In real life perfect competitive market does not exist. However there are some markets that are just near to the perfect competition. Explain this statement with example
Q: If 3 mangoes are sold for P^(75), how many mangoes can be bought for P^(150)?
A: Selling price of mangoes refers to the price that a consumers pays for purchasing the mangoes.…
Q: Suppose the government uses a balanced-budget policy, Önancing its expenditure by lump-sum taxes…
A: When the government supports its expenditures with lump sum taxes, it is said to be operating under…
Q: Consider a world with only two countries (i.e., two large open economies), the home country and the…
A: An increase in home future labor income could have several effects on the world equilibrium interest…
Q: Johnston Co is a multinational enterprise with business all over the world. The company is currently…
A: Exchange rate movement refers to the fluctuation or change in the value of one currency in relation…
Q: Covid-19 global economic pandemic has negatively affected economies as a whole at the global,…
A: The pandemic led to a reduction in economic activity, job losses, and a decline in consumer…
Q: (Figure: The Demand for Online Movies) Use Figure: The Demand for Online Movies. which If the price…
A: Total revenue is the product of price and quantity. Marginal revenue is the change in total revenue…
Q: All of the following statements are true, except: Select the correct answer below: Many countries in…
A: Introduction The pace of price growth over a specific time period is referred to as inflation.…
Q: yara is saving up for a new tesla. She has no money right now. she is going to put $6150 away in…
A: Given Yara first year saving A1=$6150 Yearly increment G =$1000 Number of years =12 Interest rate =…
Q: How does high inflation lead to a recession in the country? Explain the role of the Government and…
A: There are various ways that high inflation might trigger a recession in a nation. One of the most…
Q: 1.) Briefly define and explain how fractional reserve banking works. Both the textbook and the…
A: 1. Fractional reserve banking is a banking system in which only a fraction of bank deposits is held…
Q: What does the utility function u(x,y) = -x look like as an indifference curve (draw 3, indicating…
A: Indifference curve shows combinations of commodity that leaves the consumer equally well off. The…
Q: A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10…
A: Introduction A free trade policy prohibits a government from favoring certain imports over others or…
Q: With the opening of the new student union on the campus of UNR, three firms are contemplating…
A: A subgame perfect Nash Equilibrium are the strategies that are optimal for every subgame of the game…
Q: A large shipping company has demarcated funds for the following planned expenditures: . • €20…
A: Planned investment means the amount of investment that the firms or government are planning to…
Q: Find the value of Pand F in the cash flow diagram. Use uniform series capital recovery factor &…
A: Uniform series capital recovery factor : (P/A , i% , n ) Where ,i = interest rate , n = number of…
Q: If the MPC is .75, the government spending multiplier is
A: The government spending multiplier is the amount by which a change in government spending affects…
Q: A game may have more than one Nash equilibrium. T/F ? 2. A game has always at least one pure…
A: Nash equilibrium refers to best course of action of firm or player provided the strategies of rival…
Q: the present worth, / for the annual interest as a decimal number, and in for the number of years.)…
A: The annual worth is the net of all the profits and costs incurred over one year. Thus, we present…
Q: Given the information in the table below, what is country A's real aggregate product in B$ at…
A: The Aggregate Production Function is a concept in macroeconomics that describes the relationship…
Q: You have been tasked with developing a research report based on an economy of your choice anywhere…
A: A society's organization of the production, supply, and consumption of products and services is…
Q: Explain why the intergenerational correlation of earnings would likely be higher or lower than…
A: The intergenerational correlation of earnings refers to the extent to which the income or earnings…
Q: Two partners start a business. Each has two possible strategies, spend full time or secretly take a…
A: In game theory, a Nash equilibrium is a stable state in which no player in a game has an incentive…
Q: 1) Assume two firms with the same constant average and marginal cost, AC = MC = 12, facing the…
A: Introduction According to the economic theory of Cournot competition, competing enterprises decide…
Q: In the long-run, an increase in the money supply causes an increase in which of the following?…
A: Real Gross Domestic Product is a measure of the value of all goods and services produced in an…
Q: These are Macroeconomic questions a. Farmers in Country A grow $150 worth peanuts which are sold to…
A: To calculate the GDP of Country A and B, we can use the value of final goods approach and the…
Q: Explain the effect of a downward shift in demand on the monopolist's equilibrium, assuming that the…
A: Monopoly is a type of market structure in which there is only one seller of goods to a large number…
Q: A firm's production function is q = 2K0.5 +5L 0.5 This production function exhibits decreasing Both…
A: The production function in economics is a task that relates the output a firm can produce to…
Q: Randy Ratpack hates studying both economics and history. The more time he spends studying either…
A: An indifference curve is a graphical representation of a consumer's preferences for two goods or…
Q: Table 24-7 The table below lists the prices of chips and salsa for the year 2018, 2019, 2020. Assume…
A: Inflation rate is the rate at which the price level increases over the period of time. CPI is the…
Q: some compliance issues identified by the auditor-general of south africa and national treasury are…
A: The budget process is a critical component of financial management in municipalities in South…
Q: Suppose consumers and businesses become more optimistic about future economic conditions, causing…
A: The following graph shows the aggregate demand (AD1) and aggregate supply (AS) curves for a…
Q: During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America…
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: Microsoft is selling a one-of-a-kind software program for which they have no competitors. The demand…
A: Incase of monopoly , There exists a large no. of buyers but a single seller. The profit is…
Q: True/ False International trade can leads to a enhancement in the product available for the…
