Which of the following is true for both perfect and monopolistic competition? O Firms produce a homogeneous product. O There is freedom of entry and exit in the long run. Firms face a downward sloping demand curve. Firms produce a differentiated product.
Q: Suppose that Canada imports pearl necklaces from India. The free market price is $111.00 per…
A: A tariff is a tax or duty imposed by a government on goods and services that are imported or, in…
Q: how do i put this question in exel?
A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…
Q: In economics, what does the term "inflation" refer to? a) The rate at which a currency depreciates…
A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…
Q: Which of the following best illustrates the law of demand? O Increased purchases of Big Macs as the…
A: The law of demand provides an explanation of how the consumer responds to price changes. There…
Q: Consider an organisation that produces car engines. For one of its projects the company notices that…
A: The issue in the hypothetical situation is that an organization that manufactures automobile engines…
Q: A. Find equations for the firm’s fixed cost (FC), variable cost (VC), average total cost (ATC),…
A: The Fixed cost is the cost that is incurred irrespective of the level of output that is produced ,…
Q: Which of the following is NOT an example of a government-supported cartel? milk cartel in the United…
A: A government-supported cartel is an agreement between businesses to reduce competition and raise…
Q: a) On the graph to the right, use the line drawing tool to draw the total cost curve for each option…
A: A total cost curve is a graph that represents the total costs of production as a function of the…
Q: Consider two firms with identical cost structures competing each other in the market of a good whose…
A: A duopoly is a market form with only two dominant firms that dominate the production or distribution…
Q: 1. You plan to make a lump-sum deposit of $5000 now into an inve 6% per year, and you plan to…
A: The timeline for this question is drawn below:
Q: If your investment plan pays an APR of 7% and you want to have $0.9 million when you retire in 27…
A: The Annual Percentage Rate (APR) is a financial term that represents the yearly return on an…
Q: Given this model, what would be the change in equilibrium level of income were G to increase to 250?
A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…
Q: Figure 9-24 The following diagram shows the domestic demand and supply in a market. Assume that the…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…
Q: Average fixed cost (AFC) A) falls as output falls. B) rises as output falls. C) rises as output…
A: The Fixed cost refers to the cost that does not change with change in the level of output. The fixed…
Q: The table shows the supply schedules of B's and G's (the only candy sellers in the market) Quantity…
A: Market supply is obtained by adding the individual supplies of all the firms in an economy.
Q: Assume that banks hold no excess reserves and that all currency is deposited into the banking…
A: Scenario 1: Increase in the Money Supply by $60 millionGiven:Required reserve ratio (RRR) =…
Q: Assume that the hourly price for the services of tarot card readers has risen and of these services…
A: The law of demand states inverse relationship between price and quantity demanded. Put differently,…
Q: Assume that the CPI in 2013 is 115. The inflation rate is 1.5% in 2014 and 2.5% in 2015. What is the…
A: CPI is a broadly used monetary indicator that measures modifications in the avg. price paid through…
Q: Clan Goods Mitary Goods Cvillan Goods Military Goods A OOC 0 A 40 0 Duckistan Production…
A: PPC: Graphical representation of the combination of two goods that can be produced in the economy in…
Q: Suppose that Martha’s income is $40,000 per year. She can spend it on health care visits, which cost…
A: Utility maximization problem: With the given prices and the income, a consumer chooses his…
Q: 16. Demand is said to be elastic if a. the price of the good responds substantially to changes in…
A: Elasticity of demand is the responsiveness of the change in quantity demand to the change in…
Q: Consider the demand for a good illustrated in the graph below. Suppose the market price decreases to…
A: Demand curve represents the quantity that is demanded in the economy by the consumer corresponding…
Q: The figure at right shows the market for a particular good. If the market is controlled by a perfect…
A: The perfect price discrimination refers to the price discrimination strategy where a seller charges…
Q: 4-70 The following cash flows are equivalent in value if the interest rate is i. Which one is more…
A: Cash flow refers to the sum of money recorded as receipts or disbursements in a project's financial…
Q: 8. A Tax on Sellers (ID: 075.06.MANK09) Suppose the government imposes a 20-cent tax on the sellers…
A: The connection between the quantity of an item or service that customers want and the quantity that…
Q: Consider the graph below. Assume that, initially, an economy has long-run aggregate supply…
A: aggregate supply refers to the total supply of goods and services that firms in a national economy…
