A generic firm can make all the following changes in the long run except Select one: a. Leave an industry in response to losses b. Decrease its plant in response to profits c. Decrease its plant in response to losses d. Enter an industry in response to (expected) profits
Q: The case of transaction exposure is described as follows. Choose the correct answer in the…
A: In order to reduce the risk caused by certain foreign exchange holdings, foreign currency hedging…
Q: The nominal budget deficit of the government sector is -5% and the structural budget deficit is -1%.…
A: The nominal budget deficit is the contrast between the public authority's total expenditures and its…
Q: 4. (1) Solve the following "Entry Deterrence" game by backward induction, and show the solution on…
A: Backward Induction Method: Backward induction strategy is used to compute the equilibrium point of a…
Q: Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in…
A: The production possibility frontier represents the total output produced with the available…
Q: 1. The central bank offsets a decrease in currency holding by a. conducting open market sales b.…
A: Currency reserves are monetary standards held by one more country's national bank for motivations…
Q: 3. If there are two dummy variables Female and Male, should we include both of them in the…
A: Regression Regression is a technique that relates a dependent variable to one or more independent…
Q: one euro can purchase about a) 0.75 b) 1.12 Od 1.75 U.S. dollars. euros, then
A: The foreign exchange market is a worldwide decentralized or over-the-counter market for the…
Q: In the United States, imports of raw sugar are limited to about three billion pounds. The price of…
A: Trade restrictions refers to the policy adopted by the domestic government to control by prices of…
Q: Q.1.7 In the Keynesian macroeconomic model, the equation for the savings function is given as: S =…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Just confirming the ans dont copy Which characteristic of the indifference curve explains that…
A: An indifference curve, in essence, is a combination of two things in a variety of ratios that gives…
Q: a rightward shift of the demand curve. a leftward shift of the demand curve. a rightward movement…
A: In economics, economic equilibrium is a situation in which economic forces such as supply and demand…
Q: Assume chicken and beef are substitutes. The price of beef increases, therefore a. equilibrium price…
A: Substitute goods are the goods that can be consumed for one another. This means the increase in…
Q: Give the answer of both question otherwise don't give answer.
A: If a rise in inputs by t times increases production or output by more than t times, the firm is…
Q: Derive the equilibrium bidding function. Hint: After getting the differential equation given by the…
A: An auction is usually a process of selling of goods and services by offering customers a bid price.…
Q: What can we do to deal with the externalities associated with public goods and common resources?…
A: Externalities can be defined as the situation in which the production or consumption might result in…
Q: Wanda owns a fish shop and employs workers to sort and pack fish. Workers can pack the following…
A: The marginal product of labor (MPL) measures the change in the total product due to a change in…
Q: what are the tools used by the central bans to curb inflation
A: Inflation - The increase in the price levels of goods and services in an economy. When this happens,…
Q: EXERCISE 173.4 *rmy 1, of country 1, must decide whether to attack army 2, of country 2, which is…
A: The best strategy in a non-cooperative game is determined by a firm with the help of NE(Nash…
Q: giver by Q = 100 - 2P and the market equilibrium price equals $10. If, due to a shortage of…
A: A consumer surplus happens when the price that consumers pay for a product or service is less than…
Q: 3. Assume that a profit-maximizing firm in a monopolistically competitive industry is in long-run…
A: A monopolistic seller is almost similar to a perfect competitor. A monopolistic seller uses to…
Q: Distinguish what is a flexible Exchange Rate. Give examples
A: An exchange rate is the cost of exchanging one currency for another between nations or economic…
Q: The payoff matrix for a two-player normal form game is given below M N A 1,2 2,2 4,2 B 4,5 5,1 1,5…
A: Given the game: 1/2 A B C M (1, 2) (4, 5) (6, 3) N (2, 2) (5, 1) (2, 4) O (4, 2) (1, 5)…
Q: What is opportunity cost and what is its significance. In my homework .
A: Opportunity cost refers to the usual cost next best foregone. It is the cost of something that has…
Q: A perfectly competitive firm has cost function: AVC = 2Q + 4 (P: $, Q: kg). When the market price is…
A: The cost that remain constant or doesn't change with time is known as FC(fixed cost).The cost that…
Q: Suppose the government places a tax on a product. How does the cost of the tax compare with the…
A: A tax is a necessary fee or financial charge that a government imposes on a person or a business in…
Q: When two cats, Euclid and Jamie, play together, their game involves facing each other while several…
A: An equilibrium point for a game where both players employ mixed strategies is a pair of mixed…
Q: C. Market for Electric Fans In the long-run equilibrium of a competitive market, the market supply…
A: Disclaimer: - Since you asked multipart questions, we are solving first 3 subparts as per…
Q: Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which…
A: In a Monopolistic competition, The firm will produce where MR = MC MR is the marginal revenue MC…
Q: Refer to Table 1. In the profit-maximizing level of output, profits are $32 $54 $64 $50 a. b. C. d.
A: For a firm, the primary goal is profit maximization. It is maximum when the deviation between total…
Q: Question 7 Currently which of the following best describes Unfair Labor Practices? O Behaviors by…
A: Unfair Labor Practices refers to several acts by a labor organization or employer that violate a…
Q: EXERCISE 47.2 (Voting between three candidates) Suppose there are three candi- dates, A, B, and C. A…
A: A Nash equilibrium is a strategy profile in which no player can improve their expected utility by…
Q: Scenario 15-2 A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At…
A: The marginal cost describes the rise in production costs created by the production of additional…
Q: Q7/ IF you know that the total profit of a pharmaceutical factory is (500) RS, the cost price is…
A: The cost of production refers to the total expenses incurred in the production of goods or services.…
Q: One strategy that central banks can use to control inflation is O Increasing the capacity of…
A: Inflation is the general increase in the price level. The central bank of a nation controls the…
Q: (A)|test statistics/ 0.05 (D) test statistics>critical value ¹0.
