Q: Which of the following are true about tax? Pick ALL that are correct. Deadweight loss tends to be…
A: A tax is a mandatory financial charge or levy imposed by a government on individuals, businesses, or…
Q: An IAC (industrially advanced country) had a per capita income of $44,000, while a DVC (developing…
A: Per capita income is the total income divided by country's population.It is an important economic…
Q: At a price of $1.20, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price…
A: Point elasticity of demand measures the elasticity at a point on the demand curve. Mainly it's the…
Q: Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee.…
A: Convergence: Convergence refers to the idea that poorer or less developed countries will, over time,…
Q: Determine whether each of the following statements is true or false and justify your answer. (1) The…
A: Rationalizable Action Profiles: These are strategies in a strategic game that are considered…
Q: 31. The primary concern of economists worried about the crowding out effect is the A) growing size…
A: The crowding-out effect is an economic phenomenon that occurs when increased government spending,…
Q: Exercise 3 Consider a firm with production function of the q (L, K) = L√K, where q is the quantity…
A: An isoquant is a concept used in economics to represent a graphical or mathematical relationship…
Q: In the neoclassical Supply and Demand model, what is meant by shortage? Group of answer choices…
A: Imbalances in the market reflect differences between supply and demand, leading to potential…
Q: In the following PPF, what is the opportunity cost of moving from point c to b? 12 9 5 O 3 O 4 05 1…
A: PPF or production possibility frontier means possible combination of two goods that a country can…
Q: An'auto repair shop faces the following weekly costs: rent, $500; labor, $400 per worker; parts and…
A: Total cost defines the complete expense incurred by a firm or individual in the production of goods…
Q: Price and costs (dollars per unit) 25 MC ATC X MR D 8 12 16 20 24 Quantity (units per day) 20 15 10…
A: In monopolistic competition, There exists a large number of buyers and sellers. The firm will…
Q: What is the meaning of decolonization of social work?
A: Decolonization in social work refers to a process of critically examining and dismantling the…
Q: Let us consider the cost implications of the short-run production schedule from assignment number 7,…
A: The expenses such as labor, materials, overhead, and other resources needed to produce goods or…
Q: A well-known professional football player contacts you for Travel Health insurance. He tells you he…
A: Scuba Diving: A water sport involving underwater swimming with the use of a self-contained breathing…
Q: Economic profits may result from: O a. innovation O b.risk taking O c. exploiting market…
A: Profit is the financial addition or advantage that a business or individual acknowledges when the…
Q: Suppose Yakov and Ana are playing a game in which both must simultaneously choose the action Left or…
A: A dominant strategy refers to the strategy in game theory as one where a single strategy is best for…
Q: A competitive employer will hire inputs up to the point where the Multiple Choice O marginal product…
A: Competitive market refers to a type of market at which there are many buyers and sellers dealing in…
Q: In the Mundell-Fleming model for a small open economy with flexible exchange rates, if the economy…
A: Exchange Rate: The rate at which one country's currency can be exchanged for another's. It…
Q: Vietnam’s economy is affected by the high levels of Exchange Rate Volatility. Propose measures to…
A: The volatility of the exchange rate reflects how much the value of a nation's currency varies in…
Q: Let attached table be data of goods X1 and X2, at a ratio: Where MU X1 is Marginal Utility for X1…
A: In economics, utility refers to the satisfaction or benefit that individuals derive from consuming…
Q: Explain under what kind of conditions would you expect cyclical unemployment to be rising
A: Cyclical unemployment: Cyclical unemployment occurs during economic downturns when demand for labor…
Q: Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity…
A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…
Q: 16) A significant difference between monopoly and perfect competition is that A. free entry and exit…
A: Monopoly refers to a a market situation at which there is only single sellers selling a product that…
Q: QUESTION 11 Exhibit 3-10 Price of X (dollars) 8 9 0 100 200 Quantity of X Refer to Exhibit 3-10. $20…
A: The market is at equilibrium where demand and supply curves intersect each other.
Q: Why does a purely competitive firm not charge a price above the market price? Why does it not charge…
A: Perfectly or purely copetitive markets are those markets where large number of buyers and sellers…
Q: An increase in the minimum wage causes the quantity supplied of labor to of labor. labor and thus…
A: And increase or decrease in the wage rate will affect the labor supply and demand curve.
