How would you best describe the economic profit (or loss) at the profit maximizing quantity q* in the long run for a monopolistically competitive firm? a) both a profit and a loss b) a profit
Q: Q.3.1 A store that sells maize meal discovers that when the price of 1kg maize meal Is R24 per…
A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…
Q: When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500…
A: Dear student, you have asked multiple sub-part questions in a single post and have not mentioned…
Q: Explain Unfair Trade Practices?
A: Unfair trade practises are defined as misleading tactics used by producers and manufacturers.…
Q: If the nominal interest rate is 4.2 percent and expected inflation rate is 3 percent, the real…
A: real interest rate is the rate which is not corrected for inflation and real interest rate is…
Q: 5. Exogenous influences of New Supply 6. How market prices are determined in the property market?…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Explain in your own words what it means when an outcome is reliable?
A: Reliability is the another name of consistency.
Q: The Children's Theatre Company in Minneapolis produces high quality theater for kids. Demand for…
A: A monopoly is a point at which one organization and its item rule a whole industry by which there is…
Q: Neighboring parishes in Louisiana have agreed to pool road tax resources already designated for…
A:
Q: Explain how the application of monetary and fiscal policy might be used to stimulate a country’s…
A: in Covid19 time most of economies has impacted badly and experienced slowdown phase and with help of…
Q: 8) Consider the economy of Hicksonia. a. The consumption function is given by C=200+0.75(Y-T) The…
A: The consumption function refers to an economic formula that provides a representation of a…
Q: What is the importance of establishing a central bank? 2. How does a financial system work?
A: central bank is the financial institution which performs promotional , regulatory functions and…
Q: Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the…
A: “Since lt is a multiple question, we will solve the first question. If you want any specific…
Q: A house and lot can be acquired by a downpayment of P520,000 and a yearly payment of P100,500 at the…
A: Given down payment = 520000 P Yearly payment = 100,500 P Time = 10 years Interest rate = 8 %
Q: Why would Dreamforce include a special series of sessions for the CEOs of customer companies?…
A: Marketing is experiencing a digital change, authorized by new devices and technologies, to navigate…
Q: what happens to elsticity if demand curve is linear (straight curve)?
A: Demand curve is the graphical representation of the demand for the good which indicates various…
Q: The "reformers" of Southeast Asia focused economic policy on tourism socialist principles and the…
A: Answer is given below
Q: 1) Roma is considering getting either a used car or a scooter to get back and forth to work. The car…
A: Answer: A car and scooter both can be used to go to the office. Thus these can be substituted in…
Q: Consider the following economy. Individuals are endowed with y units of the consumption good when…
A: Finance is a forecast of sales and spending for a particular destiny time frame this is typically…
Q: Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy
A: Monetary and fiscal policy are the two most well-known techniques for affecting a country's economic…
Q: firm plans to begin production of a new product. The manager must decide whether to buy the product…
A: Annual fixed cost 160,000 and $190,000 Variable cost $5 and $4 Annual volume A firm has three…
Q: Exhibit 4-3 w 0 02 Quantity of Good X Refer to Exhibit 4-3. If price P₁ is a price ceiling, then…
A: Equilibrium is accomplished at the price at which amounts demanded and provided are equivalent.
Q: Which of the following characteristics is not included in the definition of a city? a. permanence b.…
A: City is a large area where humans settle.
Q: For each of the following pair of goods, which good will you expect to have more elastic demand and…
A: Elasticity measures the responsiveness of quantity demanded to changes in price level.
Q: ANSWER E Suppose market demand for tires in millions is given by the equation QD = 12 – P. Tires…
A:
Q: a) A thermomix is advertised at RM8000 less 40%, 12% and 2.5%. Find the net price. b) Saira, a…
A: Since you have asked multiple questions, we will solve first question for you. In case you want any…
Q: Consider the following payoff matrix for two oligopolists that are deciding what quantity to…
A: A Nash equilibrium is such an outcome in which neither of the players has an incentive to change…
Q: We learn that the elasticity of demand is a relative concept and of course, it varies over time. Can…
A: Elasticity of demand is the concept that explains how a change in the price of a certain good…
Q: Describe the connection between urban ecology and sustainable cities. List three actions a city can…
A: Urban ecology may be defined as the study of the impact of the environment and urbanization on the…
Q: B) Is this price elastic or inelastic? Should the boosktore charge more or less to maximize revenue?…
A: The measure that depicts change in quantity being demanded of a good with respect to its price level…
Q: Which branding strategy is Hilton using? Why is this appropriate for Hilton?
