Suppose demand for a product is Q = 100 - P and that the product's marginal cost is equal to average cost at $35. If the monopolist's profit-maximizing then consumer surplus is deadweight loss is A. $800; $0 B. $800: $312.50 C. $1,600; $312.50 D. $1,600; $1,000 price is $60, and
Q: In a two-good, two country world, if one country has a comparative advantage in the production of…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: how does freidman reconcile the the apperent inconsistency between short term and long term…
A: Friedman's permanent income theory explains the apparent conflict between the proportional long-run…
Q: Fully describe any legal concerns (including naming relevant laws and such) and how you might…
A: Organizations must develop policies and practices that harmonize local, state, and federal…
Q: Compare and contrast the shapes of the loss distributions for market, credit and operational risk
A: It's virtually accurate to say that taking risks is what bank management is all about. Financial…
Q: 4. Using the Production Possibilities Curve below answer questions a, b and c 50 48 40 Consumption…
A: With the same resource we can produce a lot of different goods. This is because the resources are…
Q: Let the global demand q (in thousand-tonnes per day) for one partic- ular metal be related to the…
A: Given information: p = D(q) = 501-0.01q Where p is the price in thousand dollars per tonne q is…
Q: Analyse, using demand and supply analysis, the relationship between i) inflation and exchange rate…
A: A general rise in price is referred to as inflation. The consumer price index is used to measure it.…
Q: ssume two countries (US and Germany) are facing the decision of whether to participate in the Paris…
A: The Nash equilibrium occurs where a player moves first and then he is followed by the another…
Q: On the first day of the year, a man deposits P5,000 in a bank at 8% a year, compounded annually. He…
A: Deposit = P5,000 Interest = 8%
Q: Explain the law of diminishing returns. Asap
A: Meaning of Production Function: The term production function refers to the situation under which a…
Q: Price of Tutoring(dollars per hour) 60 55 50 45 40 35 30 25 20 15 10 5 0 Market for Tutoring Market…
A: The market demand gives the amount bought by all the market members, the amount of the singular…
Q: al bank conducts an expansionary open mar ition, be careful to make clear the implic Is and the…
A: *Answer: The central bank, in collaboration with commercial banks, conducts open market operations.…
Q: n't skip. 4 Suppose that a bank has a leverage ratio of 25. In this case, the bank will be…
A: Leverage ratio is important for banks as it helps them keep a record of the capital that is…
Q: Question 1) Dave is an expected utility maximizer and his von Neumann-Morgenstern utility function…
A: Let us simplify the utility function - U(W) = 0.8(w)1/3 Initial Wealth = 27000
Q: A student of macroeconomics would study which of the following concepts? Select the correct answer…
A: Macroeconomics refers to the economics which deals with the study of economics considering the…
Q: What are the 3 basic economic problems? Briefly
A: Economic problems arise due to presence of scarcity or in other words, the resources are limited but…
Q: 43
A: The investment in the goods or services or financial assets or companies outside the domestic…
Q: On the following graph, plot Edison's demand for ice cream cones using the green points (triangle…
A: Demand: It refers to goods and services that has been purchased by the consumer. The more consumer…
Q: 10.Before starring in Iron Man, Robert Downey Jr. had appeared in 45 movies that grossed an average…
A: 10. a) Robert Downey Jr. was partly responsible for Iron Man's popularity, he now requires a higher…
Q: Maria is training for a triathlon, a timed race that combines swimming, biking, and running.…
A: The word "opportunity cost" in economics describes the worth of what you must forgo in order to…
Q: Specialization can lead to an increase in the production of all goods only if Select one: O a. the…
A: Specialisation is defined as when any nation, any company or any individual to increase its…
Q: Use the following supply schedule for cherries to draw a graph of the supply curve. Be sure to label…
A: Various price quantity combinations of a supply schedule can be plotted on a graph to obtain the…
Q: How would this change in the long-run? Can you show the graph in the long-run too?
