Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is (ii) Yann's variable profit is (iii) The producer surplus is If Yann also has a fixed cost of $50, then: (iv) his total profit is Assuming Yann cannot avoid the fixed cost, Yann should
Q: Suppose that Pokhara acquires customer-specific information through (costless) market research and,…
A: A monopolist can charge different prices to consumers, if it knows the consumer's valuation. The…
Q: Suppose someone’s cost of going to the ATM is $1.50, there is a 12 percent probability of having his…
A: Opportunity cost is still an important concept in current microeconomics since it helps people make…
Q: Firm will exit a monopolistically competitive market if: Omarginal revenue is greater than marginal…
A: We have to see the case in which firm faces loss
Q: Quantity 0 1 2 3 4 5678 No 9 10 TC TFC TVC ATC AFC 20 13 52 32 8 53 63 29 AVC 8 6.5 What is average…
A: Before selling the good to the market, one has to produce it. Production of the good has various…
Q: The second column shows Shane’s marginal value schedule, which is also his demand schedule when he…
A: The producer surplus signifies the difference between the sum that a producer intends to accept…
Q: State A has a total population of 10 million, of which 70 percent are adults (civilian…
A: Labor force = total number of eligible population who is willing to work labor force participation…
Q: Two drivers – Tom and Jerry – each drive up to a gas station. Without looking at the price of gas,…
A: Price Elasticity of Demand:In an economy, it is normal for the demand and prices of goods and…
Q: Considering the actors (i.e., two shipping lines and the port authorities) and the predetermined…
A: The Cournot Nash equilibrium is a concept in game theory that describes a situation in which two or…
Q: Which of the following statements is correct? A. If there is a surplus, prices will fall B. A…
A: A surplus is a situation in economic market and occurs when the quantity supplied of a particular…
Q: 42000 25 10 Max's PPF Good x EVERERA NO 30 21 Milly's PPF 1. What is the opportunity cost of…
A: Opportunity cost is the decrease in the production of one good needed to produce more of the other…
Q: The table below represents the combinations of beef and corn produced on a tract of land of a given…
A: The combination of producing two different items at a given quantity of resources is shown by the…
Q: Walter makes a sequence of annual deposits into an account paying an effective rate of interest of 9…
A: The first deposit a= $600Every next deposit is 150 larger than previous one d= $150Size of n =35th…
Q: 2. Determine the elasticity when the price of a product is lowered from $50 to $43 while the…
A: The price elasticity of demand is the measurement of the change in the demand for the products or…
Q: Linguini and Colette consume only éclair (x₁) and profiterole (x₂). Linguini has utility function UA…
A:
Q: Typical Commercial Risks covered by an Export Credit Insurance policy include (#,#,#) while…
A: Commercial risk is the risk a business assumes when it extends credit without any security.…
Q: Which of the following are "real" variables? All of these Salary purchasing power Quantity produced…
A: Real variabe refers to a variable that has been adjusted for inflation or any other nominal…
Q: e following graphs show an economy's initial position at point B along its consumption function C.…
A: Consumption function shows a positive relationship between consumption level and disposable income.A…
Q: Create two new demand and supply diagrams to demonstrate the following: In your first diagram, show…
A: A negative consumption externality occurs when the consumption of a good or service by one person…
Q: A consumer has $300 to spend on good X and Y. The market price of these two goods are Px=$50 and…
A: The budgetary constraints are significant in economics due to the fact that they establish the…
Q: There are two firms in the blastopheme industry. The demand curve for blastophemes is given by p =…
A: A cartel is a formal or informal agreement among a group of independent entities, such as businesses…
Q: Without Trade Production Consumption With Trade Production Trade action Consumption Gains from Trade…
A: With international trade each country specializes in the goods in which they have comparative…
Q: QUESTION 7 Figure 14-4 PT P6 2 B$ P3 P2 Pl Price MC Q1 Q2 Q3 Q4 Q5 ATC AVC Quantity Refer to Figure…
A: Competitive market has many firms producing identical goods. This makes the firms price takers as…
Q: Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its…
A: Price elasticity of demand measures the responsiveness of a commodity to a change in its price.…
Q: True or False: In the bond market, increased inflationary expectations result in the increase in the…
A: Inflation refers to the increase in the level of price. Higher inflation leads to unemployment and…
Q: A monopolistic competitive firm. a)As presented in Exhibit, the long-run profit-maximizing output…
A: A monopolistic industry is a combination of perfect competition, where there are a lot of buyers and…
Q: Although they are often unpopular with the public and there are many comments the public and there…
A: Bureaucracy is a game plan of administration depicted by a hierarchy of authority, fixed rules and…
Q: (Advanced analysis) The demand for commodity X is represented by the equation P=10 - 0.2Q and supply…
A: Demand:Demand refers to the quantity of a good or service that consumers are willing and able to…
Q: Which of these are direct materials Sandpaper and other like kind items of minor cost used in…
A: Direct materials are the physical components that go into a finished product. They are easily…
Q: Bank leverage Use the information presented in Southwestern Mutual Bank's balance sheet to answer…
A: The total amount of money and other liquid assets that are currently in use in an economy's…
Q: Suppose Martha and Julia both work at a bakery making bread and muffins. In an hour, Martha can…
A: The word "opportunity cost" is used in economics, and it comes from the logical assumption that…
Q: (Exercise 1.8) If A(3) =$3000 and in = 0.01n, find A(5).
