in a perfectly competitive industry, in the long run, firms earn a positive economic profit firms earn zero economic profit firms earn a negative economic profit firms might earn a positive, zero or negative profit " "
Q: Suppose that a firm has a production function given by f(21, 22, 23) Arizz If a 2.10, b= 1.10, and…
A: Marginal product is calculated by differentiating total product with respect to change in variable…
Q: Question 12 Under which of the following two scenarios would demand be more elastic? Explain. (a)…
A: Demand elasticity is the degree to which demand changes in response to changes in other economic…
Q: own experiences to describe when you were part of a transaction that resulted in a positive…
A: Externality refers to the activity done by an individual that may result in cause to society but not…
Q: Question 13 Widening term spreads on government bonds, along with the narrowing of risk spreads…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In the year 2023, aggregate demand and aggregate supply in the fictional country of Gizmet are…
A: Aggregate Demand and Aggregate Supply Consumer spending refers to the entire amount of demand for…
Q: Suppose that LRTC = 60q - 8q2 + 1/3q3 a. Explain how you would estimate a cubic TC function using…
A: Long Run total Cost function : = 60q - 8q2 + 1/3q3 A competitive industry in long run achieves…
Q: (Problems 27 to 29) Use the benefit-cost method to determine which of the alternative bridges below…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: As an operations management consultant, you have been asked to evaluate a furniture manufacturers…
A: Given information: Sales = $23.5 million Cost of goods sold = $20.8 million Accounts receivable =…
Q: Question 47 Not yet answered If a single large employer bargains with an inclusive union, the…
A: Labor Market Model The supply and demand for labor, wherein employees give the supply and employers…
Q: 1. True/False: Partial equilibrium analysis only concerns supply or demand alone, whereas general…
A: Partial Equilibrium investigation looks at the impacts of strategy activity just for each great in…
Q: (Note: Rounding your answer to the nearest tenth if you have decimal points) When you click the…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: A steel company is trying to decide between two industrial type cranes. Crane A and Crane B are…
A: In the present worth method, we find the present values of all the cash flows.
Q: The largest component of GDP is government purchases of goods and services. net exports of goods and…
A: GDP stands for gross domestic product which is calculated by summing up all the final values of…
Q: The elasticity of demand for home computer is -2.5, the elasticity of demand for business computers…
A: Demand elasticity and inelasticity refer to how much demand changes in response to changes in…
Q: how and why the expensive sustainable product has durability that requires lower maintenance cost,…
A: It refers to economic development in which economic resources are used in a way that does not…
Q: In 2019, X Company sold 5,250 units of its only product. Total revenue was $1,345,575, total…
A: Total Revenue is the total amount earned by the seller after selling the goods and services or we…
Q: dmania Pricing High Low Capturesque Pricing High Low 8,8 13,4 4, 13 7,7 mple, the lower-left cell…
A: Prisoner's Dilemma: Prisoner's Dilemma is an instance in game theory where 2 arobbers, questioned on…
Q: Explain how each of the factors would or would not affect the price elasticity of demand for a good…
A: Price elasticity of demand measures how much a product's consumption changes in response to price…
Q: 1. What measures can the poorer countries take to accelerate their growth to bring their standards…
A: Poor countries are poor since they don't bring anything to the table for the worldwide market.…
Q: What is Cost of Living Adjustments. Why do we need to consider
A: In economics matters, inflation is a general expansion in the costs of labor and products in an…
Q: Firm would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers if the wage rate…
A: Given the number of workers in firm A = 20000 Wage rate in firm A = $12 At a wage rate $15, hire…
Q: Variable demand is a challenge to service providers since services are perishable. With the…
A: Demand: It refers to the goods and services that have been demanded by the people. The increase in…
Q: Answer the next four questions after completing the cost table below: Quantity TC MC AFC AVC ATC 0 1…
A: The measure that depicts expenses incurred by business for carrying out day to day expenses is known…
Q: 1a. Describe a personal experience of when you purchased a product or service whereby you feel you…
A: We can consider an example: Suppose that we are trying to get a flat on rent at a particular…
Q: Q1. Suppose MPC is 0.8. If government purchases increases by $10a and cuts taxes by $508, how much…
A: Government expenditure Multiplier : ∆Y = 11 - MPC ∆GIt means that if the government change its…
Q: Why is the scientific revolution an insufficient explanation for the Industrial Revolution? The…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Look at the attached table. A. What are the Nash equilibrium to this game (if there are any)? B.…
A: Nash Equilibrium A player can achieve the desired outcome by continuing to their initial strategy,…
Q: Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of…
A: Equivalent present worth - it represent the amount today is worth more than that exact amount in…
Q: Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, identify…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-part for…
Q: Consider the standard IS-LM model from On a graph, show how output, the real interest rate, and…
A: The IS-LM model shows how aggregate markets for real goods and financial markets interact to balance…
Q: Using the start year (start year 2004) and end year (End year 2014) plot the US Dollar to Euro…
A: Exchange Rate The value of one country's currency in relation to the currencies of other countries…
Q: Duke Construction just purchased a new track hoe attachment costing $12,500. The CFO, John, expects…
A: The cost of the new track hoe attachment = $12500 Salvage value = $4000 Maintenance cost first year…
Q: If the consumer's income increases: O a. the budget constraint shifts out and its slope does not…
A: Note: we as full-time experts are not allowed to provide handwritten solutions. You must have seen…
Q: the central bank requies private banks to hold $8.00 of reserves for every $100 in deposits then the…
A: Required reserves ratio is the reserves banks must hold.
