A monopolist that practices the first degree price discrimination (Select all that applies) O charges each consumer the maximum price the consumer is willing to pay. O creates deadweight loss, like any other monopoly. O drives the consumer surplus to zero. O produces the perfectly competitive level of output. O earns zero profit.
Q: Economics Part 1 O See Hint A firm produces output (y) using two inputs, labor (L) and capital (K),…
A: Given; Production function; Y=L0.25K0.75 where; L= 120 K= 60
Q: Duality (Part 2) [Answers a, b & c Provided by Bartley Expert] Let u(x.y)=(x+2)y. Find the following…
A: Dear Student as per policies and guidelines of bartleby, we are allowed to attempt only 3-subparts…
Q: 5. Imagine an economy with v = 1/5. Inflation expectations are zero. The economy receives a cost…
A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: Which of the following are true 1. Inflation squeezes profits. 2. Firms raise prices to offset…
A: Answer is given below
Q: After 2008, the Fed sets a target range that is for the federal funds rate. Select one: O 1…
A: The federal funds rate is the target interest rate which the Federal Reserve sets for the commercial…
Q: It is desired to purchase a piece of equipment worth $77,000 that has a useful life of four years…
A: Depreciation is characterized as the decrease of the kept cost of a proper asset in an orderly way…
Q: AS B P - AD2 A Po · AD1 Yo Y1 Y Output 25. Refer to the above Figure, if the economy is currently on…
A: The government of a country conducts fiscal policy to make changes in aggregate demand in the…
Q: А. What is the competitive equilibrium price and quantity of straws? B.: It turns out that straws…
A: Competitive equilibrium is a condition in which profit-maximizing producers and utility-maximizing…
Q: 1. Your rich uncle has offered you two living trust payouts for the rest of your life. The positive…
A: The minimum acceptable rate of return also known as (MARR) is the rate of return a management or…
Q: QUESTION 4 According to the IS curve, when interest rate i increases, equilibrium output Y will…
A: IS curve depicts the combination of interest rate and equilibrium output (Y) which clears the goods…
Q: Which best describe equation 2?
A: Inflation means the rise in the price level of goods and services in the economy. It means as the…
Q: Difficulty: Jerry's Auction House in Purloined Hubcap, Oregon, holds sealed-bid used-car auctions…
A: A bidder is a person who offers to acquire an item from a seller at a defined price in a market.An…
Q: With respect to international trade, specialization means that Multiple Choice each country consumes…
A: Specialisation refers to a process of using the skills and knowledge to produce a particular good…
Q: Which of the following groups is protected from a sudden increase in inflation? a) Borrowers who…
A: Inflation is the gradual loss of buying power of a currency.An economy's average price level of a…
Q: The keynesian school of thought argues that during a recession… a) Governments should reduce…
A: Key difference in assumptions - 1) classicals assume that there is always full employment in the…
Q: Consider two companies (A and B) which produce good A and good B respectively. To produce A, one…
A: The elasticity of labor demand assesses how sensitive labor demand is to changes in pay rates.In…
Q: Discuss the negative externalities associated with effects of the Covid-19. For example, if someone…
A: Covid 19 had impacted lives of one and many. Many things got changed as due to number of…
Q: 5. Consider an exchange economy with 2 agents and 2 goods. a) In an Edgeworth-Bowley diagram, show…
A: Exchange economy is specialized term utilized in microeconomics examination to depict association…
Q: If the U.S. dollar appreciates 30 percent, a U.S. manufacturer experiences decrease/ increase in…
A: Currency depreciation is the loss of value of a country's currency with respect to one or more…
Q: Assume that there is a 20 percent required reserve ratio and the public deposits $10 million in the…
A: Given information: Required reserve ratio = 20% Public deposits = $10 million
Q: If you deposit money in the bank for one year scenario 1: nominal interest rate = 10%, inflation…
A: For the deposit, the growth is more when the real interest rate is higher. This implies when there…
Q: What is the meaning of transfer of money
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: A bank's reserves include its Multiple Choice vault cash and deposits with the Federal Reserve.…
A: Answer: Banks are required to keep a portion of total deposits accepted by them as reserves. Banks…
Q: 8. Two software companies sell competing products. These products are substitutes so that the number…
A: Demand function for company 1 : X1 = 1000 (90 - p1/2 + p2/4 ) Demand function for company 2 : X2 =…
Q: Explain why supply shocks create more of a challenge for the Federal Reserve.
