A firm considering production of Q2 units of output would choose to (Slide for profit maximization graphically) A. produce exactly Q2 B. produce less than Q2 C. produce more than Q2
Q: 4. Complete the missing entries in the following table. Labor 1 2 3 4 5 Total Product 15 40 55 70…
A: Here, ATC = average total cost AFC = average fixed cost AVC = average variable cost TC = total…
Q: Compared to a competitive firm, a monopoly will ... (select all correct answers) A. produce an…
A: In a competitive market, the firm produce where P = MC P is price MC is Marginal cost. A monopoly…
Q: The selling price of product C is K20 while the variable cost is K15 per unit. Fixed cost are K20,…
A: The point on the supply curve where the firm earns only normal profit will be termed as the…
Q: Question 2 Full explain this question and text typing work only
A: we have given the 3 different types of production function, where each is the function of labor and…
Q: Suppose that the firm Smith Co sells 400 blouses per month for $80 per blouse. Roberto, the owner of…
A: Accounting cost only include the explicit costs. But Economic profit includes both explicit and…
Q: Assume that the relationship between test scores and the student-teacher ratio can be modeled as a…
A: We have relationships between the text score and student-teacher ratio and which can be modeled as a…
Q: The model of national economy is characterised by the follow Household consumption C-400+ 0.9*DI…
A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…
Q: U.S. government price supports for milk led to an unceasing surplus of milk. In duce the surplus…
A: Free market, an unregulated structure of economic exchange, in which taxes, quality controls,…
Q: 14 What is the standard deviation of the returns on a portfolie that is invested 20 percent in slock…
A: Calculated of Expected (mean) return of a stock - E(R)=∑i=1n(Pi×Ri) Where,…
Q: c) Assuming that the cost of employing each worker is $220 per day (including wages and materials),…
A: The law of diminishing return, unavoidable losses is a monetary standard expressing that as an…
Q: The Parsonss have decided to invest in a college fund for their young son. They invested $40,000 in…
A: Given that, Invested Amount = $40,000 Interest rate = 3% (Compounded Monthly. n=12) Time Period = 15…
Q: • point of diminishing returns (D) most productive point (P) economic capacity (E) Once a point is…
A: No of Workers TP 1 10 2 80 3 180 4 240 5 280 6 294 Variable Cost = 220 per day Fixed…
Q: Suppose an initial investment of $100 will remain $50/year fo r three years (assume the $50 is…
A: The profitability of an investment including a sequence of cash flows at various times is determined…
Q: In 1992, several European countries had their individual currencies pegged to the ECU (a pre-cursor…
A: a) The graph indicates that when interest rates rise, the money supply will fall and the value of…
Q: Which of the following is a challenge of government setting a price floor? A risk of excess supply…
A: price floor is the minimum price that should be charged from the consumer. Price floor is binding…
Q: Q^d= 9.5 - 2p Q^s= 0.6p Tax. Suppose that the government imposes a tax equal to T = 0.50 which…
A: The market is in equilibrium when the Demand for the particular Good and Service is equal to the…
Q: In a closed economy, the MPC is 0.50. Government spending changes by - 400. The change in…
A: Aggregate demand is the sum of Consumption, Investment , government spending , and net export =>…
Q: Essay Question 3 Refer to the information provided in Table 2 below to answer the questions that…
A: Planned expenditure is the worth of the total amount of finished products and services within an…
Q: $2,140 Evan's Hat Store sells hats in a perfectly competitive market with a downward sloping demand…
A:
Q: Is sector/industry analysis valuable? Why or why not? Explain.
A: Both sector as well as industry analysis are valuable. Entrepreneurs use sector analysis to evaluate…
Q: Calculate the income taxes that a person has to pay considering the table below- (a) If a person's…
A: Taxable income is the base income upon which tax is levied. It includes some or all items of income…
Q: You have collected data for the 50 U.S. states and estimated the following relationship between the…
A: The unemployment rate means the percentage of people in the labor force who are unemployed.…
Q: In our discussions of life-cycle models we often assume people are earning income, Y, from the…
A: Given information: During school: Ahmad’s time from school to graduation = G Ahmad’s cost and…
Q: 9. This question is based on the following data, which are for an apple farmer who can hire migrant…
A: Profit maximizing point is achieved at the point where value of marginal product of labor is equal…
Q: The major assets on a bank's balance sheet are its checking and savings account deposits. loans, and…
A: Balance sheet is the T account showing the assets and liabilities of a firm. Balance sheet shows…
Q: The figure below displays 6 different bundles of Good #1 and Good #2. Bundles A, B, C, D, and E are…
A: We have initial prices p1=p2=1 and the consumer income =y=$20 and then price of good-1 increased to…
Q: Why do so few countries impose high tax rates on wealthy people and luury goods?
