Q: O O The firm should hire 50 workers and pay a wage rate of $14.00. The firm should hire 50 workers…
A: Firm should hire the workers till MRP = MRC. In the above diagram, MRP = MRC is at 50 quantity of…
Q: Consider two goods, X and Y. If the price of Y increases and, as a consequence, the demand curve for…
A: Substitute goods: If two goods are used for the same purpose by the consumers. Complementary goods:…
Q: The cost function for a firm is given by TC-4,000+ 0.1Q+0.0102. Marginal costs are given by MC -0.1…
A: Total cost is the cost of producing all the quantities. Marginal cost is the cost of producing an…
Q: The target inflation rate is 2 percent a year and the actual inflation rate is 8 percent a year.…
A: Taylor rule is a macroeconomic model that is used by central banks to conduct its monetary policy.…
Q: A favorable supply shock occurs when: unions push wages up an oil cartel breaks up and oil prices…
A: A favorable supply shock is a sudden increase in supply that causes a rightward shift of the…
Q: 4. If Chesterfield can price discriminate, what will be the quantity sold and the price that…
A: Price discrimination is the practise where producers charge different prices to different consumers…
Q: When marginal tax rates are too high, we can raise tax revenues by lowering the tax rate. This is…
A: Introduction The marginal tax rate is in other words the progressive rate of taxation. As income…
Q: Let (inverse) demand be Pb = 103 - 6 Qb and (inverse) supply be Pv = 34 + 3 Qv. Consider the shift…
A: Given information: Pb = 103 - 6Qb ------------> demand equation Pv = 34 + 3Qv ------------>…
Q: Consider a simultaneous game where player A has a dominant strategy and player B has two strategies…
A: Dominant strategy is the strategy that yields highest payoff and the strategy doesn't change with…
Q: Using Keynesian cross model show how a recession and the effect of the increase of government…
A: The concepts presented in the General Theory's first four chapters are summarised in the Keynesian…
Q: If the Federal Reserve Bank is concerned about high inflation, they should ____________ government…
A: Inflation is the increase in the general price level in the economy. The central bank of a nation…
Q: Question 2 Refer to the information provided in Figure 23.9 below to answer the question(s) that…
A: Investment affects the aggregate demand in the economy. The rise in the investment causes rise in…
Q: Which of the following is necessarily true at the point of the optimal consumption bundle? OA) The…
A: Utility shows the satisfaction derived from the consumption of goods. Marginal utility is the…
Q: 7. Let (inverse) demand be Pb = 113 - 4 Qb and (inverse) supply be Pv = 27. What quantity are…
A: Supply function: Supply function shows the minimum price at which the sellers are willing to sell a…
Q: If real GDP grows at 3% and the number of workers grows at 0.5%, then productivity (that is, output…
A: A brief introduction to GDP: Gross Domestic Product (GDP) refers to the sum of values of all…
Q: 4. What is the meaning of the business negotiation quotation?
