Does a competitive firm’s price equal its marginal cost in the short run?

Q: The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of...

A: Economic Order Quantity, also known as Economic Purchase Quantity, is the order quantity that minimi...

Q: A government official announces a new policy. The country wishes to eliminate its trade deficit, but...

A: An administration official declares another strategy. The goal is to take out its import/export imba...

Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due...

A: Borrow Amount = 2000 for 6 years at 8% Loan Renews with additional amount of 2000 for 2 more years a...

Q: The equation for purchasing power parity is – the domestic price should equal the exchange rate mult...

A: Given, 1 Euro = 1.145 dollars If purchasing power parity holds, Domestic price=exchange rate×foreign...

Q: true or false The rational and profit maximizing firm will choose to operate in Stage 1 or Stage 2 ...

A: Total product is defined as the total amount of output produced by employing given amount of input. ...

Q: 2. There are six potential consumers of computer games, each willing to buy only one game. Consumer ...

A: "Consumer surplus refers to the difference between the price a consumer is willing to pay for a comm...

Q: When a factor market has only one demander of labor, the market is labeled a (n) (A) Natural monopol...

A: In economics, a monopsony is a market structure in which a single buyer substantially controls the m...

Q: Problem 1. Explain in detail what effect a Fed sale of bonds will have on: (1) the LM curve; (2) the...

A: The LM curve shows income (GDP) and interest rates (i) at which money supply (MS) matches money (liq...

Q: ind the equation for elasticity. ind the elasticity at the given price, stating whether the demand i...

A: Given, D(p) = √349-p

Q: balances of fiat money worth y goods. 1+ Vi+1 a. Use the equality of supply and demand in the money ...

A: Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat mone...

Q: The first table displays Congressional Budget Office forecasts made in January 2015 of future federa...

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

Q: When would a seller possibly decide to exit the industry over the long run? What should product pric...

A: The time period where all of the factors of production along with the costs incurred are variable in...

Q: Covid 19 pandemic is an example for Select an answer and submit. For keyboard navigation, use the up...

A: Aggregate demand and supply shocks are unexpected change in the economy will shift either the aggreg...

Q: BDO Savings Account FEATURES Minimum Initial Deposit Php 2,000.00 Minimum MADB Requirement (1) Php 2...

A: The correct answer is given in the second step.

Q: Write down the importance of capital in three brief paragraphs?

A:

Q: Assume 10% interest. A proposed project has the following costs and benefits: Year Costs Benefits $3...

A: It takes time for a project's initial cost to equal the discounted value of expected cash flows or t...

Q: How can we say that economics is considered as social science or how economics is defined as social ...

A:

Q: uppose that a firm is producing in the short run with output given by: = 58L-L2 he firm hires labor ...

A: Optimal Labor is determined in light of similar standards as anticipated labor aside from it is dete...

Q: What are the characteristics of a steady state in the Solow growth​ model?

A: The exogenous growth model, sometimes known as the Solow–Swan model, is a long-run economic growth m...

Q: 3. A monopolist sells in two markets. The inverse demand curve in market 1 is Pi = 200 – 91. The inv...

A: Demand in market 1 : p1=200-q1 Demand in market 2 : p2=300-q2 Total Cost : (q1+q2)2=q12+q22+2q1q2   ...

Q: Define and explain what is unemployment?

A: People who are voluntary unemployed are not considered in unemployment rate. People who are not will...

Q: Refer to the graph shown. Within which section(s) of the production function is marginal product dec...

A: Here, the given graph shows the production function of a firm to explain the different phases of the...

Q: Explain the impact of Minimum wage laws on the labor supply, and provide statistical data for the sa...

A: The law of demand applies in labor markets thusly: A more significant payor wage-that is, a greater ...

Q: 4. At a price of $100 each, Beachside Canoe Rentals rented 11 canoes. When it increased its rental ...

A: The demand curve shows the negative relationship between the price and the quantity demanded. The de...

