A seller using a single-price strategy has equated marginal revenue to zero. The firm has: Select one: 0 a. maximized revenue. O b. minimized cost. C. minimized profit. O d. maximized profit.
Q: Suppose that Russia decided to increase interest rates by %2. Considering the inflation and…
A: Thе rеal еxchangе ratе (RER) is influеncеd by thе nominal еxchangе ratе, inflation diffеrеntials,…
Q: 1) Assume Turkish lira (TL) is expected to depreciate by 10% over the next year against US dollar.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: TRUE - OR - FALSE Using fiscal policy to increase aggregate demand may have undesirable inflationary…
A: Fiscal policy refers to the government's use of its spending, taxation, and borrowing policies to…
Q: Create a diagram with axes representing the quantities of XA and XB. Plot the original and new…
A: Substitution effect measures the change in the quantity of the commodity when the price of the…
Q: Consider the production function Y=√K√N, where Y is output, K is capital, and N is the number of…
A: Production function: where Y is output, K is output, and N is the number of workers (labor).The…
Q: Econoline Company produces only two goods and they operate with limited resources. The production…
A: The Production Possibility Frontier is a graphical representation that shows the maximum potential…
Q: Jacob receives an allowance of $8 per week. He spends all his allowance on ice cream cones, $0.50…
A: A budget line depicts the combination of two goods that a consumer can afford, given the prices of…
Q: You are in the business school, so here is a business problem. You can import and export goods from…
A: Purchasing Power Parity (PPP) is an economic theory and exchange rate regime that relates the…
Q: The next series of questions uses the following table. The table contains 5 columns: Quantity Q,…
A: Firm's seek to maximise profits over the short and long terms by utilising the most efficient…
Q: The following data relate to the nominal and real gross national product (GNP) levels for a…
A: The gross national product includes the economic output produced within and outside of a country. It…
Q: Question 6 Listen Consider the market for pilots. What is likely to happen to the equilibrium wage…
A: A demand curve shows the relationship between the price of a good and the services and the demand…
Q: With the aid of diagrams, explain the substitution and income effects of a price change. Distinguish…
A: Substitution Effect:Substitution good definition - substitution goods are those good use can be use…
Q: The 2010 Deep Water Horizon oil spill in the Gulf of Mexico caused the tourism industry to lose $2…
A: Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and…
Q: Emelia inherits a collection of 100 Michael Jackson’s CDs (good XA) and 50 Madonna’s CDs (good XB).…
A: The price effect is the change in quantity demanded of a good due to the change in its price. If the…
Q: In the above figure, economies of scale are present up to an output level of 13,000 pounds of…
A: Economies of scale refers to the cost advantage to a firm which arises out of large scale…
Q: Based on the best available econometric estimates, the market elasticity of demand for your firm's…
A: The elasticity of demand is a concept in economics that describes the degree of change in demand due…
Q: The Taylor Rule and inflation Suppose the initial inflation rate and inflation target are both 2%,…
A: Inflation is the condition of an increase in a general price level of the economy. To control…
Q: A 50-kilowatt gas turbine has an investment cost of $43,000. It costs another $12,000 for shipping,…
A: Annual cost means all the money a company or person spends in one year. These variable fixed and…
Q: 1. What goods and services should be produced to meet consumers' needs? In what quan- tity? When…
A: 1. What goods and services should be produced?Step 1: Statistical surveyingRecognize shopper needs…
Q: Based on this model, the budjet deficit leads to Which of the following arguments might a supporter…
A: This can be defined as a concept that shows from the available fixed resources to the consumer how…
Q: Refer to the diagrams. The numbers in parentheses after the AD₁, AD2, and AD3 labels indicate the…
A: Money supply and AD have a positive relationship, When money supply is increased, aggregate demand…
Q: The market labor supply curve is typically: perfectly inelastic. downward sloping. upward…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: Suppose that every driver faces a 3% probability of an automobile accident every year. An accident…
A: If the cost of the insurance is equivalent to the predict payments the insurance company will be…
Q: A federal budget surplus occurs when government expenditures exceed tax revenues. O True O False
A: Federal Reserve:In macroeconomics, the Federal Reserve is the central bank (CB) of the United States…
Q: Suppose the European Union (EU) was investigated and proposed a merger between two of the largest…
A: There are a few requirements that must be met while dealing with any merging condition. It is…
