2. Determine the amount of producer surplus in the following situations: Gordon lists his old electric train set for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.
Q: What is the number of periods that a capital of $500 invested at a rate of 10% will rise to $3.5007
A: Future value [FV] = 35007 Present value [PV] = 500 Interest rate [r] = 10% Number of periods [n] =…
Q: A monopoly drug producer that has a constant marginal cost of $1 sells in only two countries and…
A: Monopoly firm is the singke seller which sells the product to the large consumer and charge higher…
Q: 4. Explain each key ingredients. (ii) There should be willingness to buy the product.
A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…
Q: To ensure that utilities receive a normal rate-of-return, regulators set price equal to: a.…
A: Utilities are provided by monopolists due to capital intensive infrastructure. The monopolies…
Q: An increase in equilibrium quantity can be caused by (both options must be true) O a decrease in…
A: Market is in equilibrium when market forces interact and intersect at certain price level and…
Q: The supply of bonds comes from Select one: O A. Savers OB. Borrowers O C. Financial Intermediaries O…
A: A loan given by an investor to a borrower for a certain amount of time in exchange for consistent…
Q: an oligopolistic market there are two identical firms facing a market demand P=11-Q where Q is total…
A: In the Cournot model, the firms compete on the basis of output. In stackelberg model, one firm…
Q: Suppose you have a certain amount of cash on hand at the moment and you decide to invest it in a…
A: Given information Monetary correction rate=1.0% per month The difference between nominal interest…
Q: 4. The market demand function for birthday cards in Greenwich Village is: P = 100-100. The total…
A: Given: P=100-10Q C=60+20q
Q: Glen and Ben both drink coffee and coke every day. Glen likes coffee a lot more than Ben and Ben…
A: A utility function states the amount of satisfaction gained by the consumer as a function of a…
Q: What happens to cash and deposits when: • cr = 0 • rr = 0.2 • Initial cash = $5000 How would the…
A: The commercial bank creates money by advancing the loan to the general public. The money creation…
Q: 3. The total (abatement) cost for cutting down on CO2 by R is C(R) = 7R² + 10R. The total benefit of…
A: Externalities are the third person thing. It is usually the harm/benefits caused by the producer…
Q: One of the objectives of government is to promote economic stability. Explain how the authorities…
A: When the economy is stable, people have access to the resources needed for a healthy lifestyle.…
Q: d. For this part, suppose that Ouroboros has two corporate customers. The first corporations' demand…
A: In part d, there are two types of customers For costumer A, demand function DA=10,000-p ....…
Q: John Doe who plans to deposit $5,000 at the beginning of each year for the next seven years to save…
A: The term "future value" (FV) refers to a method of estimating how much cash or an asset's present…
Q: A bond with face value of P10,000 with a bond rate of 5% payable annually is to be redeemed after 10…
A: Face value alludes to the dollar value of a monetary instrument when it is given. The face value of…
Q: 008, the Federal Reserve began paying interest on reserves held by banks. The interest rate they…
A: Federal reserve: The U.S. focal financial framework — the Federal Reserve, or the Fed — is the most…
Q: Initial Investment Estimated Life Salvage Value Annual Income Annual Expense $50,000 15 $15,000…
A: Given value: Initial Investment for model 334 A = $80000 Estimated life = 30 years Salvage value =…
Q: Which of the following could not shift the demand curve to the left in the market for Switch…
A: Demand curve is a negatively sloped line that shows inverse relationship between price and quantity…
Q: 5. Illustrate in appropriate diagram (change in demand or change in supply) the impact on the good…
A: A shift in consumer preference to buy a specific good or service, regardless of a change in price,…
Q: Consider an exchange problem in which 10 units of x and 5 units of y are to be allocated between…
A: Introduction Production in Pareto efficient when it is not possible to reallocate the resources to…
Q: Consider the price demand function 3x+p = 400 If we solve this equation for x we get X=400-p/3 a)…
A: In the mentioned question we have been given the demand function which is 3x + p = 400. From this we…
Q: Show complete solution: The maintenance expense on a machine is expected to be $800 during the…
A: According to present value, a sum of money is worth more now than it will be tomorrow.To put it…
Q: Suppose the price elasticity of demand for a good called "widgets" is 0.4. Is this good more elastic…
A: The degree to which a change in an economic element is met with a corresponding shift in demand is…
Q: Consider the following strategic game (both players move simultaneously): Up Down Left 0,0 8,5 Right…
A: Nash Equilibrium tells us the best response of both the players given what the other player is…
Q: Let p(t) represent the consumer price index. If the rate of inflation of the price index is constant…
A: Given p(t) is the consumer price index function which is a function of time t p˙p=5% ....…
Q: @0 (3) (d) 9. C I a foodien 6. Troy buys a sound system priced at $8,820.00 but paid $9,702.00 with…
A: It is given that the price of the product is $8,820.00 and the consumer purchases the commodity at…
Q: Two firms are competing to establish one of two new wireless communication standards, A or B. A…
A: Pure Strategy Nash Equilibrium is achieved at the point where both firms choose the strategy ,…
Q: Think of a person who likes having impact on their social networks. To do so, they always follow the…
A: Marginal returns = An increase in the total returns because of an additional unit of something.