A: The long run is a long time which is enough for capital as a factor of production to be variable and…
Q: Find the interest on 6,800.00 for three years at 11% simple interest. A) P2,244.00 B) P9,044.00 C)…
A: The cost of borrowing money or the return on savings are both expressed as interest rates. It is…
Q: Willy owns a small chocolate factory, located close to a river that occasion- ally floods in the…
A: Given information Worth of the factory without flood=$500000 Worth of the factory with flood=$50000…
Q: The 8th National Development Plan (NDP) is the country’s medium-term blueprint designed to unlock…
A: GIVEN DATA 8th national development plan is the country's medium-term blueprint. which is…
Q: List and briefly explain the functions of money
A: Money is an instrument that act as the medium of exchange for the purchase of goods and services.…
Q: Read the following statements carefully and state whether they are TRUE, FALSE or UNCERTAIN…
A: Economics helps to study the production, distribution and consumption of goods and services.
Q: 06
A: We know that Supply chain refers to the network between supplier & firm to distribute products…
Q: 4. Inflation and interest rates The following table shows the average nominal interest rates on…
A: Nominal interest rate alludes to the interest rate prior to considering expansion. Nominal can…
Q: 4. Why are each of the BRIC countries viewed as potential candidates for global expansion?
A: Brazil, Russia, India, China, and South Africa make up the BRICS. At first, there was only BRIC.…
Q: What are the 5 economic systems?
A: Governments and societies use economic systems to distribute, plan, and distribute resources, goods,…
Q: Assume the ZRA decides to impose a new tax on imported vehicles priced above K200, 0 00. The new tax…
A: Given P1 = K200000 Tax rate = 15% P2 = 15% of K200000 + K200000 = K30000+K200000 = K230000 D1 = 1000…
Q: city government is considering renting space in an all‑day parking garage for its 100 employees. The…
A: Price discriminate, practice of offering a ware at various costs to various purchasers, despite the…
Q: The simple circular flow model shows that Multiple Choice о о о households are on the buying side of…
A: Ans. In the simple circular flow model, there are two sectors that are 1) the Household sector and…
Q: QUESTION 15 Which of the following statements is TRUE about income and wealth? O Income is a flow…
A: Introduction Stock refers to the value of variable at a point of time. It is not time dimensional or…
Q: In command economies, decision-making is Select the correct answer below: O determined by the market…
A: Command Economy is one of the types of economies. The main goal of command economy is the allocation…
Q: Its urgent hand write asap
A: A function establishes the relationship between one input and one output, or between numerous inputs…
Q: Jack consumes only Bread (good x) and Cheese (good y). His utility function is given by U(x, y) =…
A: Given Jack's utility function: U(x,y)=ln(x)+ln(y) ...... (1) Where x denotes bread and y…
Q: Suppose the first bill is passed, raising the probability of catching any given terrorist from 10%…
A: Opportunity cost is the forgone benefit that would have been gotten from a choice not picked. To…
Q: K0
A: We know that Keynes reformulated the QUntity Theory of Money(QTM). He believes that money does not…
Q: You are employed by the state bureau of economic development. There is a demand for a leading…
A: An economic indicator refers to a statistic about an economic activity. Economic indicators allow an…
Q: 1. Suppose the following: I. Two countries each with demand for homogeneous goods given by P(Q) = 40…
A: A relevant item market involves a multitude of items or potential benefits which are viewed as…
Q: Short Answer Part 2 Consider the following sequential-move game: Player 1 Player 2 Player 3 Player 2…
A: In order to solve finite extensive form and sequential games and infer a sequence of optimal…
Q: Briefly discuss four disadvantages of using Cost-benefit analysis to measure utility
A: Cost-benefit analysis: A cost-benefit analysis is a systematic process that companies use to analyze…
Q: If a McDonald's Happy Meal costs $3, how many Happy Meals per week c Instructions: Round your…
A: Given information: A McDonald's Happy Meal costs $3 France's Per Capita income (in 2016) = $38,477…
Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: Benefit–cost analysis requires the monetization of all relevant benefits and costs of a proposed…
A: Value of environmental good is done through various methods to learn the value of these goods from…
Q: 7. Movements along versus shifts of supply curves Consider the market supply of donuts. Complete the…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: 8. The uses of derivatives include: 1) Financial engineering for companies; II) Hedging for…
A: Derivatives includes instruments like options, futures. The value of these instruments are based on…
13.
