E). ABC and MNO agree to jointly maximize profits. If ABC and MNO each break the agreement and each produce 5 more than agreed upon, how much less profit does each make, compared to the profit at the cartel output? F). If this market were perfectly competitive instead of oligopolistic, what would the price be? G). If this market were perfectly competitive instead of oligopolistic, what quantity would be produced?
Q: Economists draw a distinction between world as it is, and statements, which describe th statements,…
A: You appear to be addressing a basic subject in economics and philosophy: the distinction between…
Q: Total labour supply is fixed at 100. Output is produced using only labour and the labour demand…
A: The labor demand in the urban area is given as The labor demand in the rural area is given as The…
Q: Problem 5: Consider an economy with production. The production functions for goods X and Y are given…
A: The Walrasian equilibrium, which represents the beneficial allocation of resources and the balance…
Q: a) Show that the utility function is strictly increasing in x1 and x2. b) For a given level of…
A: Utility is the total satisfaction derived from consumption of goods available in the economy. The…
Q: Suppose a country is currently producing at a point on its production possibility frontier, and…
A: Production possibility curve -This is a curve which shows various combination of two goods a country…
Q: 28) If the required reserve ratio is 10% and the Federal Reserve purchases $50 million in treasury…
A: Since you have posted two independent McQs, according to the guidelines, only the first McQ is…
Q: Which of the following is true? Question 37Answer a. The loanable funds model is essentially a model…
A: The two main models of the rate of interest are the loanable funds model and the money market model.…
Q: Fill in the missing data in the following table. Quantity of Output (Units) 25 41 56 69 80 Units of…
A: The marginal physical product of X is the additional output produced by one additional unit of…
Q: Question 74 Table 18-4 Only two firms, ABC and XYZ, sell a particular product. The following table…
A: Collusion is one of the activities that is taken by two parties in a game. In this case, the two…
Q: Given: Cash flows for an investment. Required: EUAC at 7% per year (i.e., Calculate EUAC). Year 2…
A: YearCash flowPV factorPresent…
Q: Bond Prince and Interest
A: Bond price refers to the current market value of a bond. It represents the present worth of the…
Q: It was administered to 5,834 people in Lagos, Nigeria where the community is experiencing an Ebola…
A: INTRODUCTION: In general, a total of 5,834 individuals were tested for signs of the disease during…
Q: Consider the cost figure below: Dollars BA Quantity is equal to B MC At output level Q. average cost…
A: The per unit cost of producing a good is known as the average cost. The average total cost is the…
Q: "Production function" is the name for OA. a working part. OB. a mathematical relationship between…
A: The production function is the mathematical expression denoting the technological relationship…
Q: The diagram below shows alternate paths for two hypothetical economies, each starting with GDP of $1…
A: The propensity to consume denotes the propensity to spend a share of income on consuming goods and…
Q: Dreher's Designer Shirt Company, a monopolist, has the following cost and revenue information. What…
A: Marginal revenue is the change in TR. It is the change in TR divided by the change in quantity…
Q: An increase in per capita production and incomes can be expected to have a large effect in reducing…
A: This idea is called the Environmental Kuznets Curve (EKC). According to the EKC hypothesis,…
Q: An example of an economic entity is a: a. town. b. business. c. non-profit hospital. d.…
A: In the context of economics and accounting, an economic entity is an organization or unit that…
Q: Based on what we observed in the module on public finance, select all true statements. 0 0 0 Over…
A: Public finance refers to the management of a country's revenue, expenditures, and debt load through…
Q: Suppose that output growth in Arcadia is 1% per year, the growth rate of capital is 2%, and the…
A: In macroeconomics, the significance of productivity lies in its direct impact on a nation's economic…
Q: If the reserve ratio was 15% and someone deposited an additional $40,000, what would be the maximum…
A: Money supply:All of the money in circulation within an economy is known as the money supply. The…
Q: There is much speculation on how the current foreclosure market will evolve due to a variety of…
A: The real estate market, a dynamic entity, is constantly shaped by a myriad of economic factors.…
Q: Since the 1970s the number of jobs in manufacturing has decreased in the L industry jobs have risen…
A: Manufacturing is the process of using machinery or manual labor to transform unprocessed goods into…
Q: As oil prices climb, western rage flares against the Arab oil producers. Why do we argue that this…
A: For various reasons, the anger aimed toward Arab oil producers when oil prices rise is widely…
Q: Suppose that a monopolist's market demand is given by P= 180-20 and that marginal cost is given by…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: The Dyson Corporation has recently evaluated a proposal to invest in cost-reducing production…
A: The project expected internal rate of return will be used to determine the profitability of…
Q: Question 3 A firm may be deemed a monopolist, even though it is not the only seller in a market,…
A: Monopoly is a market structure in which a single company dominates the entire industry. In a…
Q: Price P P* 0₁ Y* Y LRAS SRAS AD* AD Real GDP
A: This question asked us to understand the components of the graph—LRAS representing potential output,…
Q: What level of social-political complexity is redistribution (as the basic force of economic…
A: Economics is a vast and multifaceted social science that can be defined in several ways, depending…
Q: 3. In a small community, breakfast is the most important meal of the day. Therefore, the only two…
A: The GDP, or gross domestic product, is a crucial economic metric that shows the entire amount of…
Q: You go on vacation in London and find a replica of the fuzzy hats that Buckingham Palace guards and…
A: An exchange rate is the relative price of one currency expressed in terms of another currency.