A: Calculate the amount in the account after 3 years. We do this by multiplying the initial amount,…
Q: A. Consider a monocentric urban economy in which every household has the same income and the same…
A: Commuting expenses are crucial in determining housing prices in a monocentric urban society with…
Q: The following equation relates the natural log of wages, W, to risk, R, and a vector of covariates,…
A: lnW = bo +b1*R + C*X.W=30000Change in risk=1/3000b1=0.15
Q: 1. Consider the following utility function for consumer i, who consumes two goods, namely x and y…
A: Consumer i only consumer two goods x and y. The utility function is given as…
Q: Imagine a firm’s marginal abatement cost function with existing technologies is: MAC = 24 – 2E. If…
A: The firm will abate 12 units of emissions because the marginal abatement cost of the new technology…
Q: When I took the PRCA my scores were much high than the other two tests and I know that this test is…
A: Yes, familiarity has become a major factor for better communication
Q: A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q)…
A: Profit maximization refers to the process of producing the level of output at which the firm will…
Q: Part 2: More Practice- Assume that the economy of Econland can produce robots (capital goods) and…
A: PPF stands for the production possibility curve. It is a graphical representation of all possible…
Q: Gina loans George $1,000. George agrees to pay her $1,100 next year. They both expect an inflation…
A: Real interest rate = nominal interest rate - inflation rate
Q: A Explain the Keynesian transmission mechanism, and use graphs to illustrate B Suppose that…
A: The Keynesian transmission mechanism is a model of what monetary policy means for the economy. In…
Q: Managed trade-agreements, sometimes temporary, between countries (or a group of countries) that aim…
A: Socioeconomic rationale refers to the economic and social justifications behind a particular policy,…
Q: Toselli Animation plans to offer its employees a salary enhancement package that has revenue sharing…
A: We need to find the equivalent annual worth of the bonuses paid to the employees where the bonus is…
Q: PROBLEM (6) A consumer's preferences over pizza (x) and steak (y) are given by u(x,y) = x²y (HINT:…
A: The optimal bundle when px = $8 is (15, 20). This can be calculated by setting the marginal…
Q: Part 2 of 4 The following diagram illustrates the situation in the dry cleaning market. The marginal…
A: Private Marginal benefit( PMB) refers to additional benefit a consumer receive when an additional…
Q: Suppose that customers are uniformly distributed along a street which is represented by the unit…
A: A new market potentially enters the scene, when it can recover the cost of entering the market…
Q: Refer to Exhibit 2-1. The PPF illustrates constant opportunity costs between guns and butter. O that…
A: It can be defined as the graphical representation that shows the maximum amount of combination a…
Q: Explain the short term equilibrium under perfect competition
A: A market structure where there are many buyers and sellers, all offering identical products, with no…
Q: Triniland is recognized as a high-income economy by the World Bank. Assume that households in…
A: Macroeconomic monitoring will continue to be critical since it determines the economy's eventual…
Q: 2. Is the value of a house built in 2000 and resold in 2013 included in the GDP of 2013? Briefly…
A: The total economic final products and services generated inside a nation and year are tallied as…
Q: Good outcomes for an economy include Select one: a. low GDP, low inflation, and low unemployment. b.…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Answer Box: -5,0,3,5,10,30,45,50, continue to produce, shut down, Other
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 23 images
- Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is 3 (ii) Yann's variable profit is (iii) The producer surplus is If Yann also has a fixed cost of $50, then: (iv) his total profit is Assuming Yann cannot avoid the fixed cost, Yann shouldKenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q: (i) The profit-maximizing level of output is _____ (ii) The variable profit is _____ (iii) The producer surplus is _____ If Kenan also has a fixed cost of $50, then: (iv) The total profit is _____ If Kenan cannot avoid the fixed cost, Kenan should _____ Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, otherYann's bakery operates in a perfectily competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC 0. 19 () Yann's profit-maximizing level of output is 0 (1) Yann's variable profit is 0 (H) The producer surplus is 0 If Yann also has a fixed cost of $50, then: (Iv) his total profit is Assuming Yann cannot avoid the fixed cost, Yann should 0
- The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ NumberThe inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…Your firm "We Work Eot U" rents access to shared open office spaces for a price of S540 per year. The market is perfectly competitive as consumers have many of these "We Work" rental companies to choose from. Your firm's total revenue function is written: TR = (540) Q. The total cost function is written: TC = 80,000+ 40Q + 0.5Q? a. To maximize profits, what is the optimal number of office spaces to rent? Show your work. b. How much (in dollars) are total profits at the profit-maximizing output level? Show your work. c. In the long run, assuming no barriers to entry and exit into this industry, what will happen to profits and to the market price?
- A firm's demand function is Q = 16 -P and its total cost function is defined as TC = 3 + Q+ 0.25Q² Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum?Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)Q#2. The water bottle manufacturing company in Muscat facing the following demand function P=1000-10Q. The cost accountant at the company by evaluating the costs has given the average cost function as ATC=200+15Q. The manager of the company with presented information above requested you to work on it and help the company to determine the level of output that brings maximum profit. Secondly, the manager also wants to know the total level of profit at the maximum output.
- Consider the following graph of the average and marginal cost functions for a firm in a perfectly competitive market. At a price of P=10: (iii) the marginal cost of production is . (iv) the firm's total profit is . (v) the firm's variable profit is .Joshua owns a small boat and catches lobster off the coast of Maine. His weekly cost function is TC(q) = 40 + 5q + 5q?. He sells his lobsters to the local wholesaler at the market price p (in dollars). a) Find Joshua's short-run supply function for lobsters. (Hit: In this case short-run marginal cost is the same as long-run marginal cost.) b) Find Joshua's long-run supply function for lobsters. c) Find Joshua's shutdown price and Joshua's breakeven price (the price at which profit equals zero). d) Suppose the market price is $30, calculate his profit. What will Joshua do in the long run? Explain. 1A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 3rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized. 20 MacBook esc 20 F3 OOD F1 F2 F4 2$ W R tab 6 5 %A4 %# 3