Multiple Choice O N O If firm A predicts B will set a price of $12, then firm A should charge a price of $ O $6 $8 $10 Price for Firm B $12 6 R to maximize A's profit.
Q: For a monopolist's product, the cost function is c = 0.004q³ +40q+5000 and the demand function is…
A: In a monopoly market the profit-maximizing output level arises where MR = MC, and monopolist sets…
Q: The Nespresso stand needs two inputs, (hours of) labor and coffee beans, to produce its only output,…
A: Given Information: Producing an espresso at the Nespresso stand requires a constant amount of coffee…
Q: The price of DVDs (D) is $10.00 and the price of CDs (C) is $10.00. Phillip has a budget of $50.00…
A: A budget line shows the combinations of two products that a consumer can purchase with a given…
Q: Which of the followingbest describes the monopoly market? choose from answers below Group of answer…
A: The question is asking to identify the relationship between price and marginal cost in a monopoly…
Q: Is absolute advantage or comparative advantage more important for trade? Give an Example
A: International trade or trade refers to the exchange of capital, goods, and services outside the…
Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…
A: Present value is the current worth of a sum of money that will be received or paid in the future.…
Q: Economists define investment to include Select one: any increase in business inventories…
A: Investment, in economics refers to the allocation of money or resources to purchase or create…
Q: Pretend that the country is in a normal economic climate. Suppose that the Federal Reserve,…
A: The Federal Reserve has announced to initiate the purchase of $2 million worth of treasury and other…
Q: How did you calculate the solution of (i)?
A: The data on nominal GDP of Barbados from 2020 to 2021 isYearNominal GDP (in $)Change in GDP (in…
Q: 10 0 10 20 30 Puzza West Lothian 20 1319 10 O 10 20 Pizza East Lothian 30 In the accompanying…
A: The PPF is also referred to as the production possibility curve (PPC). The production possibilities…
Q: A monopolist faces the following market demand, total cost, and marginal cost: Market Demand: P =…
A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…
Q: Price and costs (dollars per pound) a 9 2 0 100 A) B) C) $0 D) $200 Answer: A $400 $900 A) B) C) D)…
A: A monopolist refers to a single seller or producer in a market that has substantial control over the…
Q: Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium…
A: Monopolistic Competition is a market structure where there are a large number of buyers and sellers;…
Q: Two firms commercialize two products that they both compete for. Each firm currently has 50 % of…
A: Two Firms: Firm A and Firm B, each with a 50% market share.Advertising Channels: TV (50% reach),…
Q: in-11.3% PW-P14,539.69 You are considering the purchase, for P15,000, of an annuity that pays 2,500…
A: When evaluating various projects or decisions involving significant investments, capital budgeting…
Q: According to the national income identity, a. the trade balance is equal to the net capital outflow.…
A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…
Q: what recommendations would you make regarding the benefits plan for the next year (consider both…
A: To make recommendations regarding the benefits plan for the next year, both financial and…
Q: Jane invests R8,000 at an annual interest rate of 6%, continuously compounded annually. How much…
A: In the continuous compounding there will be an assumption that interest is compounded and reinvested…
Q: If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from…
A: Every consumers earns a particular salary but they had to face a number of deductions. The…
Q: b) Redraw the graph, but this time shade in the areas that represent consumer surplus, producer…
A: The situation describes a firm that has patented technology in manufacturing 3D food printers. There…
Q: 12.02-PR004 CustomMetalworks is considering the expansion of their cable fabrication business for…
A: 5 indivisible projects are given below:Each investment will provide an exit with full return of the…
Q: 2. Suppose a tax of $1 per pound is put on apples. (Be very brief in your answers.) a. What will…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: What is the cross-rate implied by the following quotes? a. C$/$ = 1.5613, $/€ =1.0008 b. ¥/$ =…
A: The rate of exchange between two currencies without including the home currency is represented as a…
Q: 11. Which of the following is not true regarding Figure 11.1? Output (units per day) 50 48 9 S 1 12…
A: A production function is a mathematical relationship that represents the maximum amount of output…
Q: 10. When did the U.S. economy recover to the same GDP level just prior to the Covid-19 pandemic.…
A: The objective of the question is to determine when the U.S. economy recovered to the same Gross…
Q: [Adverse Selection] Each of the two players receives an envelope, in which there is an amount of…
A: Game theory influences many elements of modern civilization, from pricing methods and efficacy to…
Q: A 40,000 SF office property has reimbursable operating expenses of $240 full service gross lease on…
A: First, we calculate the total operating expenses per square foot: sfSince there's a $2.00 expense…
Q: You are the manager of a monopoly that sells a product to two groups of consumers in different parts…
A: a. To determine the optimal markups and prices under third-degree price discrimination, we use the…
Q: Complete the following table, given the information presented on the graph. Result Price producers…