A: International trade refers to the exchange of goods and services across borders or between…
Q: How long will it take for an investment with an annual rate of return of 6% compounded annually to…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Suppose a natural monopoly with diminishing average and marginal costs. Represent graphically: a)…
A: A natural monopoly arises when the long run average cost curve falls over a sufficiently large range…
Q: Which of the following is a major factor in determining an individual's supply of savings? A:…
A: Income earned by people is either spent on consumption or kept in savings. Saving is that part of…
Q: Please show all steps to solutions. 1) what is the elasticity of demand when the price is $8?…
A: Elasticity measures the percentage change in quantity due to percentage change in price. The demand…
Q: Suppose George views leisure as a normal good. He works at a job that pays w an hour. Use a…
A: A budget constraint or line refers to an economic term that tells about the combined amount of goods…
Q: The Energy Information Administration's forecast that world crude oil demand will likely outpace…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: Consider a firm withd> 0, under all the assumptions we made in class. If W_F (1 + d) > W_M, then the…
A: The discrimination coefficient is a numerical measure of labor market discrimination that captures…
Q: Do you think your examples help as a metaphor for economic development problems
A: introduction A portion of the extra instances of complementarities in our everyday existence are:…
Q: please solve second question
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: Source:…
A: According to the Source:…
Q: We first want to understand why the issue of climate change requires government inter- vention and…
A: In this case, we have to discuss the budget constraint. Budget constraint is total available money…
Q: Dahlia gives a presentation on the Industrial Revolution and focuses on its impact on air and water…
A: Dahlia examines the effects of human activities on the natural world and how these effects can have…
Q: (a) Let ƒ : R→ R+ be a a firm's differentiable production function satisfying the usual assumptions.…
A: *Since you have posted multiple questions ,following our guidelines we will only solve the first one…
Q: How does the U.S. savings rate compare to that of another country? 2. How is the U.S. doing? 3.…
A: A nation's savings rate is the proportion of disposable income that families and individuals set…
Q: XI. S. advance in development technology that owered a developer's costs change the market supply…
A: An increase in development technology that reduced a developer's costs could cause a shift in the…
Q: The graph below represents the market for gift bags and is currently in equilibrium. Graph the…
A: Demand and supply are fundamental concepts in economics that describe how markets function. They…
In real life perfect competitive market does not exist. However there are some markets that are just near to the
Explain this statement with example.
Step by step
Solved in 2 steps
- There is equilibrium in the purely competitive market for oranges, and the optimal amount of oranges is being produced. Explain if and how the optimal amount of oranges will change if the following events occur: a) New fertilizers increase the yields of orange trees. b) Frost destroys part of the orange crop. c) Frost destroys part of the grapefruit crop. The resulting increase in the price of grapefruits raises the demand for oranges. d) People get tired of oranges.What assumptions in the perfectly competitive market can be used to explain the three conditions that satisfy general equilibrium and pareto optimality. Identify these assumptions and carefully discuss the three (3) conditions for Pareto Optimality in this case.What are the two essential characteristics of a competitive market?
- If new technology in a perfectly competitive market brings about a substantial reduction in costs of production,how will this affect the market?Perfect competition is an extremely rare type of market in the real world. This is because the conditions necessary for perfect competition are difficult to meet. Write about an example of perfect competition (or at least a market that is very close to perfect competition). Do different sellers in the market you’ve described charge different prices for their product? Does your answer support the idea that this market is perfectly competitive? Explain. Does it seem as if the example you mentioned is allocatively efficient? In other words, does the market produce enough of this good (or does it produce too much or too little)? Explain.Isabella grows pumpkins. Her average variable cost (AVC), average total cost (ATC), and marginal cost (MC) of production are illustrated in the figure to the right. Assume the market for pumpkins is perfectly competitive and that the market price is $5.00 per box. How many pumpkins should Isabella grow? Isabella should produce integer value.) thousand boxes of pumpkins. (Enter your response as an Price ($ per box) 10.00- MG ATC AVC 9.00- a 8.00- G 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00- 0 2 3 5 6. Quantity (boxes in thousands)
- Consider the perfectly competitive market for tofu. Many people use tofu as a substitute for meat. Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q, P, and in the market for tofu (in comparison to the starting point) if the price of meat is increasing.Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. 1. One thing California plum farmers will need to consider is that the cost of water is going to increase (due to water shortages). Consider the cost of water part of the farmers cost of growing plums. Please explain to this capitalist what is expected to happen in the market. Don't forget to use perfect competition…Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. a. In the short-run, what will a typical plum farm experience? Why? Don't forget to use perfect competition diagram(s) when explaining it.
- Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. b. In the long-run, what do you think will happen in the plum market? Why? Don't forget to use perfect competition diagram(s) when explaining it.If a perfectly competitive market is in long-run equilibrium, then the market is: productively efficient only. neither productively nor allocatively efficient. both productively and allocatively efficient."the economic model of perfectly competitive market is very unrealistic because it predicts that firms in a perfectly competitive market earn zero profits in the long run. However, in reality, no firm would stay in business if it earned no profits." agree or disagree? explain.