A: Given information: Null hypothesis (Ho): β1 = 0 Alternative hypothesis: (Ha); β1 ≠0 The level of…
Q: Monopolistically competitive firms can earn above-normal economic profits in the short run. (a) In…
A: Monopolistically competitive firm produces the close substitute product. The selling cost is high in…
Q: Define externality and it's importance.
A: A cost or benefit that is not included in the cost of a commodity or service is known as an…
Q: During the COVID recession, many governments implemented an expansionary fiscal policy to prevent…
A: Expansionary fiscal policy refers to measures taken by the Government to raise the aggregate demand.…
Q: 175 125 100 80 ↑ Price 270 322 515 MC ATC Quantity a. At the market price of $80 per unit, what is…
A: In perfect competition , A firm will produce where P = MC And in short run it will choose to…
Q: Suppose the only currencies are the Philippine peso and Thai Baht for items 15-16. 15. Show a graph…
A: Foreign exchange is the process of converting one currency into another at a predetermined rate. It…
Q: E. Referring to the graph below of a natural monopoly: 100 90 80 70- 60 55- Price 50 40 30+ 20 10 MR…
A: A monopoly refers to a market in which there is only one single seller that sell a product that has…
Q: The consumer views present and future consumption as perfect complements and would like to consume…
A: An indifference curve is a curve showing various combinations of two goods that shows the consumer's…
Q: EXERCISE 74.1 (Electoral competition with three candidates) Consider a variant of Hotelling's model…
A: A Nash equilibrium in game theory is a collection of player strategies where no player has an…
Q: CES (Constant Elasticity of Substitution) production function is given as; Q = A[8K P+(1-8)L-P]-¹/P…
A: "Since , multiple question have been asked by you , we will solve first question for you. Please…
Q: Consider the following graph of a monopolistically competitive firm: 50 45 40 35 ↑ Price 20 15- 10-…
A: In a monopolistic competition , A firm will produce where MR = MC A perfectly competitive firm…
Q: Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which…
A: The firms are motivated to enter a market only if there are profits in the market in the short run .…
Q: For a firm, what does the production function represent? the concept of diminishing marginal product…
A: Microeconomics refers to the branch of economics that shows the behavior of individuals and…
Q: Money, as a relatively well over time. unit of account. means of deferred payment. store of value.…
A: Money is a commodity which is generally accepted as medium of exchange for all goods and services.…
Q: Consider the information given in the table below. What is the equilibrium price in this market?…
A: The general idea of quantity supplied relates to the law of supply. The law of supply states that…
Q: Suppose you make equal quarterly deposits of $1,000 into a fund that pays interest a rate of 16% per…
A: One of the most crucial economic concepts, FV is based on the time value of money. Investors must be…
Help soon
Step by step
Solved in 2 steps
- Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans awhole house for $156. Her total cost each day is $1680, of which $480 is a fixed cost. She cleans 8 houses a day.(a)Should Laura shutdown her business in the short-run, assuming that she cannot recover her fixed cost?(b) Should she exit in the long-run?Peter runs a small local newspaper company. He can sell a newspaper at $2. He has fixed costs of $10,000. His variable costs are $1,500 for the first thousand newspapers, $1000 for the second thousand, and then $600 for each additional thousand newspaper.Can he make profit at current market price? What is the breakeven price in this business (assuming maximum production at 10,000 newspaper)?Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Price Per Hour (Q) (P) 0 $6.00 1 5.50 2 5.00 3 4.50 4 4.00 5 3.50 6 3.00 7 2.50 8 2.00 Total Cost (TC) $2.00 6.50 10.00 13.00 15.50 17.50 19.00 21.00 24.00 loaves of ciabatta bread per hour. (Enter your response as an integer.) a. To maximize profits, Maria should sell Maria should charge a price of $ Maria's maximum profit is $ (Enter your response rounded to two decimal places.) (Enter your response rounded to two decimal places.) (Enter your b. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $ response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $. (Enter your response rounded to two decimal places.)
- A profit-maximizing competitive firm that is making positive profits in long-run equilibrium (may/may not) have a technology with constant returns to scaleOutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?Danilo and his wife operate a restaurant where they sell all their meals for $14.00 each. The markup on each meal is $5.00 and overhead expenses are 19.00% of cost. a. How much does it cost them to make each meal? $0.00 Round to the nearest cent b. What is their operating profit per meal? 50.00 Round to the nearest cent c. Calculate the break-even price. Round lo the nerert rent
- Marginal revenue and marginal cost intersect at pointCurrently the firm is producing at a profit maximizing quantity of output and has a total revenue of $5000. Variable costs are $4000 and Fixed costs are $2000. Which of the following is true for this firm in the short run: A. The firm should continue producing at a loss B. The firm should shut down immediately C. The firm should continue to produce since it is making profit D. The firm should adjust (increase or decrease) outputTrue/False Under perfect competition, firms profit in the long run will be abnormal profits.
- If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm must decrease output to increase profit must increase output to increase profit is maximizing profit O must shut-down to increase profitWhat is the total cost for this firm? (omit $ sign. Report cents as needed.) MC ATC D Quantity Price $14.00+ $12.00 $10.00 $8.00 0 1 1 I 250 300 MRThe owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some economic advice. He has told you that the market price for his shirts is $12 and that he is currently producing 200 shirts at an AVC of $10 and an ATC of $14. What do you recommend the owner do in the long run? O expand O operate O exit continue at current capacity O shut down