The following figure shows the costs for a perfectly competitive $45 40 35 30 25 20 15 10 5 0 MC 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period $25 what is the profit-maximizing output?
Q: AN INVESTMENT OF P270,000.00 ON COMPUTER SHOP WILL HAVE THE FOLLOWING DATA: UNIFORM ANNUAL…
A: The Future Worth (FW) implies the implied value of an asset as of a particular date in the future…
Q: Assume that rational expectations exist and the economy is operating at potential GDP. If th Fed…
A: The theory of rational expectations refers to the theory suggesting that individuals in an economy…
Q: Consider the Cournot-Stackelberg competing islands of Penang and Grenada discussed in the previous…
A: In this case, Cournot-Stackleberg model is used here. That means in this case, we have two reaction…
Q: 1,800 1,600 1,400 1,200 1,000 800 600 400 200 100 200 300 400 500 600 Quantity. 700 800 900 Prices…
A: Equilibrium is where demand equals supply. There is shortage when quantity demanded is greater than…
Q: Refer to Figure 1. Consumer surplus with the $20 tax becomes a. b. C. d. $20 $100 $450 $350
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: . Suppose U = x₁x2 and the budget constraint is given as x₁ + 1 = B, solve for x and x₂.
A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…
Q: Higher savings means a lower demand for goods and services. Use the DD-AA model with flexible…
A: DD-AA model studies the changes in the exchange rate due to changes in the aggregate demand of an…
Q: Currently it takes teo Belize dollars to buy a U.S dollar. If that numbrr were yo rise to three then…
A: Appreciation of a currency is when it can buy more of foreign goods / currency. And depreciation of…
Q: There are three alternatives X,Y,Z. With 10% MARR, which alternative should be chosen based on…
A: We calculate and compare the present worth of all the three alternatives to choose the best…
Q: A textile firm closes a plant in Texas and transfers production to a plant in South Carolina. The…
A: A person is considered as unemployed when he is able and willing to work but is not able to find job…
Q: Minimum Wages and Unions Assume an industry without legal minimum wages and unions. Show in a…
A: The minimal amount of remuneration that an employer is compelled to pay wage earners for the job…
Q: The graph below is associated with a hypothetical country. Consider an increase in aggregate demand…
A: The total of consumption expenditures, government expenditures, investment expenditures, and net…
Q: fer to Figure 11.1. All of the following events can cause a movement from Point E to Point A EXCEPT…
A: The demand for money is affected by the change in interest rate. The change in interest rate causes…
Q: Consider the market for cod, and then choose the correct statement. O A. Cod fishing is an example…
A: When a group of people in a community use a shared resource for their own gain, the resource for the…
Q: 2. Discuss the connection between education & income inequality.
A: Due to the uneven distribution of wealth and income within the economy, there is a problem with…
Q: Assignment #1 A large wood products company is negotiating a contract to sell plywood overseas. The…
A: Firms will continue to increase their production until it reaches their optimum amount. The optimum…
Q: What factors determine exchange rates? Use relevant examples and charts to support your answer
A: Exchange rates are one of the major indicators of a nation's economic health that are closely…
Q: Suppose the residents of country P consume only peaches and pecans. The table below shows the prices…
A: Given consumption basket = 10 bushels of peaches and 15 bushels of pecans
Q: Suppose that average labor productivity in Country B is $7,000, and that Countries B and E have the…
A: Given that; There are five countries A, B, C, D, and E The average labor productivity of country B…
Q: In economics, what is an example of selection?