Q: Carissa buys a pair of shoes that was priced $600. There is a 9% sales tax in her state.…
A: In the given question:Price of pair of shoes is $600Sales tax in her state is 9%Discount is 35%We…
Q: Create a graph that contains the Demand and Supply Curves. The Equilibrium of the graph would be the…
A: The link between the amount of a product provided and its price, while maintaining other variables…
Q: In recent years, there has been a growing trend towards healthier eating, and this has led to…
A: Demand refers to the quantity of a commodity that the consumer wants to buy at different prices. On…
Q: The two alternatives shown are under consideration for improving security at a county jail in Travis…
A: The benefit-cost ratio or BCR is a sign which reflects the connection between the relative costs and…
Q: Suppose that after World War II, the United States and France agree to peg their currencies to each…
A: The Bretton Woods system was designed to foster global monetary cooperation as well as stability in…
Q: Price (dollars) 30 27 24 21 18 15 12 9 3 units. O 5 units. O 4 units. Quantity demanded 6 units. 0 1…
A: Marginal costs are the additional costs incurred when an additional unit is produced. MC is given…
Q: Increasing government purchases of goods and services would have a bigger multiplier effect on real…
A: Marginal Propensity to Consume (MPC):The MPC is how much of each dollar we expect an individual or…
Q: EMERGENCY! Production just informed management that one of its five glycol squeezers has been…
A: The value of a business's revenues less its variable costs, stated as a percentage, is its…
Q: x Economists m
A: FALSEEvidence for demand-side explanation:Dramatic drop in spending: Consumer spending, business…
Q: Be fast Suppose there are three (3) consumers in a market for bottles of perfume; Mutumbu, Jasanu…
A: Market demand basically refers to the total quantity of a good or service that consumers in a…
Q: QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly…
A: Business economics is the study of how organizations make decisions and allocate resources in the…
Q: According to Bernanke's policy guide below, Bernanke's 1/4 point reduction in policy guide:…
A: This concept can be defined as a tool that helps in measuring the total amount of production of…
Q: Please give me answer with detail explanation
A: The question is asking us to determine which change in the production of Good Y involves the largest…
Q: 5. Welfare effects of a tariff in a small country Suppose Kenya is open to free trade in the world…
A: Trade is an activity where the exchange of goods and services takes place between the seller and the…
Q: Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each…
A: When resources are limited, allocative efficiency describes the best way to divide up existing…
Q: This guy is the senator mainly responsible for which of the following anti-trust acts? O Sherman…
A: The Sherman Anti-Trust Act was the key legislation aimed at preventing anti-competitive practices…
Q: Assume an economy with no foreign sector, a marginal propensity to save of mps = 0.1, and a marginal…
A: The fiscal multiplier is a concept in economics that measures the change in national income or…
Q: (6) When are the most people infected? In the long run, how many individuals are there in each of…
A: The SIR model is a simple mathematical model that describes the dynamics of infectious diseases.…
Q: If the price level is 100 for 2019 and the price level is 108.5 in 2020, a nominal GDP in 2020 of…
A: Nominal GDP : Nominal Gross Domestic Product is the total market value of all goods and services…
Q: Use the payoff matrix below to answer the next two questions. 30. a. b. C. d. Topco does not…
A: In economics, a game theory is a situation in which each player chooses a strategy by knowing the…
Q: Current Account (CA) = Net Factor Payments (NFP) - Net Exports (NX). Investment (I) - Saving (S). -…
A: The current account balance is part of country's financial inflow and outflow record. The current…
Q: The following graph represents the money market for some hypothetical economy. This economy is…
A: Government securities are refers to the financial instruments issued by the government to borrow…
Q: In order to hire additional laborers, a monopsony must A. do nothing. B. advertise for the labor.…
A: A monopsony market is a market structure characterized by a single buyer facing many sellers. This…
Q: Supply-side personal income tax cuts are expected to work by increasing work incentives. Which of…
A: The supply-side policies focused on raising the productivity and the efficiency of the economy in…
Q: 2. A particular country had consumption equal to 675, residential investment was 158, nonresidential…
A: Consumption = 675Residential investment = 158Non-residential investment = 344Change in business…
A seller using a single-price strategy has equated marginal revenue to zero. The firm has: Select one:
0 a. maximized revenue.
O b. minimized cost.
C. minimized profit.
O d. maximized profit.