Q: What is the need for integrating both the main branches of economics i.e Micro economics and macro e...

A:

Q: Which of the following statements is true Select one: a. If economic profit is negative, accounting ...

A: Accounting profit is the difference between TR (total revenue) and TC(total cost). Economic profit, ...

Q: Who are Homo Economicus?

A: Rational choice theory aims to comprehend the economy by considering one person's actions and calcul...

Q: The diminishing marginal product implies that the total product is decreasing at an increasing rate

A: Here we can find that the TP first increases in an high rate after which it increases but at a slow ...

Q: Using the information in the following table on Mexico’s 1996 international transactions to answer t...

A: Balance of trade is defined as the difference between the value of exported and imported goods and s...

Q: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 + 5% of excess over $5,000...

A: A tax is a necessary fee or a type of monetary charge that is imposed by a government on a person or...

Q: What is the importance of mircro economics in pur day to day life?

A:

Q: ons: Round your answers to 2 decimal places. TC MC ATC 101,000 S 151,000 0.51 1.01 188,500 2.51 00 2...

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you ...

Q: Price 10t Supply 8 Demand 60 120 160 210 300 Quantity 27. Refer to the graph above. With an effectiv...

A: A price ceiling is a type of price control levied by the government.  It is the highest price at whi...

Q: QUESTION 3 A dealer decides to sell an antique automobile by means of an English auction with a rese...

A: 3) The expected revenue is as follows, given that they do not collude and are bid rationally,  P(ER)...

Q: A: How can explain the micro economics in this advanced age? B: Define the term production?

A: Answer for A part:

Q: Explain Keynes’s theory of investment and why it is central to his more general theory of output and...

A: Mistrust of the rationality of free-market decision making pervades the atmosphere. A book by Englis...

Q: POn the basis of quarterly sales (in $ lakhs) of a certain commodity for the years 2001-2005 the fol...

A:

Q: The sale of a company rose from $ 60,000 in the month of August to $ 69,000 in the month of Septembe...

A:

Q: Numerical simulation. Consider the following Solow growth model: Yt = 10 * /k, k++1 = kt – 0.1k; + 0...

A: Given  yt=10kt          .... (1) kt+1=kt-0.1kt+0.2yt           .... (2) k0=50 “Since you have posted...

Q: Problem 2. Consider the following Phillips Curve n = En – 0.6(u – 0.05) a) Explain the above Philips...

A: When represented or charted graphically, the Phillips curve illustrates an inverse relationship betw...

Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market dema...

A: a.Fringe firms marginal cost is:P=MC=20+5qP=20+5q5q=P-20q=P-205Now,There are five Fringe firms:q=P-2...

Q: Show the effects of the $200 tariff on the following graph. Use the black line (plus symbol) to indi...

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: 0*Y+ 100 0*Y+ 80 0*Y+ 80

A: Given that, MPS is 0.80 Autonomous consumer spending is 100, We have to calculate aggregate consumpt...

Q: We need to know the profitability of a business model: - 3 x machines (beauty machines) - Each machi...

A: In the mentioned question we have been asked the total expected income for the week.

Q: Using a production possibility frontier, an arbitrary price line that does not equate supply and dem...

A: Production Possibility Frontier is the locus of points of production combination which an economy ca...

Q: The consumer price index for a group of workers was 250 in 1994 with 1980 as the; (1) Compute the pu...

A:

Q: Al its current short-run evel of production, a irm's average variable costs equal $30 per unit, nd i...

A: Fixed cost is independent of output produced whereas variable cost varies with the level of producti...

Q: Government stability and a well-functioning financial system are examples of what? Extractive Instit...

A: Capitalism is an economic system where properties, trade and industries are controlled and owned by ...

Q: In the BOP accounts, what are the four basic components of the current account? How can information ...

A: Four basic components of current account in BOP include: Goods  Services Income and  Current transfe...

Q: Modern economic growth theory asserts that "depending up on how much human capital they have, and ho...

A: The above statement is - TRUE