In a market for kitchen bags, the highest price consumers are willing to pay is $ per pack and the lowest price producers are willing to accept is $8 per pack. Th competitive market equilibrium price is $10 per pack, at which 24 million packs sold. Suppose one company monopolizes the production of kitchen bags. As a the price rises to $12 per pack and the quantity sold decreases to 18 million pa The cost to producers of the last pack sold is $9.50. Assuming that both demar supply curves are straight lines, the consumer surplus in this market is $ A million, the producer surplus is $ A million, the total ga from trade are $ A million, and the deadweight loss is $ A million.
Q: You have two investments to choose from. Investment A pays an interest rate of 5% for 2 years and…
A: Future worth is a worth of a venture or resource on a particular date from now on. To put it another…
Q: explain the most likely reason that sydney water management has a monopoly
A: When talking about Monopoly of a firm, it can be said that a firm gets monopoly due to different…
Q: 8. Solow Model. Given the production function Y₁ = AK L3³, if A = 2, L = 4, 5 = 0.2 and d = 0.05.…
A: The Solow model is intended to demonstrate how the expansion of capital stock, labor force growth,…
Q: Interest rates adjusted for the effects of inflation are real variables, inflation is a nominal…
A: Any nominal variable adjusted for the effects of inflation is called a real variable.
Q: facing the flowing demand schedule P24-30 That Ondes P24 h Ops 27, and Q2 entals P1, and so one Fed…
A: Profit = Total Revenue - Total Cost = TR - TC A monopolist maximizes profits where MR = MC which…
Q: 3. The graph below gives the marginal profit P'(x) for a company when it produces x products. P'(x)…
A: Given,
Q: Explain 2 ways a government could increase the consumption of merit goods
A: Merit goods are the goods whose consumption and production should be encouraged as these goods add…
Q: A country has 50 million people, 30 million of whom are adult noninstitutionalized civilians. Of the…
A: Discouraged workers refer to those workers who have hove hooked up looking got work. So they are not…
Q: Examine the concept of collusion and investigate the differente types of collusion that exist.
A: Collusion is the act where the goup of firms follow the anti competitive behavior and instead and…
Q: 25. Which of the following is NOT a non-price method that a supplier could use to allocate a good…
A: Non price tools is a showcasing technique that normally incorporates limited time consumptions, for…
Q: Question 3. Nominal and real exchange rates (a) The table below shows the nominal exchange rate…
A: The change in usual prices of goods and services that are purchased by households is what is…
Q: Suppose the government imposes a price floor of $60. This price floor is supplied will be and the…
A: A price floor is a type of price control. A price floor is a lower limit on the price that is…
Q: This is one of the three durable solutions provided by UNHCR, and it refers to the case that…
A: The United Nations High Commissioner for Refugees (UNHCR) is a UN body tasked with assisting…
Q: With respect to environmental regulations, there is a conflict between the middle- and low-income…
A: Environmental regulations are complex indisplinary efforts to protect the environment from problems…
Q: Why mu Ist the margina equal to the marginal cost for a producer? Explain. ue be
A: Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit…
Q: John plans to make 10 equal annual deposits starting one year from now into a fund that pays an…
A: Let the John annual deposit starting one year from now is A i =10% The cashflow diagram is shown…
Q: equation for the tax-adjusted user cost of capital is (r+d)PK 1-t (1-t)i-ne. =. (r-d)pk. -. (r+d)pk.