A: In business and economics, the term negotiation is used to define the discussion between two or more…
Q: Question 3 A firm has the following cost structure: Output Total Cost($) 1 30 2 32 3 36 4 42 *Don't…
A: Under the monopolistically competitive market the profits of the firms are maximized when the…
Q: domestically. none of these consumption trade can enable trading partners to consume more than they…
A: An area or nation that another area or nation purchases goods from or sells things to is referred to…
Q: What is prisoners dilemma? and how it works? Explain in detail
A: The prisoner's dilemma is a decision-analysis conundrum when two people acting in their own…
Q: Only typed answer Describe the concept of Real Gross Domestic Product. Why is Real GDP a better…
A: Nominal GDP is the value of goods and services produced within the boundaries of a country without…
Q: Discuss two ideas on how environmental challenges can create business opportunities. use your words
A: We are in the phase of a constantly changing environment. The population in the world is rising at a…
Q: 37) If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real…
A: In economics, the nominal interest rate or nominal rate of interest is either of two distinct…
Q: $6 $4 $2 40 a. MR 50 Quantity 80 MC = AC D 100 earns profits = A monopoly firm produces QM = charges…
A: Under a monopoly market, the firm maximizes its profit when the marginal revenue is equal to the…
Q: Households have utility u(C,D,I) over consumption C education D and investment I. The house- hold…
A: Utility maximization in economics is related to individuals' utility maximation choices. Individuals…
Q: Ahlookalike Company is examining its operating costs to determine if their company is operating…
A: A firm operating incur various costs that are both explicit and implicit. Explicit costs refer to…
Q: According to the Taylor rule, the Fed reacts to an increase in inflation by thus stabilizing…
A: Taylor rule is mainly a rule that prescribes the higher federal fund rate when inflation is above…
Q: When you graph the Phillips curve, what goes on the y-axis? Change in inflation Rate of inflation…
A: A.W Phillips has popularized the concept of Phillips curve. This curve shows that there is actually…
Q: Suppose that the perfectly competitive market for milk is made up of identical firms with long-run…
A: A perfectly competitive firm produces at P = MC = AC in the long run. TC = 5Q3 - 30Q2 + 50Q Divide…
Q: A fiscal policy proposes cuts in tax rates on businesses in order to to stimulate investment and…
A: Fiscal policy refers to the one that is implemented by the government with the aim of stabilizing…
Q: Supply Equation for Good A: Calculate the following: Quantity of Good A supplied Elasticity of…
A: Elasticity measures the change in quantity due to change in price. The elasticity is calculated as…
Q: In the tragedy of the commons model when an additional fisherman goes fishing he: A) Reduces the…
A: Tragedy of Commons: To understand the concept of tragedy of commons, it is essential to know what…
Q: Question 7 The production function is f(x,x)=x¹²₁x¹2₂ a. In the short run the amount of factor 2…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: 10. (ch5) For Sara, ramen noodles are a normal good, however Sean considers ramen noodles to be…
A: Price Effect: Due to a change in the price of a good, a consumer's consumption is affected in the…
Q: Question 31 Which of the following statements about oligopoly is not correct? OA. there is no single…
A: In case of Oligopoly market structure there are few firm that control the entire market. The firms…
Q: What we call “short-run output,” denoted by Ỹ, is measured in dollars. True False
A: Variable short-run output is studied in the theory of economic fluctuation. It is denoted by Ỹ. If…
Q: The version of Okun's law discussed in class implies that with no change in unemployment, real GDP…
A: Okun law states the relationship between the unemployment rate and GDP. According to Okun law, a one…
Q: Which of the following is a component of the structure of the short-run model? MP curve IS curve…
A: The IS Curve shows potential interest and income ratios along which the market for products is in…
Q: High tax rates on interest and profits are disincentives.…
A: The marginal tax rate measures the amount of tax paid on additional income earned. According to…
Q: Panama uses the USD as their official currency since 1903 because their own peso was highly…
A: Controlling an inflation is necessary for any country .Inflation is considered bad because it…
Q: Suppose the long-run production function for a competitive firm is f(x1,x2)= min {3x1,2x2}. The cost…
A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…
Q: 2. In the USA 1 unit of labor can produce 50 cars while in Canada 1 unit of labor can produce 5…
A: Comparative Advantage: In the trade theory the country which have comparative advantage in producing…
Q: Discuss the drawbacks of primary-sector-intensive outward-looking trade policies. How did the…
A: The Prebisch-Singer hypothesis, sometimes known as the Prebisch-Singer thesis, contends that the…
Q: Figure 7.3.1 The figure shows the market for shirts in Canada, where D is the domestic demand curve…
A: A country will import if, at the world price, the domestic demand is greater than the domestic…
Q: Only typed answer A monopoly has an inverse demand function given by p = 480 – 4Q and a constant…
A: Given that, A monopoly has an inverse demand function given by p = 480 – 4Q A constant marginal…
Q: sed the price of petroleum, causing the unit cost per output in the economy to increase. ***If you…
A:
Q: Use this information for questions 19-22. Consider the Acid Rain Game with new payoffs below. Total…
A: Grim trigger is a trigger strategy for a recurrent game in game theory. A player utilising grim…
Q: Assume that prior to the Fall 2022 outbreak of respiratory illnesses, Covid, influenza, and…
A: Perfectly competitive firms are those that sell in a market with numerous buyers and sellers. The…
Q: 7. Let (inverse) demand be Pb = 105 - 1 Qb and (inverse) supply be Pv = 16 + 3 Qv. How much consumer…
A: Here, Demand function is given as: Pb=105-1Qb And, supply function is given as: Pv=16+3Qv To…
Q: Full Screen Fill in the blanks Accessibility The following table shows the monthly production of…
A: Here we would be calculating that 1 unit of labour produces how much output Now as the total labour…
Topic: Market Structure
1.) Why
2.) Why is perfect competition is desirable ?
