Assume that a purely competitive firm has the schedule of average and ginal costs given in the table below. Complete the short-run supply edule and profits or losses for this firm.
Q: are n bidders. Bidder i values the first unit that she obtains at v; and the second unit at w¡,…
A: An auction is a market mechanism in which goods or assets are sold to the highest bidder. Auctions…
Q: At a military base in Texas, Corporal Stan Moneymaker has been offered a wonderful savings plan.…
A: The Internal Rate of Return (IRR) is a measure of the return on an investment that takes into…
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: Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which…
A: monopolistically competitive market: A monopolisticallyy competitive market is a market formation…
Q: Explain positive and negative externalities with the help of examples?
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 16. Assess whether the following would be counted as "unemployed" in the Current Employment…
A: The term unemployment refers to those people who have crossed a particular age limit and are not…
Q: 10. Evaluate the compound interest on $10101 for 3 years at the rate of 9% per annum compounded…
A: For compound interest, A=P(1+rn)nt = final amount = not known = initial principal amount =…
Q: A firm has two plants, which have Marginal Cost functions given by: MC(Q1)=2Q1 and MC(Q2)=3Q2. If…
A: A firm has two plants and produces at the following point. i.e., MR = MC(Q1) = MC(Q2)…
Q: Employ the production cost theory to explain why we consider the Fruit & VegetableMarket in…
A: In a hypothetical market structure known as perfect competition, numerous small businesses compete…
Q: 10. Which of the following transactions is/are not included in the balance of payments? a. Residents…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What are the definitions of the following economic principles and give 1 brief example each: -…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: In general, luxury goods tend to have elastic demand. Question 6 options: True False
A: The elasticity measures the change in quantity due to change in price. The demand is said to be…
Q: Using data from a nation's census, an economist produced the following Lorenz curves for the…
A: The Lorenz Curve depicts an economy's income distribution, whereas the Gini Coefficient quantifies…
Q: 2. Consider a society with only two people one rich and one poor-who have the same util- ity…
A: There are three methods of taxation as mentioned below: Progressive taxation: The tax rate…
Q: Why is CSR play a crucial role in attracting customers ?
A: Corporate social responsibility (CSR) is a business structure in which for-profit companies seek a…
Q: What is PPF
A: PPF is also important in economics. It can, for example, show that a country's economy has reached…
Q: By 2026, the expense of servicing the debt of the federal government is expected to be a larger…
A: Debt servicing - It refers to the payment made to satisfy a debt including principal, Interest, and…
Q: You are given the following information about the market for Birkin Bags: The formula for Demand is…
A: Demand function : Qd = 400,000 - 10P P = 40000 - 0.1Q Cost function :TC = 20,000,000 + 600Q…
Q: Calculate the GDP deflator and the rate of inflation for each year: (€ million) Nominal GDP Real GDP…
A: In economics, the GDP deflator is a measure of the money price of all new, domestically produced,…
Q: Suppose Mr. Mohammed, a seller in the Fruit & Vegetable Market in Al-Aweer, suddenly realized that…
A: In perfect competition , There are large no. of buyers and sellers. There are no barriers to entry…
Q: In the Mundell-Fleming model with floating, exchange rates, explain what happens to aggregate…
A: What is a Mundell-Fleming model? The open economy IS-LM analysis under the state of perfect…
Q: b. During winter the demand for lattes increases. Therefore, for a given supply, a. equilibrium…
A: Demand is defined as the willingness of a consumer to buy something, whereas supply is the total…
Q: The after-tax cost of debt is 15%. The cost of equity is 20%. What is the WACC? 18.1% 17.0% 18.0%
A: Weighted average cost of capital (WACC) represents a firm's average after-tax cost of capital from…
Q: Show demand formula (components) for a closed economy case
A: As per the economist, a closed economy is an economy that does not take part in international…
Q: Relevant knowledge is important because it is important to understand that the federal budget…
A: The federal budget is the total of the government's revenue and expenditures. Taxation is the…
Q: Relevant knowledge is important because it is important to understand that the federal budget…
A: Government budget balance can be expressed as the difference between the budget receipts and budget…
Q: 3. What is the annual equivalent rate of an investment that pays 5% semi-annually? a) 5.25% b) 5.00%…
A:
Q: Price measure Monthly Consumer Price Index (CPI) microdata CPI goods CPI services 1996-2006…
A: Inflation is the amount that a collection of products and services have increased in price during a…
Q: 1. Below is a graph of the market for gram of legal recreational cannabis in MA. What is the…
A: Answer to sub parts 4,5 and 6 are as follows: Equilibrium is a point where the market demand curve…
Q: put TFC 0 1 2 3 4 5 6 7 8 9 10 150 TVC TC AVC 0 40 100 180 280 400 560 760 1000 1300 1850 The above…
A: Both fixed costs and variable expenses are included in the total expense incurred by a company…
Q: human capacity
A: Human capacity means the power of the human. It means a person’s capabilities and strengths. How…
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: Suppose there are two major groups in the labor force, adults and teenagers, with adults divided…
A: Given information: Unemployment rate of teenagers = 19% Unemployment rate of men = 7% Unemployment…
Q: Examine the table below which contains some labour market data for the Bahamas (2009 - 2014) and…
A: The minimal amount of compensation that an employer is compelled to pay wage earners for the job…
Q: In a two good two consumer economy, utility functions are U1(x1,x2) =x1(x2)2 and U2(x1,x2) = (x1)2…
A: Walras states that for both demand and supply to be balanced, the excess supply in one of the…
Q: Suppose Mr. Mohammed, a seller in the Fruit & Vegetable Market in Al-Aweer, suddenly realized that…
A: In perfect competition , There are large no. of buyers and sellers The firm produces where price =…
Q: 3. Do macroeconomic measures apply to the entire perfectly? If not, how else are they valuable…
A: The study of how the economy functions as a whole is called macroeconomics. Macroeconomics…
Q: A consumer can consume three goods, x₁, x2, and x3. In the markets where she buys them, she is a…
A: Utility, in economics, implies the usefulness or happiness a consumer can get from a service or…
Q: Which event best fits the description of a natural experiment? Group of answer choices O. A…
A:
Q: BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $26, fixed costs are $155,000, and…
A: A break-even analysis is a financial calculation that weighs the costs of a new business, service or…
Q: 1- John has an income of $70,000 in 2018 when inflation was 8%. What is John's real income in 2018?…
A: Income of john = $70,000 Inflation rate = 8% Company overhead cost = $20,000 Cosf to produce each…
Q: Transfer payments and tax revenues mostly serve as examples of: automatic stabilizers. supply-side…
A: Simply said, fiscal policy is a forecast of taxation and government spending that affects the…
Q: Suppose labor demand decreases because of negative supply shock. How would you expect such a change…
A: Supply refers to the goods and services that the producers in an economy are willing to sell at a…
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: The city is a circle with a radius that extends from the point 0 to the bound- ary of the city x ̄.…
A: Exogenous variables refer to the explanatory variables that are determined or exist outside a model…
Q: Kk177. Suppose the market demand function is given as; Qd = 5I + 10P_1 − 0.4P^2 where I is…
A: Market Demand: Qd=5I+10P1-0.4P2 (a) To check the relation between the two goods, we will see the…
Q: 11. Employees compensated on an hourly basis are known as OA. piecework employees OB. salaried…
A:
Q: Question 4: Stability of the IS-LM model Consider the following short-run dynamics in the…
A: IS–LM model also known as Hicks–Hansen model expanded as investment savings (IS) and liquidity…
Q: Argentina has net capital outflow of $2,000, government purchases of $10,000 and consumption of…
A: GDP is the Gross Domestic Product. GDP is the sum of consumption , Investment , Government spending…
Q: For each of the events describe below, you are required to explain: 1. The market you are…
A: The forces of supply and demand determine the equilibrium value of a good's price and quantity in a…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- and cost 20 15 14 11 MC ATC 750 1.100 1.350 1,800 AVC MR Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above? None of the curves shifts; only the fixed cost curve, which is not shown here, is affected. All the cost curves shift upward. Only the average variable cost and average total cost curves shift upward: marginal cost is not affected. Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:1. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?2. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?3. Comment on your answers to parts (1) and (2).Graph below represents the cost structure of an individual firm in a perfectly competitive market. ATC MC 50 40 e AVC 30 20 10 8 10 11 12 Quantity (per day) a. Write down the break-even and the shut-down points (both corresponding quantities and prices) for this firm on the table below. quantity (q) Price (P) Break-even Point Shut-down Point b. If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output. Show your calculations If the price decreases to $25. C. i. Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Explain your answer ii. Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium?…
- Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.onsider the table below and assume the market price is $35 per unit. Totalproduct Totalfixed cost TotalVariablecost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantitydemanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.A firm on competitive market has the data about cost as below Q,0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 TC 100160208254290320340355370390430475525580640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. c. Determine the supply curve of this firm 3. A firm on competitive market has the data about cost as below Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TC 100 160 208 254 290 320 340 355 370 390 430 475 525 580 640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. C. Determine the supply curve of this firm
- E E on The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ2020? 10,000 Price, marginal cost (5) Pt-$5,440 Po B 0 190 20 Q=32 D Qo Quantity of cars, Q Marginal cost Isoprofit curve $150,000 Isoprofit curve 563,360 Demand curve 120 Select one: O a. Total surplus is not being maximised. Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars. O All possible gains from trade are being achieved as MQ Motors operates at its profit-maximising output and price. Od. The amount of consumer surplus is the area ADP. O e. Pareto efficient allocation is currently being achieved.Don't use chatgpt or any AI 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 $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?The table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Choco Lovers Cost and Revenue Quantity TC ATC MC of Gift Boxes ($) ($) ($) 60.00 12.00 2.00 10 67.50 6.75 15 5.17 2.00 20 92.50 3.00 25 117.50 4.70 5.00 30 152.50 5.08 7.00 Assume the profit-maximizing price is $3 per gift box, and then answer the following questions: a. Profit-maximizing quantity = gift boxes b. Total revenue = $ c. Profit = $ d. Profit per unit = $ per gift box
- Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Sold per Day 0 100 200 300 400 500 600 700 Price per Meal $3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 O A. 700 meals at $1.75 per meal. OB. 300 meals at $2.75 per meal. OC. 600 meals at $2.00 per meal. OD. 400 meals at $2.50 per meal. ✔ OE. 500 meals at $2.25 per meal. Total Fixed Cost $150 $150 $150 $150 $150 $150 $150 $150 ... Total Variable Cost $300 $500 $650 $750 $840 $905 $995 Total Revenue 0 $325 $600 $825 $1,000 $1,125 $1,200 $1,225The table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Choco Lovers Cost and Revenue Quantity TC АТC MC of Gift Boxes ($) ($) ($) 25 205.00 8.20 7.00 30 237.50 7.92 35 7.79 7.00 40 312.50 8.00 45 362.50 8.06 10.00 50 422.50 8.45 12.00 Assume the profit-maximizing price is $10 per gift box, and then answer the following questions: a. Profit-maximizing quantity = gift boxes b. Total revenue = $The table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Choco Lovers Cost and Revenue Quantity TC ATC MC of Gift Boxes ($) ($) ($) 25 205.00 8.20 7.00 30 237.50 7.92 35 7.79 7.00 40 312.50 8.00 45 362.50 8.06 10.00 50 422.50 8.45 12.00