A: Given that, real interest rate,r = 0.16 depreciation rate,d = 0.06 Tax adjusted user cost, = 14.72…
Q: Price Ali Kelly Jessie Market 4.00 4 0 1 3.00 8 2 2 2.00 12 4 3 1.00 16. 6 4 Quantity Supplied By:…
A: *Answer: Market demand is the sum of individual demand at different prices. Market supply is the…
Q: Q1: Zainab has a weekly budget of $48, which she likes to spend on magazines and pies. A. If the…
A: The budget line is a graphical outline of all potential mixes of the two products that can be…
Q: In macroeconomic analysis, the assumption that potential output (Y*) is changing is a characteristic…
A: Potential GDP refers to the level that maximizes output with utilizing all the given resources and…
Q: Using a diagram, explain what is meant by income and substitution effect of a price change
A: A change in the price of a good has two effects namely income and substitution effect such that the…
Q: Using the supply and demand analysis of the market for reserves, indicate how the following…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: Our textbook discusses two methods of regulating natural monopolies. One of them is price cap…
A: A price-cap regulation is a kind of economic regulation that limits the amount of money a utility…
Q: If the money supply is growing at a rate of 8 percent per year, real GDP (real output) is growing at…
A: The velocity of cash can be determined as the proportion of ostensible GDP (GDP) to the cash supply…
Q: Define Oligopoly market structure . Discuss the barriers to entry and exit in an oligopoly market .(
A: Oligopoly The term "oligopoly" refers to a small group of producers who work together, either…
Q: . Describe the sociological approach to entrepreneurship. How can this approach be used to promote…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: An economy produces only three types of goods: apples, oranges and bananas, production units and…
A: Nominal GDP is the value of all final goods and services produces in any economy in a given year. So…
Q: Which option is the best answer? An example of a consumption function is C - 50+ 0.85Y. When Y is…
A: "A consumption function indicates a relationship between consumption and disposable income. The…
Q: 1. What are the characteristics of a good theory? What makes a theory practical? How can an…
A: An economic theory is a collection of concepts and principles that describe how various economies…
Q: Thingamabob Sales Yaster Inc. is trying to enter the thingamabob market. The research department…
A: The break even point refers to the point where the total cost is equal to the total revenue,…
Q: Imagine that in the state of California a chemical producing firms has a marketable permit that…
A: A "carbon credit" permits the owner to emit a specific amount of carbon dioxide or other greenhouse…
Q: At a price of $4.86 per pound, the supply for cherries is 16,205 pounds, and the demand is 10,340…
A:
Q: Consider an economy with three people and two goods: private good (x) and public good (y). Suppose…
A: Answer - Public Goods :- Public goods which are non-rivalious and non-exhaustive in nature and…
Q: MC ATC 11. Refer to the above graphs for a competitive market in the short run. Which of the…
A:
Q: Find the Nash equilibrium in mixed strategies for this constant-sum game: Navratilova Navratilova DL…
A: A constant sum game (CSG), is a sort of game concept wherein there may be natural opposition among…
Q: Given the following parameters: Perfect Competition in Output Market Perfect Competition in Labour…
A: The wage is determined by the market forces of demand and supply. The equilibrium wage is equated…
Q: A perfectly cometitive firm is likely to have its elasticity value a). be in the inelastic range b).…
A: Perfectly competitive is a market where there is large no of buyers and sellers. The firm is the…
Q: Explain why changes in consumption are unpredictable if consumers obey the permanent-income…
A: The permanent income hypothesis is an economics model that attempts to explain how consumption…
Q: using economic concepts , discuss the impact of the following events on the equilibriumprice level…
A: Contractionary monetary policy is used by a central bank in order to slow down the economy, with the…
Q: Neuratility of money means that an increase in the quantity of money Raises all prices in the same…
A: Neutrality of money states that the money is a factor which is neutral in behavior and it has no…
Q: Consumer's Utility: U=2Y2-16Y What is the utility maximizing level of income?
A: Utility function : U = 2Y2 - 16Y In above expression utility is a function of income . Utility is…
Q: WAGE (Dollars per hour) 20 18 16 14 12 10 co 8 6 Supply Demand 0 0 50 100 150 200 250 300 350 400…
A: Tax burden refers to the share of tax that consumers and producers bear in the case of an imposition…
Q: Explain the law of one price. A basic IKEA Lack table can be bought around the world for the…
A: The law of one price remarks that in the scarcity of friction between in the global markets and also…
Q: This is on the basics of the IS-LM model. The model is given by the following system of equations Y…
A: Capital stock is how much normal and favored shares that an organization is approved to issue —…
Q: A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so…
A: Costing is a critical component of running a business. We usually divide the cost of any…
Q: Consider the null and alternative hypotheses He: -5.6 vs. H₁ :>-5.6, where the sample mean is 2-4.9…
A: Null Hypothesis refers to the proposition that the set of observed variables of the observed…
Q: If I have a simple discount note for 75 days (ordinary interest), a discount of $150, and have…
A: Given information: Simple discount note for 75 days The discount is $150 Proceeds are $11850 and…
Q: TC = 116 +27Q+4Q² What is the average fixed cost when 5 units are produced? Enter as a value, ROUND…
A: Answer: Given, Total cost function: TC=116+27Q+4Q2 Fixed cost: fixed cost remains fixed in the short…
Q: 7. On January 12th 2010 a devastating earthquake with a magnitude of 7.3 struck Haiti. As a result,…
