Suppose a country's mobile phone industry is supplied by only two firms (i.e. an oligopoly). Explain how the presence of two firms affects the price elasticity of demand of each firm's output.
Q: How do we strike the balance between the good and bad side of globalization ? Explain substantially…
A: Leaders and officials from all around the world meet to address global concerns and establish common…
Q: Identify a perfectly competitive firm that you have purchased a good or service from in the last…
A: Firms are said to be in perfect competition when the following conditions occur: (1) many firms…
Q: 1. Consider the figure below, which depicts the matching of jobs and workers. There are two jobs at…
A: Risk averse people will not be willing to take risks.
Q: Question 44 In the market for corn, a natural disaster destroys must of the crop.…
A: Market equilibrium refers to that situation when the demand of a commodity is equal to the supply of…
Q: Question 55 In the figure given below, we observe Price Level LRAS SRAS P1 AD Real GDP Y1 YP Oal a…
A: The curve that depicts various quantities of goods and services being demanded at various levels of…
Q: 9.76 percent and the face value is $1,000
A:
Q: A country experiences economic growth if Question 53 options: a) real GDP increases b)…
A: A country experiences economic growth means a increase in the real value of goods and services…
Q: 4. (0,.7 or 10) Provide an example of product differentiation using any industry you want (e.g.,…
A: The answer is as follows:-
Q: Let Qd=1600-300P ; and Qs=1400+700P for dark chocolate bars. Explain and illustrate the…
A: Here, demand and supply functions for dark chocolate bars are given as: Qd=1600-300P Qs=1400+700P…
Q: Fiscal Policy refers to the idea that aggregate demand is affected by changes in Question 58…
A: Fiscal policy is a tool of government which they use to control the economy stability.
Q: Assume that the macro-economy is initially in short -run equilibrium. What happens to the…
A: The measure that depicts the final value of goods and services being produced in an economy during a…
Q: $4 A C D3 D D2 Number of pizzas per month Figure A 1. Refer to Figure A. The movement from point A…
A: Demand curve shows an inverse relationship between price and quantity demanded. Increase in price of…
Q: Quantity of Y 6. 4. 10 Quantity of X Figure 1 Refer to Figure 1. The consumer redirected her…
A:
Q: Which of the following statements is FALSE? The monopsonist is a wage taker. The monopsonist has…
A:
Q: Exogenous changes in spending refer to changes in planned spending: O related to changes in output…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: 3. If substitution effect is greater than income effect, would physicians spend more time with…
A: Since you have posted a multiple question, we will solve first question for you. If you want any…
Q: Scenario: Monetary Basc and Money Supply Assume that the reserve is 209% and the monetary aggregates…
A: Answer; Option (a) $225 billion is correct
Q: puld decrease by the following amounts for years 1 to 7: 1 $389,500 399,400 3 411,000 4 425,400…
A: Net present worth, or NPV, is utilized to ascertain the ongoing complete worth of a future stream of…
Q: How crucial is utility for it organization
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Consider the bargaining problem of splitting a pie of size 1 with utility u(x1) = x1 for player 1…
A: Given that: v(x2) = 2x2 - x22
Q: by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the…
A: A break-even analysis is an economic apparatus that is utilized to decide the expense construction…
Q: In the long run, which plan has the higher payout? Plan A Payout P(Payout) −$35,000 0.57 $30,000…
A: The long run is a amount is a during which all factors of production and prices are variable. within…
Q: Suppose that two firms with zero marginal costs are facing the inverse demand P=240-Q. Show that it…
A: Given; Inverse demand function; P=240-Q Marginal Cost= 0 There are 2 firms, therefore;…
Q: 2. Christiaan can go hiking, or he can stay at home. Hiking would be fun if nothing bad happens, but…
A: A rational economic agent's preferences are such that it assign higher utility to the alternative he…
Q: Say's law explains the short-run differences between actual GDP and potential GDP. Select one: O…
A: Potential GDP basically refers to a measure of an economy's maximum, ideal output, which includes…
Q: Please answer fast A profit-maximizing shop in a town has a constant marginal cost of $10 and can…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: Shield deodorant and Gucci Perfume are products that satisfy Physiological needs. True False…
A: 1. Shield deodorant and Gucci Perfume are products that satisfy Physiological needs. - FALSE
Q: 2.Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is…
A: The solutions to the three questions are as under:
Q: Which option is the most effective for companies and employees: a standard fee-for-services health…
A: In the insurance market, there are different types of health insurances offered by the insurance…