A: Hilton is using a brand strategy that makes its services unique from others. Hilton occupied the…
Q: 2. Based on your answer in 1, identify two key features of long run equilibrium and determine the…
A: Answer: The two key features associated with long-run equilibrium are given as: (1). In the long…
Q: A monopolist has the following fixed and variable costs: Price Quantity Fixed Variable Cost Cost…
A: Here, the given table provides information about price, quantity, fixed cost and variable cost of a…
Q: Alice has been in a defined-contribution pension scheme since she was 35 and will retire in one…
A: There are different options available in the market these days to invest surplus funds so that one…
Q: which of the following statements is true? O since fixed costs are constant as output changes in the…
A: The statement that since total fixed costs are constant as output changes in the short run, it…
Q: Consider a market where supply and demand are given by QXS. = −14+Px and Qxd=91 - 2Px. Suppose the…
A: We are given, Qxs = -14 + PX and Qxd = 91 - 2PX, At the equilibrium level, market supply = market…
Q: How would you best describe the economic profit (or loss) at the profit maximizing quantity q* in…
A: In monopolistically competitive market, there are large number of firms producing differentiated…
Q: With the help of illustrations, show how the consumer attains equilibrium under the indifference…
A: Indifference curve shows the possible combinations of two goods which give same satisfaction to the…
Q: Let's assume a ski resort has the following demand function for hotels rooms 90=50-10-PL where P is…
A: Cross price elasticity shows percentage change in quantity demanded of good 1 due to percentage…
Q: 6. In an Edgeworth box for two consumers, A and B, with endowments of = commodities Xa and d Ya are…
A: Edgeworth box Edgeworth's box theory talks about the consumption of two goods by two persons. A…
Q: 1. (Production) Jasmine has just inherited a restaurant. In the short run, she has to stick with the…
A: The short-run is a notion that states that at least one input is fixed while the others are variable…
Q: D) If the Fed sets the money supply at the same time as people are setting prices, so that everyone…
A: The rational expectations theory posits that people base their choices on human rationality, data…
Q: Louis Wirth relied on three characteristics to explain the development of urbanism as a way of life.…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Question 5 • Consider a baseline long run steady state equilibrium where output is 20 trillion…
A: Aggregate demand refers to the total demand of goods and services in an economy in a given period of…
Q: Given considerations of cost and equitabledistribution, what is the optimal commitmentthat should be…
A: System of healthcare delivery It is a network of facilities dedicated to providing the best possible…
Q: 2) For both political and macroeconomic reasons governments are often reluctant to run budget…
A: Given information Aggregate demand function Y=C0+C1(Y-T)+I+G C0---- autonomous consumption C1---…
Q: Describe what benefits may come from a reproductive policysuch as China’s. Now describe several…
A: The government should be empowered to impose severe penalties on citizens who refuse to follow such…
Q: Elaborate on FOUR or more of the challenges has overcomes by Malaysian government to success in…
A: Malaysia had large fiscal deficits and high public debt-to-GDP ratios in the 1980s. Beginning in the…
Q: Bell-land's CPI for 2017 was 200. The CPI for 2016 was 190 and for 2015 the CPI was 180. What was…
A: Answer: Given CPI for 2015 = 180 CPI for 2016 = 190 CPI for 2017 = 200 The formula to calculate the…
Q: There is only a single drug to treat Diwakar’s disease. This is an example of a Threat of…
A: With there only a single drug to treat the disease, the firm has market power to exploit prices to…
Q: Suppose Indian government borrows 50,000/- more next year than this year. Use a supply-and-demand…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Step by step
Solved in 2 steps
- Σ B. 20 10 50 30 20 PRICE (Dollars per bat) Homework (C (91. 4. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. 06 Mon Comp Outcome Min Unit CAst 09 40 10 MR Demand pleuwe 09 06 QUANTITY (Thousands of bats) Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that ▼ at the optimal eticall the miair MacBook Pro ACID & 5. R H N command commStudy Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimumWhat are the most important differences between perfectly competitive markets and monopolistically competitive markets? Give two examples of products sold in perfectly competitive markets and two examples of products sold in monopolistically competitive markets.
- Consider the diagram below depicting the demand and cost conditions faced by a monopolistically competitive firm. a. Use the graph to show how price and output will vary depending upon which point the firm produces. Indicate the levels that will be produced under profit maximization, productive efficiency, and allocative efficiency. Instructions: (1) Use the tool provided 'Profit maximizing' to plot a point showing the price-quantity combination when the firm is maximizing profit. (2) Use the tool provided 'Productive efficiency' to plot a point showing the price-quantity combination when the firm is producing the productively efficient output level. (3) Use the tool provided 'Allocative efficiency' to plot a point showing the price-quantity combination when the firm is producing the allocatively efficient output level. Tools MC Productive eff Profit maximiz ATC Allocative effi Demand MR Quantity b. In which of these three situations is the highest output level produced? O Profit…Consider the diagram below depicting the demand and cost conditions faced by a monopolistically competitive firm. a. Use the graph to show how price and output will vary depending upon which point the firm produces. Indicate the levels that will be produced under profit maximization, productive efficiency, and allocative efficiency. Instructions: (1) Use the tool provided 'Profit maximizing' to plot a point showing the price-quantity combination when the firm is maximizing profit. (2) Use the tool provided 'Productive efficiency' to plot a point showing the price-quantity combination when the firm is producing the productively efficient output level. (3) Use the tool provided 'Allocative efficiency' to plot a point showing the price-quantity combination when the firm is producing the allocatively efficient output level. Tools MC Produ eff Profit maximiz ATC Allocative effi Demand MR Quantity b. In which of these three situations is the highest output level produced? O Profit…Suppose MPH Book Store is the only bookstore in the Kota Warisan area near XMU. Figure 3 shows the demand curve for economics books and MPH's Book Store marginal revenue (MR) curve and marginal cost (MC) curve. MPH's Book Store will maximize its profit and set the price of the economic book equal to and has a total annual revenue of 100 80 60 MC 40 20 D MR 20 40 60 80 100 120 Quantity (units per day) Figure 3 O a. $40, $1,600 O b. No correct answer O c. $60; $1,200 O d. $40; $800 Price and costs (dollars per unit)
- The following graph shows cost curves for a monopolistically competitive firm. Place the black point (cross symbol) on the graph to indicate the short-run profit-maximizing price and quantity for a monopolistically competitive firm. 500 450 PRICE PER UNIT (Dollars) 400 350 300 250 200 150 100 50 50 MC 0 0 50 100 150 LRAC MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) + Monopolistically Competitive Outcome The following graph shows cost curves for a perfectly competitive firm. Place the grey point (star symbol) on the graph to indicate the point where a perfectly competitive firm would produce. ? 500 450 400 350 300 * Perfectly Competitive OutcomeThe folowing diagram shows the curves for perceived demand, marginal revenue, and cost for Manuela's Pizza, which serves Mexican-style pizza. Manuela's is one of many other fast food restaurants in this town. MC Price and Cost ATC Demand Quantity of piezas Which statement describes the transibon to the long nun? Select the best answer. O More fast food restaurants will enter the market, and Manuela's demand curve will become more elastic. Manuela's will raise its prices since there is a large demand for its pizzas. O More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic. Manuela's will experience lower costs of production because it will expand its output.The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants Marketing/Sales Accountants Price per each Profit on just that software PowerPoint Total profit on all software $76 $200 $25 A la carte pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? PowerPoint Excel $100 $100 $250 $ Word $200 $125 $25 Excel Word Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price $ Total Profit S Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme?$ Is this mixed-pricing scheme…
- The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. Use the black point (plus symbol) to indicate Crest's profit-maximizing output and price. (?) Price, Cost, Revenue Demand ATC O True MR Quantity of Crest Toothpaste True or False: Crest's profit is positive. + Profit Maxwhy do we mean by full cost pricing and why is it importantSuppose that the manager of a donut shop tellsyou that he sold 220 donuts today, for a total revenue of $220 and average revenue of $0.90. What’swrong with this story?