Q: Question 6 This figure reflects the market for outdoor concerts in a public park surrounded by…
A: The externality is defined as the cost or benefit that is unrelated to the third party involved. It…
Q: find the price elasticity of demand for this restaurant’s beef burger; and b) find the…
A: Elasticity of demand measures how much the quantity demanded changes when the price of the good…
Q: Consider the graph at right showing an economy in recession. Aggregate demand is currently at AD.…
A: The concept of aggregate demand pertains to the collective desire for goods and services within an…
Q: A company has established that the relationship between the sales price for one of its products and…
A: Maxmum profit is the every firm's objective. And it is achieved when marginal revenue and marginal…
Q: The graph to the right shows the demand and cost conditions facing a price-setting firm. When output…
A: A trader's earnings or revenue is the term used to describe the financial gain they have…
Q: Exercise 5 For each of the production functions below: (1) find the marginal product of labor (i.e.,…
A: Production function : q (L ,K ) = 5L0.75K0.25Where , L : labor input K : Capital input Hi there , as…
Q: Which of the following will most likely cause a nation's currency to appreciate on the foreign…
A: The foreign exchange market determines the exchange rate price of the foreign currency. The…
Q: A bond with a face value of $6,000 pays quarterly interest of 1.5 percent each period. Thirty-four…
A: Present value is the value of investment in today's dollar.Future value is the value of investment…
Q: what is the relationship between the financial well-being of the industry and availability of…
A: Healthcare is a wide term that envelops a scope of services and practices pointed toward keeping up…
Q: QUESTION 5 Which group of individuals most likely benefits from rent controls? single parent…
A: Rent Control is a form of price ceiling where government mandates the maximum rent that a landlord…
Q: CENGAGE MINDTAP Problems & Applications (Ch 07) The cost of producing laptop computers has fallen…
A: Demand, Supply, and Consumer Surplus:The demand for a product or service is described as the…
Q: 3. The effect of negative externalities on the optimal quantity of consumption Consider the market…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: 12 We assume again the original assumptions of the Akerlof model, but now alter the information…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $725,000 now and $950,000, 8 years…
A: Perpetual equivalent annual cost (PEAC)PEAC shows the annual amount of money that would have to be…
Q: Because perfectly competitive firms are price takers, a permanent increase in the market demand does…
A: A firm operating in a perfectly competitive market finds itself among numerous small sellers. The…
Q: Use a graph of labor supply and labor demand to illustrate the impact of each of the folllwing…
A: Equilibrium in the labor market occurs at the point where labor demand curve intrsects labor supply…
Q: H G O B 50 100 150 200 250 Quantity (units) Look at Figure 4.5.3. If If quantity is 200, deadweight…
A: In economics deadweight loss is associated with the market inefficiency that arises when supply and…
Q: What term is used to describe goods that can replace each other to some extent, so that a rise in…
A: Substitute goods: 2 goods X and Y are substitutes if price of good X and demand for good Y are…
Q: Answer the following question and submit to the appropriate space on Canvas. Be careful to…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: At the market equilibrium, price is equal to $18; 70 O $14; 50 $14; 70 O $18; 50 O $12; 50 , and…
A: Market equilibrium:Market equilibrium is the point at which the quantity of a good or service…
Q: ofit is found as total revenue (TR) minus total cost (TC). With that in mind, let us now consider…
A: The expenses such as labor, materials, overhead, and other resources needed to produce goods or…
Q: Select the phrase that correctly completes the following statement. "A decrease in the expected…
A: Supply refers to the quantity of the goods or services that a seller is willing and able to sell at…
Q: Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will…
A: Comprehensive Coverage: This is an element of an auto insurance policy that provides coverage for a…
Q: What economic theories are most useful when applied to the healthcare industry and why?
A: Healthcare economics theory examines the allocation of resources and decisions-making in the…
Please prove that, in a monopoistic market, P=(MC)/(1+(1//E_(d)))
Step by step
Solved in 3 steps
- Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…Fun Water Park is considering practicing price discrimination in respect of its customers who are either members or non-members. Assume that the marginal cost (MG) for both groups of customers is constant. The Figure Q3(a) and Q3(b) shows the markets for the Fun Water Park. RM/ Cost RM/ Cost 150 100 100 80 MC 50 MC 50 ARI MR `ARI MRI 10 20 40 Quantity 10 30 50 Quantity Figure Q3(a): Members market Q3(b): Figure members market non- i) Determine the price and quantity to profit maximizing in each market. ii) Calculate the profit for both members market, and non-members market, given that MC is equal to AC.A golf club’s owner has commissioned a market study that estimates the average customer’s monthly demand curve for playing 18-hole golf game to be Q=50 – 0.5P, where Q stands for the number of 18-hole golf game, and P is the green fee. The marginal cost is given by MC=20. (1) Under two-part pricing strategy, what is the optimal amount of green fee to charge for one round of 18-hole golf game? (2) Under two-part pricing strategy, what is the optimal amount of membership due? (3) Under two-part pricing strategy, what is the size of the profit obtained from the average customer?