A: A supply shock occurs when an unexpected incident alters the supply of a product or commodity,…
Q: a. Why might a firm not wish to see a worker stay on until they are 75 years old?
A: A firm's output and profit maximization decision very much rely on the factor of its labor hiring…
Q: Explain how avoiding interest rate hikes could assist in accelerating economic growth
A: Economic growth is an increase in the production of goods and services in an economy. Increases in…
Q: The economy is in a recession. The government enacts a policy to increase spending by $4 billion.…
A: The correct answer is given in the second step.
Q: Use the Mundel Fleming model to compare and contrast the effects of an expansionary fiscal policy in…
A:
Q: All of the following might explain a firm offering quantity discounts except: a. lower costs of…
A: At the marketplace, firm uses various strategies to attract consumers and grow their business.
Q: Payoff Matrix (Profits) A Colludes A Competes A.S150,000 A S400,000 B Colludes BS150,000 8-S150,000…
A: In the game theory, there are different strategies available for the players to choose from and get…
Q: The reserve-requirement ratio Multiple Choice is raised for banks that frequently use the Federal…
A: At the marketplace, required reserve ratio refers to the percentage of total deposits that a bank…
Q: 7
A: The IS curve is the curve that shows the inverse relationship between the interest rate and output.…
Q: 1. Firms competing in an oligopoly could essentially cooperate a. and act as one monopolist and…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: A problem with the median voter outcome is that it does not take into account intensity of…
A: Concerning ranked-choice voting, Duncan Black introduced the median voter theorem in 1948. A rule…
Q: You own a bakery shop. One of your customers places an order for 12 cupcakes. You plan to charge the…
A: Marginal revenue is the change in total revenue from the sale of an additional unit. Marginal cost…
Q: Branch B: One of the investors wanted to buy a factory for the production of electrical…
A: japan korea tfc 1000000 800000 tvc 500000 700000 tc 1500000 1500000 ac 15 15
Q: The terms MO, M1, M2 classify money according to which of the following? Level of liquidity Reserve…
A:
Q: Explain what is meant by heteroskedasticity and discuss why this problem needs to be addressed if…
A: (Q) Explain what is meant by heteroskedasticity and discuss why this problem needs to be addressed…
Q: Ken and Daniel always eat miso soup and sushi in exact proportions: Ken eats one miso per two…
A: An Edgeworth box (given after Irish philosopher and economist Francis Ysidro Edgeworth, 1881) is a…
Q: Ana decides every day how many hours to work and how much beef to consume. She spends all income…
A: given that in the question, U(t,y)=2t^1/2 + y W=1 t=24-h where, Y is the consumption of beef and,…
Q: According to the climate graph, what is the range of temperature recorded in the city of Yakutsk?…
A:
Q: In a particular very small region, the consumer price index, C, depends on the current value of…
A: The Consumer Price Index (CPI) is a weighted average of prices for a basket of consumer goods and…
Q: What advantages and disadvantages do you see in using acap-and-trade system to reduce greenhouse gas…
A: Emissions trading, also known as "cap and trade," is a low-cost method of lowering greenhouse gas…
Q: You are offered to buy a 4 year coupon corporate bond at the beginning of its 7th month on its third…
A: Given: There is a coupon corporate bond for = 4 years Beginning of its 7th month on its third year…
Q: China is doubling its GDP every 7 years being fastest growing economies in the world history.…
A: According to Rule of 70: The number of years to double = (70 / Annual growth rate) Note: If the…
Q: Consider the following Table: Q TC 100 140 90 150 80 160 3 70 170 60 180 5 50 190 6. 40 200 30 210 8…
A: Average total cost or ATC is calculated by dividing total cost (TC) by quantity (Q). Marginal cost…
Q: 14. The salaries of Left Tackles increasing relative to other lineman and other positions generally…
A: The position of left tackle has risen to prominence. Other than the quarterback, it is usually the…
Q: 1.Discuss the main drivers of the performance of emerging market currencies since March 2020
A: Various countries' economies have suffered as a result of pandemics, with the virus being the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Consider a market with a monopoly firm. Sales revenue of this firm is $10,340,000$10,340,000, total cost is $4,400,000$4,400,000, and average cost is $2.00$2.00. Another firm wants to enter the market and provide the same product at a lower price. To intimidate the potential competitor, the monopoly firm intends to use predatory pricing.By how much can this firm reduce the price of its product without losses? Enter your answer in the box below and round to two decimal places if necessary.ssume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.19. Firm A is monopolist in x market, and it consumes one unit of y in order to produce one unit of x. It costs 5 + py TL to produce one unit of x. (py is the price of product y.) y is produced by a monopolist, B, and it costs 5 TL to produce one unitf of y. The demand for x is defined by px = 50-qx (px product price, qx quantity demanded). a) Assume that px is set by Firm A and py is set by Firm B. What would be the equilibrium prices for products x and y? Calculate Firm A and B's profits. b) Assume that Firms A and B merge together. What would be the equilibrium prices for products x and y? Calculate the profits of the new firm. c) Would the merger between A and B increase the consumer surplus? Why (not)?