A: Taxes are the compulsory payments which are made by both buyers and sellers of a commodity for the…
Q: If a firm, wanting to maintain the same level of output and reduce costs is producing where MPL/MPK…
A: MRTS(marginal rate of technical substitution) is the slope of isoquant which is the ratio of…
Q: A country has a targeted rate of output growth of5%, a capital depreciation rate of2%, and a…
A: Keynesian economic growth theory is represented by the Harrod-Domar model. In economic growth, the…
Q: Which of the following are characteristics of monopolistic competition in the long A. blocked entry…
A: In a market system known as monopolistic competition, there are large sellers, each of whom offers a…
Q: Answer the question on the basis of the following total utility data for products L and M. Assume…
A: One is considered as a rational consumer if they make logical purchase decisions. In other words, a…
Q: The United States is one of the world’s wealthiest countries. Think of a recent case in which the…
A: We show that Any choice to allocate resources and government spending has both good and bad…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Given Information: Value of Investment = $50,000 Time = 5 years Rate of Interest = 6% We have to…
Q: A baseball team plays in a stadium that holds 58000 spectators. With the ticket price at $11 the…
A: there are 58,000 Spectators Price = $11, then average attendance is 26,000 The price dropped to…
Q: 1. Mr. Lopez borrows P600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: he table below shows cost data for producing different amounts of sofas. Use the given information…
A: Total cost is the sum of fixed cost and variable cost. Average fixed cost is the fixed cost divided…
Q: I know that the equilibrium is 8 and that is where the total surplus is maximized, however, I don't…
A: Answer to the question is as follows:
Q: Which of the following is an example of capital deepening? O A. Doctors use more sophisticated…
A: Capital deepening means a rise in the proportion of the quantity of capital stock to the number of…
Q: By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b.…
A: In a market, two or more goods are related to each other directly or indirectly when the change in…
Q: data analysis, please show work Here is a table showing the approximate breakdown of blood types in…
A: Probability of an event E is given as : P(E) = (number of elements in the event set / number of…
Q: Redo the problem in Question 2 under the assumption that the person has utility function u(c) =…
A: Given that; Wealth (W) = $500,000 Incase of flood W goes down by $50,000 (L) Probability of flood =…
Q: The firm Tyrex, Inc. is facing losses, and needs to decide whether to shut down or keep producing.…
A: In the perfectly competitive market, the price is determined by the market forces of demand and…
Q: 6. A utility company is considering the following plans to provide certain service required by the…
A: Plan R Investment = 5,00,000 n = 18 salvage Value = 20% Annual Operating and Maintenance Cost =…
Q: Redo the problem in Question 2 under the assumption that the person has utility function u(c) =…
A: Contingent consumption refers to the consumption of the buyer when there are uncertain conditions.…
Q: The table below shows your production function relating output per number of hired workers (assume…
A: We know that, Marginal product of labour can be calculated by change in total product divided by…
Q: Synergy Co. and Durham Co. are the only two firms in the TVs market. The 2 firms can collude and…
A: There are two firms in the above Game - Synergy Co. & Durham Co. Strategy Set of Firm 1 =…
Q: Kansas Public Service Company wishes to determine the capitalized worth (present value of cycle…
A: To find the present value of the above cash flow we discount it at the rate of 9% .
Q: True/False A Well tested or widely accepted economic theory is often called an economic principle
A: The economic principles are those principles which satisfy unlimited consumer wants with very less…
Q: Which of the following is a challenge of government setting a price floor? A risk of excess supply…
A: a price floor is the minimum price that should be charged by the consumer. A price floor is binding…
Q: Suppose that three individuals each benefit from a public good. The marginal cost of the public good…
A: Public Good: Public goods are those goods which have non-rivalrous (if someone consumes that good,…
Step by step
Solved in 2 steps
- At what output rate does the firm maximize profit or minimize loss?If Daniel sells 250 hamburgers at a price of $3.00, and his average cost of producing 250 hamburgers is $2.50, what is his profit? Profit = $ (enter your response in dollars and cents).If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will * a)decrease output. b)earn greater profits than if MR = MC. c)shut down. d)increase output.
- What is the value of the average cost? If the price in the market of the perfect competitive firm is P9 Equilibrium quantity would be? Why?The relationship between the firm's average variable, average total, and marginal cost curves above: Marginal Reveue = Price = US $ 2.50 ; a) Use the graph to find the Firm's profit-maximizing output. b) If the firm maximizes its profit, how much profit does it make (about)? Should the firm stay in business? c) Will other firms with costs the same as Firms enter the market? Explain.A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.a). Is the efficient scale of the firm more than, less than, or exactly 100 units?
- depict a ATC curve, one where the firm has negative profits(π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determinewhether to shutdown or keep producing at Q = 1000.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 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 graph to see precise information on average variable cost.) Price (Dollars per oven) 25.00 70.00 100.00 Quantity (Ovens) Total Revenue (Dollars) Fixed Cost (Dollars) 1,600,000 1,600,000 1,600,000 Variable Cost (Dollars) Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $1,600,000 per day. In other words, if it shuts down, the firm would suffer losses of $1,600,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the…A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
- A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.For each of the following events identify which of the determinates of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Why? A stock market crash lowers people’s wealth. Batelco increases the prices of mobile services. Diminishing returns mean rising costs while economies of scale mean falling costs. Therefore, a firm cannot be facing both diminishing returns and economies of scale. Do you agree? Why or why not?Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of x lawn chairs is R(x)=0.005x³ +0.02x² +0.5x Currently, Pierce sells 90 lawn chairs daily a) What is the current daily revenue? b) How much would revenue increase if 95 lawn chairs were sold each day? c) What is the marginal revenue when 90 lawn chairs are sold daily? d) Use the answer from part (c) to estimate R(91), R(92), and R(93) a) The current revenue is $ b) The revenue would increase by $ (Round to the nearest cent.) c) The marginal revenue is $ when 90 lawn chairs are sold daily. d) R(91) $ R(92) $ R(93) $