Q: The income and expenditure approaches to measuring a nation's GDP can be combined using the circular…
A: Aggregate demand:The entire amount of products and services demanded across all economic sectors…
Q: The production of electricity creates pollution. When deciding how much electricity to buy,…
A: Cost of Pollution:The cost of pollution refers to the economic and environmental impacts associated…
Q: (Figure: Monopolistic Competition) Based on the graph, under monopolistic competition economic…
A: The model of monopolistic competition makes an assumption that the items and services produced by…
Q: ) A consumer with income I=120 facing prices pX = 4 and pY = 8 for two goods X and Y (for each good…
A: The marginal rate of substitution (MRS) is a concept in economics that measures the rate at which a…
Q: Question 4 What is the optimal quantity to produce? A The maximum quantity that you can produce B…
A: The optimal production level describes the level of production which maximizes the firm's profit…
Q: Functions like the one below are well known to economists: f(x,y) = 520 - max(24.6x,42.8y) Each…
A: A corner point, in the context of mathematical optimization and functions, refers to a point on the…
Q: Refer to Figure 10-2. At Q3, how does a consumer value the cost of the product? The marginal…
A: Consumers' willingness to pay for a product in different quantities, reflecting their particular…
Q: If the equilibrium price of lychee fruit has fallen while the ca O a severe drought that caused many…
A: The equilibrium occurs where the demand and supply forces are equal. Change in demand or supply…
Q: For a firm selling its product in a purely competitive market, the marginal revenue product of labor…
A: The Marginal Revenue Product of Labor (MRP) is a crucial economic concept used by firms to determine…
Q: Labor unions seek to increase the demand for labor by I. increasing the number of workers…
A: Labor Unions: Organizations formed by workers to protect their rights and interests in the…
Q: Consider the following dynamic IS-LM model. C(t) = 20+ 0.8Y(t-1) Ya(t)= Y(t) - Tx(t) Tx(t) = 5…
A: The IS-LM model is a macroeconomic framework used to analyze the relationship between real output…
Q: QUESTION 3 Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an…
A: A loan is a sum of money that one or more individuals, businesses, or other organisations acquire…
Q: The figure shows the pizza market. A) If the price of a slice of 4-point pizza is $3, what is the…
A: Consumer Surplus: The extra benefit consumers receive when they pay less for a product than what…
Q: Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the…
A: This can be described as the concepts that help an individual to know about the efficiency of…
Q: This year (10 years after you first took out the loan), you check your loan balance. Only part of…
A: Interest rate:It is the rate that an investor on this amount of investment receives. The principle…
Q: In an AD/ASAD/AS diagram, unemployment? O a shift to the left in either AS or AD O a shift in AS to…
A: Cyclical unemployment and the economic slowdown and recession are related. The total demand in a…
Q: Output 0 1 12 3 4 S Mumple Choice Refer to the demand and cost data for a pure monopolist given in…
A: The pricing strategy under which the seller charges each individual consumer the maximum price they…
Q: 9. Given this diagram of Consumption and Savings functions, What will be the level of savings at an…
A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…
Q: If the demand for French bread is elastic and the baker holds a French bread sale A. he will sell a…
A: The Demand Curve is the number of goods a consumer is willing to produce.The supply curve is the…
Q: Is it possible to find equilibrium prices in a linear exchange model for six countries whose…
A: International trade refers to the exchange of goods, services, and capital between countries or…
Q: an external cost of $2 is imposed on members of society. In the absence of any government…
A: Externalities refer to the costs or benefits of an economic transaction, incurred by a third party…
Q: Suppose a local government votes to impose an excise tax of $0.90 per bottle on the sales of bottled…
A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…
Q: 2. Choose 1 country from Latin America, or Africa, or Asia. Find its birth (fertility) rate, death…
A: The birth rate of a country is a very important indicator along with the mortality and the…
Q: What is the current value of Euro today. How has it behaved over against the US dollar since its…
A: Money, a critical component of modern economic systems, has undergone substantial change. Its…
Step by step
Solved in 4 steps
- The profit-maximizing firm illustrated in Figure operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? Price 4 O MC ATC AVC D MR QuantityThe figure shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. What is the firm's profit-maximizing price? OA. $10 B. $4 OC. $8 OD. $12In an industry comprised of three companies, which are small-scale manufacturers or an easily replicable product unprotected by brand recognition or patents, the most representative model of company behavior is: O oligoply. O perfect competition. monopolistic competition.
- PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 + 0 MO 50 ATC MR Demand 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) ++ Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. Profit or Loss profit, which means there areSuppose the market for fast-food value meals is monopolistically competitive, with many restaurants selling their own brand of food. Assume the restaurants in the industry behave optimally by maximizing profit. The figure to the right represents the market for one monopolistically competitive firm's value meals. How will this figure change as the market moves toward long-run equilibrium? In the long run, O A. the average cost curve and the marginal cost curve will shift up because the firms are currently making profit. O B. the demand curve will shift to the left and become more elastic because the firms are currently making profit. nothing will change because monopolistically competitive markets have barriers to new firms entering. OC. O D. the demand curve will shift to the right and become more elastic because the firms are currently experiencing losses. O E. nothing will change because the firms in this market are breaking even. Price and cost (per value meal) 8.00- 7.60- 7.20 6.80…The market for agricultural products such as wheat or corn would best be described by which market model? O monopolistic competition Opure competition Opure monopoly oligopoly
- Please dont copy and paste the answers One of your former peers starts up a firm after graduating NYUAD. However, he didn’t take Markets so is unsure if he is behaving optimally. He’s asked you for help. His firm faces monopolistic competition, has diminishing returns to its inputs and uses a fixed input. He is producing at a quantity such that P=MC, and he makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this situation on a graph. Label the quantity, price and profit of the firm under his strategy. b. Is his strategy maximizing his profits? Explain how he would do so if not. Label the quantity, price and profit of the firm under the optimal strategy on your graph in part a. c. He asks you about what you predict might happen to his profits in the future. What do you expect will happen to profits in this industry as we go to long run and why? What is the key assumption of monopolistic competition that gives you your conclusion?What term refers to companies shaping their actions based on what their competitors do? O allocative efficiency long run equilibrium mutual interdependence productive efficiencyA monopolistically competitive firm has a total cost curve represented by TC = 250+ 3Q + Q² and a marginal cost represented by MC = 3 + 2Q. The firm faces the demand curve P = 99 - 2Q. What do we expect to happen in the long run? O Firms will exit the industry, but if this firm remains its profits will increase. O The firm will earn an economic profit in the long run. O Additional firms will enter the industry and this firm's profit will decrease. O This firm will sell its product at marginal cost. MacBook A esc 800 F1 F2 F3 F4 2$ 4 W R T Y ock G %24 2
- Economics Consider a Cournot competition with N identical firms, each having MC=0 and FC=0. Inverse demand is P=10-Q. Which of the following is true? (several answers are allowed, wrong answers are penalized!). Select one or more: a. As N increases total market quantity increases b. As N increases profit per firm decreases C. As N inreases the sum of all firms profits remains unchanged d. As N increases market price decreases Consider a Cournot competition with N identical firms, each having MC=0 and FC=0. Inverse demand is P=10-Q. Which of the following is true? (several answers are allowed, wrong answers are penalized!). Select one or more: a. As N increases total market quantity increases b. As N increases profit per firm decreases c. As N inreases the sum of all firms profits remains unchanged d. As N increases market price decreasesDue to an increase in the price of a competitor's product, the demand for a firm's product increases sharply. How is this most likely to affect the firm's marginal revenue and marginal cost? OA. Both marginal revenue and marginal cost will increase. OB. Marginal revenue will increase but marginal cost will decrease. OC. Marginal revenue will increase but marginal cost will not change. OD. Both marginal revenue and marginal cost will not be affected. OE Marginal revenue will not change but marginal cost will increase.Which of the following is a characteristic of monopolistic competition? O few sellers O homogeneous product zero long-run profits O barriers to entry OO