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -3, while group 2's is -5. Your marginal cost of producing the product is $40. Instructions: Enter your responses rounded to two decimal places. a. Determine your optimal markups and prices under third-degree price discrimination. Markup for group 1:[ Price for group 1: $ Markup for group 2: Price for group 2: $Define the income elasticity of demand What is a normal and an inferior good? Define the cross-price elasticity of demand Compare and contrast monopoly and perfect competition market structure in long-run.Consumers with a high willingness to pay enjoy more surplus under a single-price monopoly. are indifferent between first-degree discrimination and a single-price monopoly. enjoy more surplus under first-degree price discrimination. O are likely to enjoy more surplus under a two-part tariff than a single-price monopoly.
- A drug company introduces a drug which is protected by a patent. Therefore,it is a monopoly in that specific market. Suppose that inverse demand for the drug isgiven by P(y) = 100 − y/2. And cost function is C(y) = y2 + 10y + 100.a. What is the profit maximizing output and price?b. Calculate the profit, consumer’s surplus, producer’s surplus and thedeadweight loss.Suppose that the patent expires and the market becomes perfectly competitive.c. Find the profit maximizing output and price. And compare your answer with(a).d. Calculate the profit, consumer’s surplus, producer’s surplus and thedeadweight loss. And compare your answer with (b).While firms in perfect competition maximize profit by producing at a quantity where the marginal cost of producing another unit of a good is equal the the marginal revenue from producing another unit, monopoly firms will maximize profit by producing at a quantity where marginal cost of producing another unit is equal to O the marginal profit O the average total cost the price of the good the marginal revenue (the same as perfect competition)Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Calculate Hot Air's profit-maximizing output and price. Calculate the economic profit. Hot Air's profit-maximizing number of rides is 3 a month and the profit-maximizing price is $160 a ride. >>> Answer to 1 decimal place. C Price (dollars per ride) 220 200 180 160 140 120 Quantity (rides per month) ܘ ܝ ܚ ܚ ܟ ܗ 2 3 4 5 Total cost (dollars per month) 80 160 280 440 640 880
- The graph shows the cost and revenue curves for a profit-maximizing mm. Which of the following is true about the firm? Price, Cost ($) O O P3 P2 P₁ Marginal Cost Average Total Cost 0 Marginal Revenue Demand Q₁ The firm operates in a perfectly competitive market, producing the allocatively efficient quantity and charging P1. Quantity The firm is a monopolist, producing the allocatively efficient quantity and charging P1. The firm is a natural monopoly, producing Q1 and earning positive economic profit. The firm operates in an imperfectly competitive market, producing Q1 and earning positive economic profit The firm operates in a monopolistically competitive market, producing Q1 and earning negative economic profitWhich of the following is true for a monopoly? * O A firm produces a product with many close substitutes. O The industry allows free entry and exit. Firms are price-takers. O The HHI is below 10,000. O It consists of only one firm.A monopolist and a perfectly competitive firm both * O face a downward-sloping demand curve O have their marginal revenue curve below their demand curve. can earn profit in the long run O have a horizontal marginal revenue curve maximize profit by producing the quantity at which marginal revenue equals marginal cost