Q: Price or Cost 0 Price or Cost O Firm A O Firm B O Firm C Firm A O Firm D MR Quantity Firm C MR…
A: A market with very minimal competition is referred to as a monopolistic market. It does not imply a…
Q: Workers in the private sector are far more likely to have a defined benefit plan than workers in the…
A: The defined benefit plan is the defined plan of retirement benefits that are provided by the…
Q: Suppose a student has two options for the upcoming year. She can earn $30,000 next year working…
A: The concept at the heart of this question is the opportunity cost, an economic term that refers to…
Q: Consider a one-period model in which the representative consumer maximizes the utility U(C,L)= InC +…
A: A utility function, represented as U(C, L) with C as consumption and L as leisure, encapsulates…
Q: Suppose that the steady-state unemployment rate is 9%. The number of vacancies relative to the labor…
A: Real wages are wages that have been adjusted to account for inflation or salaries that are expressed…
Q: Table: Growth Rates and Real GDP per Capita Country A Country B $5,000 $10,000 6% Real GDP per…
A: Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and…
Q: This is a monopoly in the product market. Use the numbers given for labor input, TPP and P to answer…
A: Here given the labor input, TPP and P; the MPP, Revenue, MRP, and MR are to be determined.The terms…
Q: Consider the following diagram which shows the money multiplier effects. It starts with you…
A: A bank is a financial institution that plays a crucial role in the economy by connecting individuals…
Q: Using Okun's law, fill in the four pieces of missing data in the table below. All of the following…
A: Okun's law refers to the equation that shows the relation between the actual output, the potential…
Q: Assets Liabilities Deposits: $1450000 Capital: 0 Required Reserves: $460000 Loans $150000 Bonds:…
A: TD Bank has a deposit of $1450000. TD Bank has a required reserve of $460000.TD Bank has loans of…
Q: Suppose that Ms. Jones is currently exhausting her money income by purchasing 4 units of A for $2 a…
A: Marginal Utility refers to the additional satisfaction or happiness a consumer recieves from…
Q: Use the Fed rule-of-thumb to predict the Fed's target for the federal funds rate and the real target…
A: Taylor's rule is the technique to calculate the target federal funds rate. Taylor's rule links the…
Q: Draw a supply and demand graph that represents the labor market. Now, assume that the economy is in…
A: To illustrate the labor market scenario you mentioned, we'll begin by drawing a labor market supply…
Q: Figure: An Excise Tax Price of good $5.00 4.33 3.50 3.00 2.40 1.40 0.60 0 100 225 300 Reference: Ref…
A: Excise taxes levied on specific goods or services like tobacco, fuel and alcohol. These taxes are…
Q: There is much speculation on how the current foreclosure market will evolve due to a variety of…
A: How Expiring Protections and Economic Headwinds Will Reshape the Housing LandscapeThe current…
Q: Explain the concept of Neoclassical Model and the Keynesian economics model
A: Neoclassical economics and Keynesian economics are two contrasting schools of thought within the…
Q: 2. Suppose you manage a factory with ten workers. Each worker's output is determined by the equation…
A: Profit maximization is an economic concept and goal pursued by businesses and firms. It refers to…
Q: Consider the cost curves of a firm in a perfectly competitive market shown above. If the market…
A: Profit refers to the sum of money that the producer or seller earns over and above the cost of…
Q: An economic benefit to engaging in intra-industry trade between countries includes a) division of…