Q: Prospective car buyers are sometimes confronted by sales representatives who argue that they can…
A: Utility theory in economics aims to explain how different consumers behave in an economy. According…
Q: Real GDP C 177 170 163 142 250 240 230 200 100 I 54 54 54 54 72 54 The above table shows the real…
A: Equilibrium aggregate expenditure is occur when the Real GDP is equals to Aggregate expenditure so…
Q: When quantity demanded falls, all else. equal, O we move to the right along the demand curve O…
A: When quntity of demand fall all else equal given below
Q: An increase in disposable income worsens the current account because: O A. consumers demand more of…
A: Disposable income, otherwise called dispensable individual pay (DPI), is how much cash that an…
Q: Question 2 of 3 Fill in the blanks: The owner's plan was to generate Php9M per year in sales by…
A: Net present value = Present value of benefits - Present value of costs
Q: Macroeconomic Envinonment in Qatar 1. Definitions of major macroeconomic indicators 2. Statistical…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Why does the rate of return (RoR) regulation stimulate more than the efficient level of capital…
A: Monopolies are type of market firm where there's a single seller and thus posses power to control…
Q: 1
A: We know that In the long run, competitive firms will operate at a level where marginal cost cuts the…
Q: In order for a monopolist to sell a quantity of 12 units, the price must be $6. Marginal revenue at…
A: A monopolist is a single seller having multiple buyers and thus holds the power to control the…
Q: Give simple states for the grounds, which are criticized by mill's theory.
A:
Q: Q.2.2 Butter and margarine are substitutes in consumption. Explain how a decrease in the price of…
A: The goods which can be used in place of each other to satisfy a want are substitute goods and the…
Q: The monopoly can verify consumers to decide which market they belong to so that it charge different…
A: Monopoly is a situation where there is a single seller in the market. In conventional economic…
Q: A profit maximizing firm with short run total cost given by: TC = 5q² + 100q + 250 is currently…
A: Total cost is composed of fixed cost and variable cost. Variable cost depends on output and fixed…
Q: A well-functioning financial system does all of these EXCEPT: a. foster economic growth by…
A: The objective of the financial system is to manage the availability of funds in the market. This not…
Q: "Unemployment is defined as a state of wo ssness for a person who is fit and willing to ork at the…
A: "A person who is able and willing to work at the going rate of pay is said to be unemployed. It is a…
Q: To promote long-run growth, the primary economic function of the financial system is to: Group of…
A: Financial systems that work efficiently distribute resources to people with the finest ideas and…
Q: Assume that a pound of blueberries costs $2. Usually, James purchase 30 pounds of blueberries in one…
A:
Q: Beginning at long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, if…
A: The dynamic aggregate supply and dynamic aggregate demand model is based on the aggregate supply and…
Q: Real GDP growth rate for 2016 and GDP deflator in 2016
A: Y=C+I+G+NXwhere Y=GDP which is equal to the gross market value of all goods and services produced…
Q: Gordon Inc. has a number of copiers that were bought four years ago for $20,000. Currently…
A: In the United States, the depreciation method utilized for tax reasons is called the modified…
Q: The demand and supply functions for good x and good y are given as: Q = 145-2Px + Py Q= = -45 + Px Q…