Q: Briefly describe the key assumption, implication and conclusion of the Pure Expectations theory.…
A: The pure expectations theory, which claims that an interest contract's term structure entirely…
Q: write the equation for the 45 degree line starting at zero. is this line above or below the supply…
A: A line that depicts the equality of the variable estimated on the graph's upward pivot and the…
Q: Question 28 Use the graph given below to answer this question. Assume that the MPC is 0.8. How much…
A: The marginal propensity to consume (MPC) is defined as the percentage of an increase in pay that a…
Q: Question 2 If the MPC is 0.80 then the MPS is Question 2 options: a) 0.30 b) 8 c)…
A: Marginal propensity to consume refers to the portion of increased income which is used for…
Q: What makes suburbanization possible?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: A capitalist interested in the California plum market has asked you for an analysis. The capitalist…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: Use Cramer's rule to find the solutions for x.y and z given the following equations: 5x - 6y + 4z =…
A: Answer; Ans. Option 1: is correct answer.
Q: How does monopolistic competition differ from perfect competition A) There are more sellers in a…
A: The monopolistically competitive market is different from the perfectly competitive market in a way…
Q: Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays…
A: The answer is as follows:-
Q: Please list and explain in your own words the benefits and costs when a country adopts a flexible…
A: The currency regime in which the exchange rate is set by the market forces of demand and supply of a…
Q: In the following normal form game, perform iterated elimination of strictly dominated strategies.…
A: The Nash equilibrium best course of action provided the strategy of rival firm has been given.
Q: Please write 2 pages about: Inverted yield curve (Treasury inverted yield curve) and what it means…
A: The extraordinary decline in yields on longer-term debt below yields on short-term debt of the same…
Q: Il represents one month). B¥30 D¥80 GY 70 J ¥200 L ¥ 20 C¥40 EY 20 H ¥30 K ¥60 F ¥50 months,…
A: *Answer:
Q: The decision to invest in human capital does NOT involve which of the following? Direct expenditures…
A:
Q: This diagram shows the age-earnings profiles of three different individuals who opt to choose three…
A: We are going to use opportunity cost principle to answer this question
Q: ligopoly firms that compete with each other will have ___________ profits than oligopoly firms that…
A: Oligopoly refers to a market structure where few large firms dominate the market. There is…
Q: In 2016 final sales equal $40o billion, and the change in business inventories is $100 billion. GDP…
A: Information given is:- Final sales = $400 billion Change in business inventory = $100 billion
Q: "Why do economists nearly uniformly support an independent Fed rather than one beholden directly to…
A: The Federal Reserve — is the most remarkable monetary establishment in the US, maybe the world.
Q: A world without credit is it possible
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: ne the economy is in short-run macro-equilibrium at E1. If the federal nment engages in expansionary…
A: Fiscal policy is associated with changes in expenditure and taxes so as to alter the AD(aggregate…
Q: Which of the following statement is true? * During the maturing stage in the product life cycle…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Suppose a country's mobile phone industry is supplied by only two firms (i.e. an oligopoly). Explain how the presence of two firms affects the
Step by step
Solved in 2 steps
- If you have a graph showing a monopolistic competitive situation in which demand shifts to the left in the long run but your graph only shows the MR curve in the short run, how do you figure out where the long-run MR line should go on the graph? (I have 2 demand curves (sr and lr), but only 1 MR curve (sr). I think it would be to the left of MR sr, but don't know how to draw it. One would need to know this to figure out excess capacity and markup, right?Consider a monopolistically competitive market in long-run equilibrium, and a firm that is in the market. Suppose there is a shortage of a key input, so that every firm's ATC curve shifts up by a fixed amount. If the firm remains in the market in the new long-run equilibrium, what happens to the price at which it sells the good, and what quantity does it sell? Price goes down, quantity stays the same Price goes up, quantity stays the same Price goes down, quantity goes down Price goes up, quantity goes downFirms compete in different types of market structures. In the real world, most markets are either monopolistically competitive or oligopolistic, and a few markets have a monopoly. Note that perfect competition is rare because no market has all the characteristics of a perfectly competitive market as described by the theory of perfect competition. Explain which firm is likely to face a more elastic demand curve: a monopoly or a pizza shop?