Step by step
Solved in 2 steps with 1 images
- Currently the market for domestic air travel in OzLand is a monopoly with Qanwings as the supplier. A new supplier, Cheap Flights, enters the market. Suppliers in the market compete by simultaneously choosing the quantity of flights they will supply. Which of the following is most likely to occur after the entry of the new supplier to the market for domestic air travel? a.The total quantity of flights will increase. b.The total quantity of flights will not change. c.The total quantity of flights will decrease. d. It is not possible to say what will happen to the quantity of flights.3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.O OO The above graph shows the market demand function for a product. Assume that the market is served by a perfectly-price-discriminating monopolist with a constant marginal cost of production equal to $4 (MC = $4) and no fixed cost (FC = 0). The deadweight loss equals: DWL - $72 DWL - $0 DWL- -$48 DWL - $84 DWL-$36 $30 $28 $26 $24 $22 $20 Question 23 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
- 28 $55 $50 $45 MC АТС I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 $0 MR 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. At the profit maximizing Output (Q) level, the monopolist will earn a Total Profit of: Sel one: а. $1,200 b. $2,200 c. $800 d. $2,000 $$Assume quantities need not be integers. A monopolist constrained to charging the same price for each unit faces a linear demand curve and a constant marginal cost equal to $20. Demand is unit elastic at $100. Which of the following is true? A. A per-item price of $100 maximizes producer surplus. B. A per-item price of $100 maximizes total surplus. C. Revenues increase as it increases price from $100. D. Profits increase as it increases price from $100 E. Variable costs increase as it increases price from $100Price and costs (pounds per unit) O A B с F C+D. A+B D חי GH C+D+E+F+G+H A+B+C+D+E K L Which area(s) in the above figure shows the consumer surplus at the price and quantity that would be set by a monopolist? MC MR Quantity (thousands of units per year) D
- 29 $55 $50 $45 MC АТС I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. The monopolist will maximize its profit by choosing Output (Q) level and charging Price. Select one: а. 120; $20 b. 160; $30 С. 120;B $35 d. 160; $25 $$A college has two types fo students: students from middle-income families who have an estimated price elasticity of demand equal to -1 1/2 and students from lower-income families who have an estimated price elasticity of demand equal to -2 1/2. The colleges marginal cost for providing one-year's academic credit is $4,500 regardless of which student is receiving the education. a. What annual tuition (price) should the college establish for students from middle-income families? b. What annual tuition(price) should the college establish for students from lower-income families?Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar.a. Based on the given information, explain with TWO practical reasons whether theairline should charge a higher price on business travelers or vocational travelers.Explain without calculation.
- 19. Firm A is monopolist in x market, and it consumes one unit of y in order to produce one unit of x. It costs 5 + py TL to produce one unit of x. (py is the price of product y.) y is produced by a monopolist, B, and it costs 5 TL to produce one unitf of y. The demand for x is defined by px = 50-qx (px product price, qx quantity demanded). a) Assume that px is set by Firm A and py is set by Firm B. What would be the equilibrium prices for products x and y? Calculate Firm A and B's profits. b) Assume that Firms A and B merge together. What would be the equilibrium prices for products x and y? Calculate the profits of the new firm. c) Would the merger between A and B increase the consumer surplus? Why (not)?Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?Exercise A.6 A monopolist facing the demand curve Q = 42 – 0.6P operates with constant average and marginal costs equal to 20. a) Calculate the quantity, price and profit obtained by the monopolist. Represent graphically. (b) What quantity, what price and what benefit will you get if you can apply first-degree price discrimination? Calculate the consumer surplus and represent graphically. c) The monopolist warns that he can separate consumers into two distinct groups with demands Q1 = 12 - 0.1P1 and Q2 = 30 - 0.5P2. Calculate the quantities, the prices you will set in each market, and the profit you will make. Represent graphically.