- There are two movie theaters in the town of Harkinsville: Modern Multiplex (Firm 1) and Galaxy (Firm 2). The demands for each firm are: Q1 = 125 – 3.5P1 + 2P2 and Q2 = 125 – 3.5P2 + 2P1, where quantities are measured in hundreds of moviegoers. Costs per customer are: $4 for Firm 1 and $3 for Firm 2. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Use commas (30,000 instead of 30000) Complete the following table. P1 P2 Q1 Q2 Profits F1 Profits F2 Firm 1 colludes, Firm 2 cheats w/ QDC 2,824 Firm 1 colludes, Firm 2 cheats w/ QBRFThere are two movie theaters in the town of Harkinsville: Modern Multiplex (Firm 1) and Galaxy (Firm 2). The demands for each firm are: Q1 = 125 – 3.5P1 + 2P2 and Q2 = 125 – 3.5P2 + 2P1, where quantities are measured in hundreds of moviegoers. Costs per customer are: $4 for Firm 1 and $3 for Firm 2. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Use commas (30,000 instead of 30000) Complete the following table. P1 P2 Q1 Q2 Profits F1 Profits F2 Duopoly competition 2,059 Collusion 2,360Exercise 4.2 "With respect to the monopoly equilibrium without price discrimination, first-degree price discrimination increases the profit of the enterprise at the expense of reducing social welfare." Do you agree with this statement? Reason your answer and represent graphically.
- In Gas Pump, South Dakota, there are two kinds of consumers, Buick owners and Dodge owners. Every Buick owner has a demand function for gasoline DB(p)=20 − 5p for p ≤ 4and DB(p) = 0 if p> 4. Every Dodge owner has a demand function DD(p)= 15 − 3p for p ≤ 5 and DD(p) = 0 for p> 5. (Quantities are measured in gallons per week and price is measured in dollars.) Suppose that Gas Pump has 150 consumers, 100 Buick owners, and 50 Dodge owners.a. If the price is $3, what is the total amount demanded by each individual Buick Owner? And by each individual Dodge owner? What is the total amount demanded by all consumers in Gas Pump at a price of 3?b. Use ink to draw the demand curve representing the total demand by Buick owners on the graph. Use ink to draw the demand curve representing total demand by Dodge owners. Use ink to draw the market demand curve for the whole town. (make some labels)c. At what prices does the market demand curve have kinks? When the price of gasoline is $1 per…In Gas Pump, South Dakota, there are two kinds of consumers, Buick owners and Dodge owners. Every Buick owner has a demand function for gasoline DB(p)=20 − 5p for p ≤ 4and DB(p) = 0 if p> 4. Every Dodge owner has a demand function DD(p)= 15 − 3p for p ≤ 5 and DD(p) = 0 for p> 5. (Quantities are measured in gallons per week and price is measured in dollars.) Suppose that Gas Pump has 150 consumers, 100 Buick owners, and 50 Dodge owners.a. If the price is $3, what is the total amount demanded by each individual Buick Owner? And by each individual Dodge owner? What is the total amount demanded by all consumers in Gas Pump at a price of 3?b. Use ink to draw the demand curve representing the total demand by Buick owners on the graph. Use ink to draw the demand curve representing total demand by Dodge owners. Use ink to draw the market demand curve for the whole town. (make some labels)c. At what prices does the market demand curve have kinks? When the price of gasoline is $1 per…In small collegetowns, it is not uncommon that the rental market is dominated by one or a handful ofproperty management companies. Suppose demand for housing is given by MWTP(Qd)=2400-4QdSupply from the monopolistic landlord can be characterized by MC(Qs)=1500+Q°1. How many units will be rented in this collegetown? At what price?
- Consider any market that has a demand curve given by: Qd = 240 - 2P. Where Qd is the total quantity demanded in the market, given in millions of units and P is the market price, calculated in monetary units. Imagine that there are 2 Cournot oligopolists operating in this market with Cmg = CVme = 15 and fixed monthly costs equal to 1,400. About this market, ask yourself: a) What is the profit of each of the oligopolists? b) Imagine that one of the companies managed to implement a process innovation capable of halving its Cmg and CVme, so that they would go from 15 to 7.5. This investment implies an additional monthly expense of $1,800. Discuss the statement: "If this situation occurs, the innovative company will not implement variable cost reduction, as the quantity supplied in the market will increase very little; prices will remain very close to what they are today and its profits will not increase"As a manager of a music venue (assume a monopoly market), you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your theater. On weekends, the inverse demand function is P = 24 − 0.0005Q; on weekdays, it is P = 20 − 0.0025Q. Each night you hire an act to play costs about $75,000 for the band, and about $5.00 per person (staff, food, drinks). Devise a pricing strategy to maximize your firm's profits.Each consumer has the following demand for annual visits to a park is: Q = 100 - P, where Q is the number of visits to the park per year and P is the price per visit. In Kentucky, this particular park has a monopoly on the park market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that this park could charge each customer? Answer OptionsAnnual Fee = $4050; P= $10 for each visit Annual Fee = $4050; P= $0 for each visit Annual Fee = $5000; P= $10 for each visitAnnual Fee = $5000; P= $0 for each visit