A: Intra-industry trade refers to the exchange of similar products belonging to the same industry. The…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $150< The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $100 per unit per day and the fixed cost of the capital is $2000 per day. Click the icon to view the table. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) 100 20 40 60 80 100 120 140 40 60 300 80 800 1370 1570 1630 1670 300 800 TFC $2000 1370 $ 2000 $ 2000 TVC $2000 Complete the last four columns of the table. Units of Labour (per day) Total Output (per day) 20 100 $ 4000 $ 6000 $ 2000 $ 8000 $2000 $10000 TFC TC $ 4000 $6000 TVC $ 8000 2000 $12000 $14000 $10000 $2000 $14000 $16000 $12000 TC MC MC $10 4 $3.50 $10 4 AFC AFC $20 $2.5 AVC $6.67 $ 13.33 $ 1.46 AVC $20 $7.5 $5.84 ATC ATC $40…4. Elasticity and total revenue The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 100 Total Revenue 90 B0 70 50 40 30 20 10 Demand 10 20 30 40 50 70 90 100 110 120 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop)
- The following graph shows the firm-specific demand, Marginal Revenue, and Marginal Cost for Sarah's Sandwich Shed, which operates in a Monopolistically Competitive market. Price $18 $16 MC $14 $12 $10 $8 $6 Demand $4 $2 MR 50 100 150 200 250 300 350 400 450 500 Quantity of Sandwiches per Day MacBook AirHelp meTable 15-4 Price per Dose $80 72 Quantity Demanded (dose) 0 1 2 3 4 5 6 24 7 16 8 Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 15-4 shows the demand and the total cost schedule for the firm. 64 56 48 40 32 Total Cost of Production (dollars) $80 Refer to Table 15-4. What is the amount of Shakti's profit? $68 $72 $124 $192 82 88 100 124 164 208 268 340
- The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?Quantity Total Price Demanded Revenue Revenue Marginal Total Marginal Cost Cost $24 1000 $24,000 $15,000 $22 1250 $27,500 $14 $17,000 $8 $20 1500 $10 $19,500 $10 $18 1750 $31,500 Y $23,000 $14 $16 2000 $32,000 $2 $27,000 Z (a) Calculate total revenue at X. (b) Calculate marginal revenue at Y. (c) Calculate marginal cost at Z. (d) Find the profit maximizing price.The market for apple pies in the city of Ectenia iscompetitive and has the following demand schedule:Price Quantity Demanded$1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0Each producer in the market has fixed costs of $9 andthe following marginal cost schedule:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost andaverage total cost for each quantity from 1 to6 pies.b. The price of a pie is now $11. How many pies aresold? How many pies does each producer make?How many producers are there? How much profitdoes each producer earn?c. Is the situation described in part (b) a long-runequilibrium? Why or why not?d. Suppose that in the long run there is free entryand exit. How much profit does each producerearn in the long-run equilibrium? What isthe market price? How many pies does eachproducer make? How many pies are sold inthe market? How many pie producers areoperating?
- s) You have a bicycle rental business which has 500 adult bikes and 250 children's bikes. The bikes have a fixed cost of $1,000 to maintain, but no marginal cost to rent them out. Demand is below. Price/hour $10 9 8 7 6 ANWAGO 5 4 3 2 1 Adults 50 100 150 200 250 300 350 400 450 500 Children 0 0 0 0 0 50 100 150 200 250 a. If you, by law, can only charge one price, what would it be, and to whom? b. If you could charge adults and children different prices, what would be the prices to each group?Price L M N 0 K MC ATC MR F G Output The profit-maximizing firm will be earning total revenue of OFIN OFJM OFKL OGHMThe following graph depicts the costs incurred by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the same product. Use the graph to answer the following questions- Price/Cost per egg MC 12 ATC MR3 AVC MR2 MR1 Quantity 100 200 300 400 a)lf the market price per egg is 8tk, in order to maximize profit how many eggs does Rahim sell? b)lf the price stays at 8tk, what happens in the long run? choose from the following options. option 1: Rahim stops selling eggs. option 2 : New firms enter into the egg market option 3: all existing sellers suffer from an economic loss. c)lf the price falls down to 3tk price, which of the following option does Rahim have in short run? option1: Temporarily shutting down the business business option 2 : staying in generating no profit option 3: indifferent between staying in and going Out of the market. but