A: Consumer Surplus: Consumer surplus is the net benefit that the consumer receives by purchasing…
Q: Please answer the follow up questions in part (d) and (f) please
A: CPI rеfеrs to thе changе in pricе basеd on thе baskеt of goods and sеrvicеs. CPI is a mеasurе of…
Q: Suppose a group of high school friends work at the same fast food restaurant. They all dislike the…
A: we need to consider the dynamics of labor markets and employer-employee relationships, particularly…
Q: (Figure: Market Demand Curve I) The graph shows the market demand curve. Price (S) 40- 36 32 28 24…
A: A market structure known as a Cournot duopoly with identical products occurs when two enterprises…
Q: Which of the following are the market conditions necessary for the superstar phenomenon to arise?…
A: The market conditions necessary for the superstar phenomenon to arise are:a. Every customer in the…
Q: Consider the only internet service provider in a small town, which you can assume operates as a…
A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…
Q: To prepare do the question that I left with you, that is given the production function, TP= 2KL, PK…
A: Output needs inputs. Land, labour and capital are common inputs for the production of goods and…
Q: Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will…
A: It seems there might be a slight terminology confusion. The correct term is "Net Present Value"…
Q: ould each of the following groups be happy or unhappy if the U.S. dollar appreciated? Australian…
A: A currency appreciation refers to which if it becomes more valuable in terms of other currencies.…
Q: Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph…
A: The demand and supply model is a concept in economics that explains how prices and quantities of…
Q: (b) Provide a table with the nominal GDP for the Barbados for 2020 and 2021. Using only the nominal…
A: For a particular period, the final value of goods and services produced in an economy is known as…
Q: Suppose we have a demand curve (D) described by P = 10 - 3Q along with two different supply curves.…
A: Demand represents the quantity of a commodity that consumers are willing and able to purchase at…
Q: 10 Interest Rate (%) A 2 0 Investment Demand $10 20 30 40 50 Investment ($) Price Level AS Q₁ Real…
A: Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…
Q: Quantity (students per year) 35) 35) The figure above shows the market for private elementary school…
A: The externalities refers to effects of economic activities that are not internalized by demand and…
Q: 8. Total economic surplus The following graph plots the supply and demand curves in the market for…
A: Consumers wanted to purchase goods at a lower price but in mind they set a higher value for the good…
Q: A firm in a competitive market has the following cost structure: Output 0 1 2 3 4 5 Total Cost $5…
A: From the above table given in the question, we can calculate the fixed cost and the variable cost…
Q: 4. Profit maximization and loss minimization Lagatt Green is a monopoly beer producer and…
A: Profit is maximised where marginal cost equates to marginal revenue.MC=MR, where to evaluate the…
Q: Exhibit: Price Discrimination Price $15 $10 $7.50 $5 20 30 Quantity 40 MC=AC = $5 D 60 (Exhibit:…
A: A market often consists of unique products that are sold by a single seller. These sellers have the…
Q: on the following graph, shift the curve or drag the blue point along the curve, or do both, to show…
A: It can be defined as a form of graphical of the concept of economics which shows the rate of…
Q: In the Solow model, how does a decrease in the rate of population growth n affect the steady-state…
A: According to the Solow growth model, the long-run economic growth is the result of a significant…
Q: a) b) c) d) Figure 11.1 represents a production function. Marginal product is zero with the hiring…
A: The production function is the relationship between the physical inputs and physical output, It is a…
Q: Why have European steel firms not been split with the inherent costs of having significant market…
A: Market power, the ability of a firm to influence prices and control market outcomes, is a critical…
Step by step
Solved in 3 steps
- Economics Bidding for Bookstore Licenses. Paige initially has the only license to operate a bookstore in Bookville. She charges a price of $13 per book, has an average cost of $3 per book, and sells 1,501 books per year. When Paige's license expires, the city decides to auction two bookstore licenses to the highest bidders. Suppose the relevant variables (price, average cost, and output per firm) take on only integer valueslong dash—no fraction or decimals. a. Suppose Paige is optimistic and imagines the best possible outcome with a two-firm market. What is the maximum amount she is willing to pay for one of the two licenses? $ nothing (Hint: How will the relevant variables change? What is the smallest possible change in their values?) b. Suppose Paige is pessimistic and imagines the worst possible outcome with a two-firm market. What is the maximum amount she is willing to pay for one of the two licenses? $ nothing (Enter your response as an integer.)10Two firms produce differentiated products. The demand for each firm’s product is as follows: Demand for Firm 1: q1 = 20 – 2p1 + p2 Demand for Firm 2: q2 = 20 – 2p2 + p1 Both firms have the same cost function: c(q) = 5q. Firms compete by simultaneously and independently choosing their prices and then supplying enough to meet the demand they receive. Please compute the Nash equilibrium prices for these firms.Gary's Gas and Frank's Fuel are the only two providers of gasoline in their town. Below is the demand schedule for the market of gasoline. Assume that the cost of producing gasoline is 3 per gallon (AC=3, FC-D0). Suppose that the two producers collude (split production and profits evenly), what are the joint profits of these two firms? Q demanded (in gallons) 10 12 4 Market price (in dollar) $22 $20 $18 $16 $14 $12 $10 $8 $6 $0 O $27 O None of these options is correct. $55 O $72 O $36 50 00 3)