A:
Q: We have learned the definition of monopoly as a market with one seller. Let's take some time to…
A: A market structure is described by a single seller, selling a special product in the market. In a…
11
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- MelCo’s Xamoff The global pharmaceuticals giant, MelCo, has had great success with Xamoff, and over-thecounter medicine that reduces exam-related anxiety. A patent currently protects Xamoff from competition, although rumors persist that similar products are in development. Two years ago, MelCo sold 25 million units for a price of $10 for a package of ten. Last year it raised the price to $11, and sales fell to 22 million units. Finally, a financial analyst estimates the cost of production at $2 per package. (a) Estimate the elasticity of demand for this product at $10. Is this price too high or too low? (b) Estimate the elasticity of demand for this product at $11. Is this price too high or too low? (c) Based on your answers to (a) and (b), what can we say about MelCo’s profit-maximizing price?Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $160,000 to $120,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 220 200 180 160 140 120 100 80 60 40 0 Jabari 0 + 1 True…Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $160,000 to $120,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 220 200 180 160 140 120 100 80 60 40 20 Jabari 0 0 1 2 3…
- Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $105,000 to $90,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) Jabari 165 150 135 120 105 90 75 60 45 30 15 D 0 True 1…Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Jabari’s HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $105,000 to $90,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000Pricing at Montoya Steelworks Montoya Steelworks Montoya Steelworks is a fully integrated steel producer in Florin City in the small nation-state of Florin. However, as a small steel firm, its costs are quite high: To make q tons of steel costs Montoya 2000 + 20q+q². Demand for Steel As the only steel producer in Florin, Montoya has a monopoly on selling steel within Florin's borders. Demand for steel (in tons) in Florin is given by D (p) = 150 - PF, where pr is the price that Montoya charges for each ton of steel. Meanwhile, Montoya also has the option to sell steel in the nearby nation of Spain. The Spanish steel market is extremely competitive, and the price of steel there is $100/ton. As Florin is a small steel producer, Florin will not have any effect on the price of steel in Spain, regardless of the amount it sells. Optimizing Profits for Montoya You must decide how much steel to produce and how much will be kept for local sale; your goal is to maximize the profits of Montoya…
- Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced eight trucks, but then decided to increase production to nine trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $80,000 to $40,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) 220 200 180 160 140 120 100 80 60 40 20 0 Jabari 0 1 O…There are two movie theaters in the town of Harkinsville: Modern Multiplex (Firm 1) and Galaxy (Firm 2). The demands for each firm are: Q1 = 125 – 3.5P1 + 2P2 and Q2 = 125 – 3.5P2 + 2P1, where quantities are measured in hundreds of moviegoers. Costs per customer are: $4 for Firm 1 and $3 for Firm 2. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Use commas (30,000 instead of 30000) Complete the following table. P1 P2 Q1 Q2 Profits F1 Profits F2 Firm 1 colludes, Firm 2 cheats w/ QDC 2,824 Firm 1 colludes, Firm 2 cheats w/ QBRFAsim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Asim initially produced eight trucks, but then decided to increase production to nine trucks. The following graph gives the demand curve faced by Asim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Asim must lower the price from $80,000 to $40,000 per truck. Notice that Asim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) 220 Asim 200 180 160 140 120 100 80 60 40 20 0 0 1 True 2 False 4 5…
- There are two movie theaters in the town of Harkinsville: Modern Multiplex (Firm 1) and Galaxy (Firm 2). The demands for each firm are: Q1 = 125 – 3.5P1 + 2P2 and Q2 = 125 – 3.5P2 + 2P1, where quantities are measured in hundreds of moviegoers. Costs per customer are: $4 for Firm 1 and $3 for Firm 2. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Use commas (30,000 instead of 30000) Complete the following table. P1 P2 Q1 Q2 Profits F1 Profits F2 Duopoly competition 2,059 Collusion 2,360Le Jouet is a French firm, and it is the only seller of toy trains in France and Russia. Suppose that when the price of toy trains increases, Russian children more readily replace them with toy airplanes than French children. Thus, the demand for toy trains in Russia is more elastic than in France. The following graphs show the demand curves for toy trains in France (Dr) and Russia (DR) and marginal revenue curves in France (MRF) and Russia (MRR). Le Jouet's marginal cost of production (MC), depicted as the grey horizontal line in both graphs, is $12, and the resale of toy trains from Russia to France is prohibited. Assume there are no fixed costs in production, so marginal cost equals average total cost (ATC). PRICE (Dollars per toy train) 40 36 32 28 Total 24 20 16 12 8 4 0 Country France Russia France MR Price (Dollars per toy train) 20 20 2 4 6 8 10 12 14 16 18 20 QUANTITY (Millions of toy trains) N/A O True MC-ATC OF O False N/A (?) Single Price Quantity Sold (Millions of toy…Alex Potter owns the only well in a town that produces clean drinking water. He faces the following demand P=100-Q, and marginal cost MC=20+2Q, marginal revenue MR= 100-2Q curves. In order to maximize profits, Alex should charge a price of $60 at the profit maximizing quantity with a marginal revenue equal to $60. $60 at the profit maximizing quantity with a marginal revenue equal to $80. $80 at the profit maximizing quantity with a marginal revenue equal to $80. $80 at the profit maximizing quantity with a marginal revenue equal to $60.