Note:-
Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.
Answer completely and accurate answer.
Rest assured, you will receive an upvote if the answer is accurate.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- A firm in a monopolistically competitive industry may try to differentiate itself by a) advertising. Ob) offering a guarantee. Oc) improving quality. d) locating in a convenient area. O e) all of the above. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Choose the letter/s of the correct answer/s. How are you going to maximize a profit if the price is given as 3 – 25D? A. Differentiate the price, then multiply the demand and subtract the total costs. Set equal to 0.B. Use the profit formula, then differentiate the total costs. Set equal to 0.C. Subtract the total costs from total revenue then differentiate. Set equal to 0.D. Differentiate the total price then subtract the total costs. Set it equal to 0.If advertising makes consumers more aware ofalternative products, it could _________ theelasticity of demand and _________ the markup ofprice over marginal cost.a. increase; increaseb. increase; decrease
- a. Use the information in this table tocalculate total revenue, marginal revenue, and marginal costs. Indicate the profit-maximizing level ofoutput. What market structure is this firm operating in? What would change if the structure were monopolistic competition? OUTPUT PRICE (GH¢) TOTAL COST (GH¢) 1 5 10 2 5 12 3 5 15 4 5 19 5 5 24 6 5 30 7 5 45 b. Under what circumstances would a large size provide an advantage to a firm? How could it serve as a barrier to entry? c. You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of GH¢3. If you charge different prices, the one charging the higher price loses GH¢5 and the one charging the lower price makes GH¢5.i. Find the equilibrium when there are no repeated transactions.ii. Now suppose there are repeated transactions. How would that change the results?Instructions: Answer ALL Questions. Include referencing where additional sourceshave been used. APA format is recommendedQuestion 1a. How is monopolistic competition like monopoly, perfect competition andoligopoly? b. Give two examples of price discrimination. In each case, explain why themonopolist chooses to follow this business strategy c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm? Question 2a. Define economies of scale and explain why they might arise. Definediseconomies of scale and explain why they might arise.b. Explain the relationship between total product, marginal product, and averageproduct. c. How does fixed cost affect marginal cost? Why is this relationship important?Question 3a. Is it possible for total utility to increase while marginal utility diminishes?Explain. b. Mary has two dinner options available: eating a home cooked meal for $150 permeal, or at a restaurant for $260 per…Required information Below is a graphical illustration of a typical firm operating in a monopolistically competitive industry. P5 PT 01 Multiple Choice 0203 Refer to the graph above to answer this question. What area graphically A loss of P4P5FJ. A loss of Q₁FJQ3- ATC A profit of P4P5FJ. a profit-maximizing firm's total profits or loss?
- Solve for Question (C) How to Maximize RevenueYou own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.This profit-maximizing/ loss minimizing firm is ? Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
- 2. XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 450 boxes (unit) per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best decision that minimizes the total annual inventory cost is? a. 185 units, Total cost = 30,649 b. None is correct c. 450 units, Total cost = 23,500 O d. 500 units, Total cost = 22,583 e. 200 units, Total cost = 27,240PRICE (Dollars per engine) 100 90 80 70 60 40 30 & 2 20 10 MO D 0 10 ATC MR Demand 20 30 40 50 60 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium 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 minimumneed d and e rest part are solved answer is here Solution:- Given Monthly demand function: Q=300-4P .... (1) Cost function: TC=15Q+1000 ..... (2) Part a Revenue = Price * quantity Q=300-4P⇒4P=300-Q⇒P=75-0.25Q So R=PQR=75-0.25QQR=75Q-0.25Q2 ... (3) To maximize revenue, differentiate the equation 3 with respect to Q dRdQ=75-0.5Q Put dRdQ=075-0.5Q=0⇒0.5Q=75⇒Q=150 Second-order condition for revenue maximization: d2RdQ2=-0.5<0 Revenue is maximization quantity is 150 From equation 3 R=75×150-0.25×1502R=5625 The maximum revenue is $5625 part b Differentiate equation 1 with respect to Q dQdP=-4 Price elasticity is calculated as e=dQdP×PQe=-4×75-0.25×150150e=-4×0.25e=-1 Price elasticity at revenue-maximizing point is -1 part c Total cost of producing 150 units: TC=15×150+1000TC=3250 Profit at revenue-maximizing level of output: Profit = revenue - costProfit =5625-3250Profit =2375