Step by step
Solved in 3 steps
- 1.(a) Explain with the help of a graph how a perfectly competitive firm determines its profit-maximizing quantity of output. (b) Explain with the help of a graph the effect of a decrease in marginalcost on the profit-maximizing quantity of output of a perfectly competitive firm.3) List and describe the market structures.1. Explain how the long run differs from the short run in pure competition. 2. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Explain.
- 1. Identify a market that resembles some of the key characteristics of a perfectly competitive market and discuss each of these characteristics of the market in detail 2. Has any particular firm in this market found a way to differentiate or distinguish itself from its competitors? If so, what did the firm do? If not, what prevents the firm from differentiating itself?In this week’s discussion we focus on market competition and the power of firms to set prices. (a) Along with your textbook reading, review the videos, blog, and articles on market competition. Then respond to the following questions: If all the firms in an industry are charging the same price, is it fair to say that they are engaged in price collusion? To what extent might this be a plausible explanation? Are there any other possible explanations? What type of market structure do you think is more conducive to firms engaging in price-fixing? Why do you think the price-fixing situation in the case described went on for so long? (one paragraph) Click the link to review a recent price-fixing case on bread. (b) In your town or city try to find a local business that appears to enjoy some degree of monopoly power (it does not have to be a pure monopoly: one unique product and one seller). Briefly describe the nature of this business and explain some of the factors that give it monopoly…In this week’s discussion we focus on market competition and the power of firms to set prices. (a) Along with your textbook reading, review the videos, blog, and articles on market competition. Then respond to the following questions: If all the firms in an industry are charging the same price, is it fair to say that they are engaged in price collusion? To what extent might this be a plausible explanation? Are there any other possible explanations? What type of market structure do you think is more conducive to firms engaging in price-fixing? Why do you think the price-fixing situation in the case described went on for so long? (one paragraph) 7 Canadian companies committed indictable offences in bread-price fixing scandal: Competition Bureau | Globalnews.ca https://globalnews.ca/video/rd/1150756931838/?jwsource=cl
- Question 1)a) Which of the following is a common criticism of advertising?O. It makes market entry easy.O. It createsa demonstration effect.O. It stirs competition among firms.O. It promotes freedom of expression. b) Why do perfectly competitive firms avoid using advertising?O. They can sell all they want at the market price without ads.O. They usually don't have enough revenue to advertise.O. They are afraid the ads will lower the price of their products.O. They usually have a limited distribution network, making advertising unnecessary.1.Define the perfect competition market structure. 2.what are the characteristics of that market? 3.How many firms are in that market.(a few, one, many etc)Question: Perfect competition results in an efficient allocation of resources. True False
- 4) How does a competitive firm determine its profit-maximizing level of output? Explain When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?32) Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmerʹs marginal revenue to ________ and their profit-maximizing level of output to ________.A) increase; increase B) increase; decreaseC) decrease; increase D) decrease; decreaseAssuming that the market for cigarettes is in perfect competition, what does allocative and productive efficiency imply in this case? What does it not imply?