- It takes 3,000 households having average annual income of $50,000 within a 3-mile radius to support a grocerystore. There are actually 6,000 households within 3-miles of the Shop-Rite Grocery that have $50,000 per yearaverage incomes. Today, Shop-Rite is the only grocery store in this area. Using the concept of Nash Equilibrium inlocation, explain what the likely outcome will be for this area, given those conditionsSuppose we have two identical fırms A and B, selling identical products. They are the only firms in the market and compete by choosing quantities at the same time. The Market demand curve is given by P=390-Q. The only cost is a constant marginal cost of $14. Suppose Firm A produces a quantity of 57 and Firm B produces a quantity of 44. If Firm A decides to increase its quantity by 1 unit while Firm B continues to produce the same 44 units, what is the Marginal Revenue for Firm A from this extra unit? Enter a number only, no $ sign. Don't forget to include the negative sign if revenue decreases. 231Consider two gas stations in a remote village facing the simple linear market demand Q= 300− 5p but have different marginal costs of production, both constant, such that MCx = 20 and MCy = 101. Measuring the quantities Qx on the horizontal axis and the quantities Qy on the vertical axis, draw the reaction curves for each of the gas stations.2. Based on a Cournot equilibrium, find the profit-maximizing quantities Qxand Qy for the two gas stations.3. Based on your answers to (1) and (2) above, if gas station y decided to produce 175 units, (a) what would be the reaction of gas station x, and (b) how would y, in turn, react to that level of output of x?
- A6 In Changlun, Kedah, there are two bakers, Abu and Bakar. Their bread taste the same and nobody can tell the difference. Abu has constant marginal costs of RM1 per loaf of bread. Bakar has constant marginal costs of RM2 per loaf. Fixed costs are zero for both of them. The inverse demand function for bread in Changlun is p(q) = 6 – 0.01(qA + qB), where q is the total number of loaves sold per day. Find the reaction function for Abu and Bakar. What is the Cournot Nash equilibrium number of loaves of bread for each baker?Two farmers produce milk for local town with local milk demand given by Q=100-1/3P (P denotes price measured in Rands, Q denotes the quantity measured in litres). Both farmers have the same cost function given by TC=150+2q (where q denotes output) a. Determine the reaction function of each farmer. b. Find the cournot-Nash equilibrium. c. Calculate profit for each farmer d. Suppose that both farmers decide to form a cartel, determine profits for each farmer under the cartel. e. What output should farmer 1 produce if he/she expects their rival to produce 20 units?h. What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers - please answers questions e, f and hThe table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0, FC=0) Q demanded Price 1 $18 2 $16 3 $14 4 $12 5 $10 6 $9 7 $7 8 $6 9 $5 Assume the two producers initially collude to maximize profits, splitting production and profits evenly. What price will they charge? $___________ What is the total quantity produced? __________monster trucks What are the profits for each firm? $___________
- Suppose we have two identical firms A and B, selling identical products. They are the only firms in the market and compete by choosing quantities at the same time. The Market demand curve is given by P=477-Q. The only cost is a constant marginal cost of $16. Suppose Firm A produces a quantity of 66 and Firm B produces a quantity of 49. If Firm A decides to increase its quantity by 1 unit while Firm B continues to produce the same 49 units, what is the Marginal Revenue for Firm A from this extra unit? Enter a number only, no $ sign. Don't forget to include the negative sign if revenue decreases.1. The market (inverse) demand function for a homogeneous good is P(Q) = 10 - Q. There are two firms: firm 1 has a constant marginal cost of 2 for producing each unit of the good, and firm 2 has a constant marginal cost of 1. The two firms compete by setting their quantities of production, and the price of the good is determined by the market demand function given the total quantity. a. Calculate the Nash equilibrium in this game and the corresponding market price when firms simultaneously choose quantities. b. Now suppose firml moves earlier than firm 2 and firm 2 observes firm 1 quantity choice before choosing its quantity find optimal choices of firm 1 and firm 2.There are only two driveway paving companies in a small town, Asphalt, Inc. and Blacktop Bros. The inverse demand curve for paving services is ?= 2040 ―20? where quantity is measured in pave jobs per month and price is measured in dollars per job. Assume Asphalt, Inc. has a marginal cost of $100 per driveway and Blacktop Bros. has a marginal cost of $150. Answer the following questions: Determine each firm’s reaction curve and graph it. How many paving jobs will each firm produce in Cournot equilibrium? What will the market price of a pave job be? How much profit does each firm earn?
