1. According to the graph above, what is…
A: We have given the demand and supply curve of coffee cups. At a given price, if quantity demand is…
Q: 3. What is the marginal cost of producing the high-quality product? 4. What is the marginal cost of…
A: Price discrimination is the type of price charging policy of the firm. Firm does price…
Q: The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A.…
A: In this case, we have to discuss the elasticity of supply curve here. Supply curve is actually…
Q: 5. MONOPOLISTIC COMPETITION. Determine whether each of the following statements about…
A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only…
Q: Use the data in the table below to answer the following questions: Nominal GDP (in Billions) $14,062…
A:
Q: The following graph shows the market for peanut butter in Dallas, where there are over 1,000 stores…
A: Market equilibrium refers to a state in which the supply of a particular good or service matches the…
Q: 3. Consider the following Prisoner's Dilemma game played 7 times:
A: Given, Two Players : Player 1 and Player 2Player 1 and Player 2 have three strategies : C, D and…
Q: True or false and explain
A: "In a cartel model of oligopoly firms in the industry collude to create formal agreements on…
Q: 82 66 50 38 32 24 16 8 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the…
A: We only answer one question so we will answer the first one. Please submit a new question specifying…
Q: Consider the following table: Year Quantity/Price Good 1 Good 2 Good 3 Total value 1990 Quantity 108…
A: Although you have asked for the solution of d, e and f, the f requires to solve for b as well.…
Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…
A: Disclaimer: Since you have asked multipart questions we will answer the first one for you. If you…
True/False Please explain Why is True/False
Step by step
Solved in 2 steps
- Suppose that the central bank for this economy suddenly and unexpectedly decreases the money supply in an effort to reduce inflation. As a result of this unanticipated policy action, actual inflation falls to 3%. On the previous graph, use the black point (plus symbol labeled "B") to illustrate the short-run effects of this policy. Suppose that now, after a period of 3% inflation, households and firms begin to expect that the inflation rate will persist at the level of 3%. On the previous graph, use the purple line (diamond symbol) to draw SRPC₂, the short-run Phillips curve that is consistent with these expectations, assuming that it is parallel to SRPC₂- Finally, using the orange point (square symbol labeled "C"), indicate on the previous graph the new, long-run equilibrium for this economy. The inflation rate at point C is unemployment rate at point A. the inflation rate at point A, and the unemployment rate at point C is Was the central bank able to achieve its goal of lowering…Coke and Pepsi dominate the cola market. Suppose that the marginal cost of making cola is $2. Assume also that the demand for cola is given by the following table: Price $8 7 6 5 4 3 2 1 Quantity 5 cans 6 7 8 9 10 11 12 Suppose Coke and Pepsi both supply cola. They form a cartel and agree to cooperate on how much soda to produce. In this cartel case, how many bottles of cola would be sold? Type your answer...a) Discuss three parameters for firms operating in an oligopoly market. b) Even when allowed to collude, firms in an oligopoly will choose to cheat on their agreements with therest of the cartel. Why?
- Match the concept with the appropriate description. A tacit collusion situation in which firms behave "as if" they would be in some sort of agreement that seems to coordinate their behaviour. A collusion agreement that requires firms to have some sort of communication in which they coordinate their behaviour. Organization of Petroleum Exporting countries is an example of this type of market behaviour. 1. Explicit cartel 2. Implicit cartel 3. Horizontal merger OCconsider the market for oil. Suppose for simplicity that there are only two oil roducing countries-Saudi Arabia and Kuwait. Both countries must choose hether to produce a low output or a high output. These output strategies with corresponding profits are depicted in the ayoff matrix to the right. Kuwait's profits are in red and Saudi Arabia's are in blue. Kuwait Suppose the two countries form a cartel. What is the cooperative equilibrium? Low Output High Output O A. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a high output. $125 $75 Low Output $8 $13 O B. A cooperative equilibrium does not exist for this game. O C. The cooperative equilibrium is for Saudi Arabia to produce a low output and Kuwait to produce a high output. Saudi Arabia $98 $70 O D. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a low output. High Output $5 $8 O E. The cooperative equilibrium is for Saudi Arabia to produce…Al and Bill operate the only two barber shops in a small town. They might try to form a cartel to charge a high price for hair cuts. The payoffs represent their daily from charging high and low prices. Al's Barber Shop a. b. C. High price Low price d. Bill's Barber Shop High price A $125 $200 Which cell represents a Nash equilibrium? a. C. Low price BA $125 $50 $50 $75 b. d. B $200 $75
- "Set up the oligopoly method and explain the strategies and you reach the nash equilibrium? "1. Consider a market for water with two firms. We assume two firms can produce the good without any cost (TC= 0). The market demand schedule is given as: Quantity (gallon) Price ($) 30 90 40 80 50 70 60 60 70 50 80 40 90 30 100 20 110 10 Cartel: Assume that two firms are colluding, so both firms agree upon a contract that they produce the same amount of output. a. How much would each firm produce if they form the cartel? Why?Please no written by hand solution Suppose two firms compete in quantities (Cournot). Market demand is given by P = 260 − 2Q, where Q = q1 + q2. Both firms have constant MC = AT C = 20.a. Solve for the Cournot equilibrium and find the Cournot equilibrium profits for each firm.b. Now suppose the two firms formed a cartel. What would be the profits for each firm then?c. If firm 2 sticks to the cartel agreement (quantity), then what is the best response for firm 1 (if firm 1 were to deviate)? Find the profits for firm 1 from deviating.d. How large must the probability-adjusted discount factor be in order for the cartel to be stable?e. How would the answer to part d. change if the two firms were competing in prices (Bertrand)?Please answer all steps, because no too much detailed answers required.
- Solve all questions compulsory..For each statement in the left column find and match convenient part from the right column of the table: Write your answer A. The market, represented by a group of sellers, unified by an agreement on its segmentation and final price of the production, is considered as ... 1. ... for the oligopoly B. The situation in which society undergoes losses due to high prices and low output is more typical for ... 2 ... for the price discrimination C. The market in which several sellers can affect and control the price of products in an industry is typical for ... 3. ... for the price competition D. The situation when a different price is given for the same product is typical for ... 4. ... for the market of imperfect competition E. Limited resources is the main factor determining the situation typical for ... 5. ... for the perfect competition F. The absence of the supply curve is typical for... 6. ... for the cartel…What is the primary difference between oligopolistic "coopetition" and cartel behavior? Group of answer choices A. Oligopolistic firms work together to set prices and cartels do not B. One firm has most of the power in oligopolistic coopetition, while cartels share power C. One firm has most of the power in a cartel, while oligopolistic firms share power D. Cartels work together to set prices and oligopolistic firms do not