A: Introduction Demand for a commodity is the amount of a commodity that a consumer will purchase it at…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) PRICE (Dollars per headset) 350 315 280 245 210 175 140 105 70 35 0 0 Demand Supply 85 170 255 340 425 510 595 680 765 850 QUANTITY (Millions of headsets) Total surplus in this market is $ million. + Equilibrium Δ Consumer Surplus Producer SurplusConsumers' and Producers' Surplus The management of the Titan Tire Company has determined that the quantity demanded x of their Super Titan tires/week is related to the unit price p by the relation p = 156 – x2 where p is measured in dollars and x is measured in units of a thousand. Titan will make x units of the tires available in the market if the unit price is p = 60 + dollars. Determine the consumers' surplus and the producers' surplus when the market unit price is set at the equilibrium price. (Round your answers to the nearest dollar.) consumer's surplus $ 345 producer's surplus $ 171 Need Help? Watch It Read ItQuestion 8 (1 point) Listen Junior's Sporting Goods sells camping equipment and outdoor gear. The company is willing to sell a particular fishing pole for as little as $55. Its main competitor is Sporty Gear, which is willing to sell the fishing pole for as little as $35. The current market price of that type of fishing pole is $75. What is the total producer surplus for the two firms? Your Answer: Answer Question 9 (1 point) Listen Karen can make 1 jackets or 17 ties in one day working at the clothing factory. Joe can make 8 jackets or 32 ties in one day working at the clothing factory. What is Joe's opportunity cost of producing 1 tie? Round your answer to one decimal place. Be sure to enter the correct units for what they are giving up. Your Answer: Answer units
- A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or FalsePQ 8.05 A cinema has a capacity of 250 seats. Suppose the cinema increases the price of a ticket from $20, at which 250 tickets are sold, to $25, and it sells 150 tickets. The price increase caused a drop in total consumer surplus of $ . (Hint: draw this scenario out before trying to calculate). Type your numeric answer and submit10) Refer to the accompanying figure. When this market is in equilibrium, total producer surplus in the market is per day. 60 50 40 30 Price ($/restaurant meal) 20 10 0 A) $500 B) $375 C) $250 D) $0 S D 5 10 15 20 25 30 35 40 45 50 Quantity (restaurant meals/day)
- Suppose five construction companies have the ability to build a factory overseas to produce a manufactured good The marginal cost of building a factory for each construction company is shown in the table below: Producer Company 1 Company 2 Company 3 Company 4 Company 5 Marginal Cost S1,000,000 $1.250,000 $1,300,000 $1,350.000 $1.500.000 If the market price of an overseas factory is $1.425,000, what is the surplus for these five companies? Producer surplus is S (Enter your response an a whole numberConsumers' and Producers' Surplus The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p = −0.2x2 + 200 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x2 + 7x + 100. If the market price is set at the equilibrium price, find the consumers' surplus and the producers' surplus. (Round your answers to the nearest dollar.) consumer's surplus $ producer's surplus $Refer to Table 4-4. The table above lists the marginal cost of sunglasses by Miami Dade Shades, a firm that specializes in producing designer sunglasses. If the market price for a pair of Miami Dade Shades sunglasses is $175, producer surplus is $10. $35. $140. $230.
- Suppose that Nabisco is willing to sell its first packet of Oreos for $1, the second for $2, the third for $3, and the fourth for $4. If the price of Oreos is $2.50, what is the producer surplus? (Assume that Nabisco CANNOT sell partial packs of Oreos.)Question 15 (1 point) Suppose you are an analyst for the Coca-Cola Company. An individual's inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents). If Coca-Cola is produced according to the cost function C(Q) = 1,000 + 20Q (in cents), compute the surplus consumers receive when Coca-Cola charges the optimal block price. %3D $11.52 (1,152 cents) $0 $576 (57,600 cents) $1,152 (115,200 cents)The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $22, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $22, $30, and $38 (one buyer at each price). In this market, the equilibrium price will be per widget, and the equilibrium quantity will be ? widgets.