Q: a. Nominal GDP for all the years
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: Assuming that policy makers determine that a 500 billion increase in AD is needed to stabalize the…
A: There is a need to increase the AD by 500 billion to stabilize the economy. => change in AD =…
Q: Which situation best illustrates the effects of inflation?
A: Introduction Inflation Inflation refers to the general rise in the price level of goods and…
Q: Two companies, Klaren Electronics, a monopoly, and the Yarn Barn, a perfectly competitive firm, are…
A: Monopoly Market: The monopoly market is the market where a single seller or firm dominates the…
Q: 1. Suppose the production function for sea waters during a particular period is represented by…
A: Q = F(K,L) = 6000 K2 L2 - 1000 L3This is a given production function which explains the relationship…
Q: A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. At…
A: Answer: (1). According to the above figure, the consumer consumes 10 units of good X at point A.…
Q: Can a firm earn an economic loss and an accounting profit at the same time?
A: The measure that depicts distribution of income to owner in a profitable process of production in…
Q: 2) Leyla has the utility function U(x₁,x₂) = 4x₁²x₂³. (x₁: nuts, x₂: berries). a) If Leyla has an…
A: In this question:- The utility function Ux1,x2=4x12x23 where x1 is nuts and x2 is berries Clearly in…
Q: Self-Service Technologies (SSTs) have led to a reduction of and in some instances a complete…
A: The study concentrates on reliable and applicable ways to manage SST which means self service…
Q: suppose a firm has the following demand and cost functions A. Calculate the profit function B. Find…
A: Profit is the difference between total revenue and total cost
Q: DRAW A GRAPH. WITHOUT GRAPH THUMBS DOWN! Suppose the markup of goods prices over marginal cost is 2%…
A: The markup of goods prices over marginal cost: m = 2% or .02 The wage-setting equation: W=P(1-u)…
Q: All parts of this question pertain to the demand-supply graph below, showing the ) and supply (S)…
A: Price ceiling is the maximum price which can be charged by the firm. Or firm can not charge price…
Q: Suppose the cost function of a product is given as C=3q-0.001q³. If the cost is increasing at a rate…
A: Cost function: C = 3q - 0.001q3 Differentiate C w.r.t q ΔC / Δq = 3 - 0.003q2 It is given that cost…
Q: The elasticity of demand for home computers is -2.5, the elasticity of demand for business computers…
A: The degree to which demand responds to a change in another economic variable, such as price, income…
Q: The elasticity of demand for home computers is -2.5, the elasticity of demand for business computers…
A: A deadweight loss is a cost to society incurred as a result of market inefficiency, which occurs…
Q: If the fictitious country of Islandia puts all of its production resources into fish, it can produce…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Step by step
Solved in 2 steps
- Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profitThe table shows some cost data for Frank's Fortune Cookies which operates in a perfectly competitive market. At a market price of $42.83 a batch, what quantity does Frank's produce and what is the firm's economic profit in the short run? When the market price is $42.83 a batch, Frank produces batches of cookies. When Frank produces 6 batches of cookies, Frank's economic profit is $ Total Average Average product (batches fixed cost variable Average cost total cost Marginal cost per day) (dollars per batch) 1 77.00 45.00 122.00 31.00 2 38.50 38.00 76.50 23.01 3 25.67 33.00 58.67 20.99 4 19.25 30.00 49.25 26.00 5 15.40 29.20 44.60 33.98 6 12.83 30.00 42.83 51.02 7 11.00 33.00 44.00 77.04 8 9.63 38.50 48.13Could you explain what is the long run and short run of a firm in a market
- Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal toBasti’s Coffee average variable cost. Using two correctly labeled graphs show the coffee market side by side with Basti’s Coffee. Show the long run adjustments in eachof the following:price and quantity in the coffee market ii. price and quantity for Basti’s CoffeeFind the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.Graph represents the cost structure of an individual firm in a perfectly competitive market. If the price decreases to $25, 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.
- Graphically depict a purely competitive firm in the short-run. You can have the firm making a profit or loss in the short-run. Brief explanation and graphs required.Price Average total cost AVC Demand Marginal cost Marginal revenue Q Quantity Discuss the firm plotted on the figure. What type of firm do you see?is the firm operating at the optimal point of production? is the firm making a proht? s the firm operating in the short or in the long run?What is the short run supply curve of a perfect competitive firm. Expalin using illustrations
- End of Chapter 3.2 Question Help Assume the market price is $20. 48- MC The graph shows a firm in a perfectly competitive market operating at a loss. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. 44- 40- 1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 36- ATC 2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 32- 28- 3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area. AVC 24- Carefully follow the instructions above, and only draw the required objects. In order to more easily and accurately label the objects drawn in your graph, 20- use 4-directional arrow tool to reposition overlapping labels, as necessary. sure 16- 12- 8- 4- Quantity Click the graph, choose a tool in the palette and follow the instructions to create your graph. AIl narts showing Clear All…Describe how we can identify a competitive firm’s short-run supply curve.Help Save & Exit Submit The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) 15 Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $1 20 2.00 1.25 25 2.45 1.49 30 3.55 4.00 1.83 35 2.14 40 5.50 6.00 8.50 2.56 45 2.94 50 3.5 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? 24 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? p..........: d.…