- Which of the following is shared by both monopolistically competitive markets and prefectly competitive markets?A) Suppose there are just two firms, 1 and 2, in the oil market and the inverse demand for oil is given by P = 90 – 3Q. The marginal cost for each firm is €18. Calculate the level of output that each firm would produce at the Cournot equilibrium. B) Suppose there are just two firms, 1 and 2, in the oil market and the inverse demand for oil is given by P = 60 – Q. The marginal cost for each firm is €36. What price should Firm 1 charge at the Cournot equilibrium? C) Consider the production function Q = 10KL. Will the MRTS for this production function remain constant along the Q = 200 isoquant? Explain briefly.Dell and Sony compete primarily by price. Each firm must choose either a high price or a low price simultaneously. Use the following information to create the profit matrix: If Dell and Sony both set high prices, Dell’s profit is $40 million and Sony’s profit is $35 million. If Dell sets high price and Sony sets low price, Dell’s profit is $25 million and Sony’s profit is $40 million. If Dell sets low price and Sony sets high price, Dell’s profit is $50 million and Sony’s profit is $10 million. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million. Please answer the following questions: Does Sony have a dominant strategy? Dell? If so, which one? If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for this profit matrix? Instead, if Dell and Sony maximize their joint profits cooperatively, what is the equilibrium? Assume they keep their agreements.
- Dell and Sony compete primarily by price. Each firm must choose either a high price or a low price simultaneously. Use the following information to create the profit matrix: If Dell and Sony both set high prices, Dell’s profit is $40 million and Sony’s profit is $35 million. If Dell sets high price and Sony sets low price, Dell’s profit is $25 million and Sony’s profit is $40 million. If Dell sets low price and Sony sets high price, Dell’s profit is $50 million and Sony’s profit is $10 million. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million. Please answer the follow questions: Does Sony have a dominant strategy? Dell? If so, which one? If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for this profit matrix? Instead, if Dell and Sony maximize their joint profits cooperatively, what is the equilibrium? Assume they keep their agreements.Suppose that a company operates in the monopolistically competitive market for denim jackets. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 PRICE (Dollars per jacket) 8 20 60 50 X ATC 20 MC MR 2 2 2 2 10 0 0 30 40 50 60 70 QUANTITY (Thousands of jackets) 10 20 80 Demand 90 100 Mon Comp Outcome Min Unit CostSuppose that a company operates in the monopolistically competitive market for denim jackets. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? PRICE (Dollars per jacket) 100 90 80 70 60 40 30 20 MC 10 ATC MR Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of jackets) + Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that. firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is at the optimal quantity for each the minimum average total cost.
- Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied by firm 1. The market demand is Q= 100 – 4 P. For firm i, the total cost of production is TC(q) =5q,+2. What is the optimal quantity supplied by firm 12 10 20 30 40 QUESTION 6 Consider the following Stackelberg duopoly. Both produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied from firm 1. The market demand is Q= 100 - 4P. For firm i, the total cost of production is TC(q) =5q,+2. What is the market clearing price? O 10 O 15 20 O 25PRICE (Dollars per shirt) 100 90 80 70 60 50 40 30 20 10 0 MC 0 10 ATC True Demand MR + 20 30 40 50 60 70 80 QUANTITY (Thousands of shirts) O False 90 100 + Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is average total cost. at the the quantity at which firms minimize True or False: In long-run equilibrium, a monopolistically competitive firm charges a price that is above marginal cost.Suppose that a firm produces polo shirts in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost PRICE (Dollars per shirt) 0 10 20 True O False MR Demand 60 QUANTITY (Thousands of shirts) ATC 40 BO 190 100 Mon Comp Outcorne Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium is Min Unit Cost True or False: This indicates that there is a markup on marginal cost in the market for shirts. at the the efficient scale.