firm in monopolistic competition produces an output level Q1 = 100 where marginal revenue is equal to marginal cost. At this output level, the price is P1 = $75 and the average total cost is ATC1 = $25.   Draw the graph for the monopolistically competitive firm in the short-run equilibrium using the numbers provided above (include ATC, D, MC, and MR curves). Label everything! On the graph, show the markup and the excess capacity for this firm. Draw the graph for the monopolistically competitive firm in long-run equilibrium

Q: Prices LRAS1 LRAS2 AD1 AD2 Ofet Ofe2 Output Refer to Figure above. Long-term economic growth would…

A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…

Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x1a2 – 2x – 23/2, when the weekly…

A: Answer is given below

Q: The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years…

A: According to question,  Annual withdrawal (C) = $2,000 Number of annual payment (n) = 20 First…

Q: good, A is the alternative price of an alternative good, and Y the incor e consumers. nen P= 6, A =3…

A: The Income elasticity of demand is the amount demanded of a specific item relies not just upon its…

Q: Identify the economic participants represented by B and

A: Circular flow diagram is the diagram which shows the linkages/dependence of different sectors of the…

Q: For the following alternatives compute the Delta B/C ratio of Alternative D minus Alternative A. Use…

A: Project A D Initial Investment -1500 -5200 Annual Benefit 350 850 Salvage Value 320 2300…

Q: The average household income in the United States in 1975 was $13,800 and Consumer Price Index was…

A: A consumer price index (CPI) is a price index, the price of a weighted average market basket of…

Q: A monopoly is forced to pay higher taxes to help their government lower their debt. Even with this…

A: The answer is - c. The monopoly to increase its price by more than the amount of the new tax.

Q: Finley's orchard incurs $90,000 per year in fixed costs. Last year, their total production was 100…

A: Fixed cost is the cost that remains same at all levels of output. Average Fixed cost is the Fixed…

Q: Consider the market for new economics textbooks. The following graph shows the demand curve for new…

A: The markets are the place which assist the economies in allocation, and distribution of the…

Q: explain wheather or not you agree with the following statement" A company has R500 million in a…

A: Economic capital could be a measure of risk in terms of capital. more specifically, it is the amount…

Q: What is sampling? Explain the differences between probability and nonprobability samples and…

A: Answer is given below

Q: Exercise 7.3 An insurer issues a whole life insurance with sum insured $500 000, with premiums…

A: Net premium is defined as the insurance premium that includes he amount that is needed for the…

Q: Subject: Manegerial economics & policy Case study: PC World PC World is a major retailer of…

A: A complementary goods is a good whose utilization is connected with the utilization of a related or…

Q: Assume that Canada has a fixed exchange rate regime. Explain the effect on the foreign exchange…

A: Here, it is given that the Canada has a fixed exchange rate system to make trade in international…

Q: Consider the process where S0 = 0 and {ut : t ∈ Z} is an i.i.d. random variable with N(0,σ2). a)…

A: * SOLUTION :-    (5) From given information the answer is provided as below

Q: University education: is the only way for people to earn an income above the median income. should…

A: University education is the upper level education that is required to gain specialized knowledge and…

Q: 11. Price Stickiness The degree of price stickiness in an economy plays an important role in…

A: Price stickiness refers to the sensitivity of the price to change due to the change in the market…

Q: Activity 2: Taxes and Salary are related to one another when it come to purchasing power which…

A: The worth of a currency is stated in terms of the number of commodities or services that one unit of…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: * SOLUTION :-

Q: What happens to total revenue if a) demand elastic, price decrease. b)demand inelastic, price…

A: Price  Revenue Elasticity     When Price increases When price decreases There will be no change…

Q: For the demand function Q = 700 – 7P+3A³ + 0.008Y2 where P is the price of the good, A is the…

A: Q = 700-7P+3A3+0.008Y2 3. Q = 700 - 7(6) + 3(3)3 + 0.008(90)2 Q = 700 - 42 - 27 + 64.8 Q = 695.8 ep…

Q: What are the disadvantages of petrol subsidies?

A: Subsidy is a defined as the form of Government help which is provided to lower down the price of…

Q: FBI can impact the balance of payments of. (LO#4/5) Select one: O a. home country + MNCS O b. host…

A: Unfavourable disequilibrium in balance of balance is defined when payments is more than receipts.…

Q: The function f(x, y) = (x + y)* – a² – y? – 6xy | has stationary points at some of the following…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…

A: Philips curve is a curve that shows inverse relationship between unemployment and inflation. If…

Q: 3) The short run is a period of time in which A) nothing the firm does can be altered. B) the amount…

A: "Short run is a period of time in which firm is not in a position to alter all the factor inputs of…

Q: In​ 2009, the price of​ Amazon's Kindle 2 was ​$359​, while iSuppli estimated that its marginal cost…

A: Learner's index measures the market power of the firm that enables the firm to charge price greater…

Q: Over the years, Americans have spent a smaller percentage of income on food and a larger percentage…

A: the paradox of value describes the vast difference seen in the prices of certain essential goods and…

Q: Camille's utility is given by U(x, y) = x0.5y0.5. She has an endowment of x = 100 and y = 100, while…

A: U(X,Y) =( X^0.5) (Y^0.5) Now, MUx =  0.5 (Y^0.5)/ (X^0.5)   Also, MUy = 0.5 (X^0.5)/ (Y^0.5)   MRS =…

Q: H2 Suppose the economy is operating at its potential output and inflation equals its long-run level.…

A: Unemployment refers to the concept of people in the labor force having nowhere to work. The work…

Q: Suppose a market basket contains two goods: bread and milk. Use the table below to calculate the…

A: Given: Quantity of bread=488 Quantity of milk=323

Q: The iron triangle means there are inevitable trade-offs between the three key aims of welfare…

A: Unemployment refers to state in which all those people willing to work at existing wage rate are…

Q: C = $3 trillion i = $1.3 trillion G mpc = 0.75 d = 0.3 %D = $3 trillion X = 0.2 = $3 trillion NX =…

A: *Answer:    Real Interest Rate refers to the interest rate that has been adjusted for inflation. It…

Q: Legendary for his business and investment acumen, Warren Buffett is frequently called the “Oracle of…

A: Elaborating the statement of the buffet, A producer operating at a higher cost cannot sustain itself…

Q: Prove that Cov(a1X + b1, a2Y + b2) = a1a2Cov(X,Y).

A: We are required to prove that:- Cov(a1X+b1, a2Y+b2)=a1a2Cov(X,Y) Please find the images attached…

Q: . Consider an economy in which the amount of investment is equal to the amount of saving (i.e., the…

A: The golden rule may be explained in terms of capital's marginal product of capital and depreciation.…

Q: n the New Keynesian model, suppose that in the short run the central bank cannot observe aggregate…

A: "Since you have posted a question with multiple sub -parts. We will solve firth three sub-parts…

Q: I need help with question 2. You guys have already answered number 1.  Externalities and Tax…

A: Answer 2. An externality is a cost or benefit incurred or received by a producer that is not paid…

Q: You are consultant at large international consultancy (“PharmCons”), specialized in  consulting…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…

Q: ie demand function for a company is p = 200 - 31 and the cost function is given by C(z) U+ 80z - z.…

A:

Q: The United States is an example of a Federal system where power is shared between the central…

A: A federal government is a system of power sharing that has a central national government and local…

Q: Identify from the situation positive and normative economics and give your reasons.

A: Positive and normative economics are the two disciplines of modern economics.Positive economics…

Q: Alice and Bob are playing a repeated game in which a certain stage game is played twice in…

A: In the above game , the stage game is played twice in succession . Stage game refers to the base…

Q: 12. Explain in details the model graph in the North West Government North-West LRAS economy SRAS P1…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Using a supply and demand diagram, show a labor market with a binding minimum wage. Use a diagram to…

A: The markets are the place of interaction and meeting for the buyers and sellers. In the markets, the…

Q: 5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…

A: Given: Cost at time 0=200,000 Interest rate=12%

Q: : An economy is described by the following equations: Z=C+l+G C=600+0.6(Y-T) I=300 G=700 T=600 )…

A: Introduction Equation of an economy has given. Z = C + I + G C = 600 + 0.6 ( Y - T) I = 300, G =…

Q: 4 Suppose a closed economy not in full employment. Consider a positive IS shock. Describe in detail…

A: The term IS refers to the fact that in a closed economy  the curve represents the income and…

Q: : An economy is described by the following equations: Z=C+l+G C=600+0.6(Y-T) I=300 G=700 T=600 )…

A: (C) Consumption function: C = 600 + 0.6(Y-T) Differentiate C w.r.t Y to get MPC => MPC = dC /dY…