A: Economics refers to one of the branch of social studies which focuses on the living of people on the…
Q: True or False: 1. The main reason people demand and hold money instead of ex bonds, is that it earns…
A: Bond: Bond can be issued by business firms or by the government to raise money. Such bonds are…
Q: Suppose the world price of sugar, Pw, is higher than country A’s autarky price, and country A offers…
A: Export subsidy is the per unit amount provided to the sellers by the government in order to increase…
Q: Refer to Figure 11.2. An increase in the money supply, ceteris paribus, will likely Group of…
A: The increase in money supply means the rightward shift in money supply curve and vice versa. The…
Q: 5. Questionable business practices according to antitrust agencies Complete the following table by…
A: Introduction : Pricing : Pricing strategies are the means by which a retailer may maximize his or…
Q: Compared to digital goods, traditional goods have: lower inventory costs. O lower marginal costs per…
A: Digital goods are the new technology goods produced to satisfy the needs of the consumers. These…
Q: explaining the strategic view of bargaining. Present a numerical example and discuss how each player…
A: In bargaining game we set up a game between two players - Buyer & Seller . In this game seller…
Q: Direction: Write T if the statement is correct, and F if the statement is incorrect. 1. Globalism…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first 3 questions for you.…
Q: Consider Solow's model of economic growth, for a closed economy, without population growth or…
A: The Solow growth model is an alternative to the Harrod-Domar growth model. The model states that in…
Q: The steeper portion of the SRAS curve best illustrates the effects of conomy is O Keynesian; very…
A:
Q: Suppose there are three countries, A, B and C, in the world and A imports automobiles from either a…
A: When a group of countries agree to remove tariffs between theselves but their own external tariff is…
Q: A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a…
A: A variable cost is a corporate expense that changes with respect to how much an organization…
Q: As the pandemic has waned the demand for airline ticketshas increased. If the price elasticity of…
A: The measurement of change in the quantity required of a good owing to changes in the determinants of…
Q: Consider the competitive market for sports jackets. The following graph shows the marginal cost…
A: Cost curves represent the various levels of costs paid throughout the production of goods. As the…
Q: If the effective annual interest rate is 4%, compute the equivalent nominal annual interest…
A: Present value is the value of investment in today's dollar Future value is the value of investment…
Q: Briefly explain why the principle that the majority of voters should decide an election outcome may…
A: According to the concept of majority rule, the group with the most members has the authority to make…
Q: 3. A firm has three factories each producing the same item. Let x, y, and z denote the respective…
A: The mathematical link between the expense spent during production of a good and the quantity of that…
Q: You have 1 account: The balance owed is $1500 and a $7500 credit limit. What is the maximum…
A: A debt-to-credit ratio compares the amount of debt an individual owes to the total of credit limit…
Q: eter's TV Supplies is considering a merger with Jan's Radio Supply Stores. Peter's total perating…
A: Average total cost is implied as the sum total of all production costs divided by the total quantity…
Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…
A: The future value formula is given as: F = P (1+R)t F: future value P : present value R : per annum…
Q: K At a government rent ceiling there will be A. more construction of rental housing. B. an increase…
A: Price Ceiling is a type of price control excercised by government where government sets up the…
Q: Consider a town in which only two residents, Hubert and Kate, own wells that produce water safe for…
A: Optimal Strategy under a Cartel Arrangement A relatively small group of suppliers who control a…
Q: Would an increase in interest rates make the Shipping using an equation involving interest rates to…
A: Profit : Profit refers to all about that remains after all costs have been paid.These costs include…
Q: Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by…
A: Subsidy is a some of money given by the government to the producer to provide a support to stand in…
Q: a market is characterized by a positive externality that is not the result of a technology…
A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…
Q: A bank determines that it is prudent to hold $4 for every $100 in deposits. The bank holds surplus…
A: Reserve ratio is the part of deposit that is kept by the bank. Reserve ratio is calculated by…
Q: In moving from 0.4 mg/L to 0.7 mg/L of abatement, show and clearly label on the figure above the…
A: Social cost: Social cost of a given output refers to the sum total that is just enough to be paid in…
Q: Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting…
A: Marginal profit refers to the profit earned by the sale of one extra unit of a good or service.
Q: What factors will shift the supply and demand for currency?
A: According to economic definitions, money is a good that acts as both a store of value and a means of…
Q: The Lorenz curve of income distribution in North is f(x) = 0.1x4 +0.4x³ +0.3x² +0.2x The Gini…
A: In order to determine the average income of a population, economists use the Gini coefficient ,…
Q: Question E4/Stretch Problem If we apply the idea of nitrate contamination (the context of the Unit 3…
A: Any good that generates negative externalities is subject to taxation. The goal of the so-called…
Step by step
Solved in 2 steps
- Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
- Why will profits for films in a perfectly competitive industry tend to vanish in the long run?If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
- What two lines on a cost curve diagram intersect at the zero-profit point?What two lines on a cost curve diagram intersect at the shutdown point?Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
- Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answerQUESTION 17 Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity