Do you agree with the following statement and explain why! "A firm that operates in a perfectly competitive market will earn long run economic profit by process innovation".

Q: $212 ATC 136 120 110 96 60 If the monopolist in Exhibit 3 engages in perfect price discrimination,…

A: In a monopoly market, monopolist can practice price discrimination in different ways, according to…

Q: How can GM maintain control of its production in the China market?

A: Production refers to the act of manufacturing, harvesting, or constructing anything, as well as the…

Q: There is equilibrium in the purely competitive market for oranges, and the optimal amount of oranges…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: Refer to the diagram, representing Slippery Slope Oil Company. What is the user cost of extracting a…

A: Given the price per Barrel = $70 Given the EC when quantity zero = $10

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A: A tally sheet is as follows :

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A: An information Systems Specialist is liable for supporting and developing the information system of…

Q: For small, open economies that export and import a large volume of goods and services, a fixed…

A: In the international market, exchange rate are determine under fixed or flexible exchange rate…

Q: The simple Heckscher-Ohlin matches the empirical evidence on trade patterns between economies well.…

A: The measure that depicts the exchange of goods and services between entities and individuals in…

Q: You borrow money from a bank to invest in the stock market. The mean return of your portfolio (X) is…

A: * SOLUTION :-    (2)

Q: Under a new company employees savings plan, an employee will pay 250 at the beginning of each month…

A: Interest is the sum of money that accumulates as a percentage of the principal amount over a certain…

Q: Suppose that fixed costs for a firm in the automobile industry (start-up costs of facto- ries,…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: When comparing two firms operating as a cartel/colluding and two firms competing in Cournot…

A: Cournot competition is an economic model. It is for describing an industrial structure in which…

Q: Table 18-7 Number of Marginal Product Value of Marginal Marginal Workers Output of Labor Product of…

A: Marginal product of labor refers to change in total product with change in labour input.

Q: Given the following: C = 150 + 0.25Y4 = 150 + 0.25(Y – T) I = 300 G = 450 T = 250 Solve for the…

A: "In macroeconomics, closed economy-equilibrium will occur at a point where total output (Y) equates…

Q: Suppose firms are optimistic about the outlook of the economy and they decide to increase…

A: The equilibrium is established where the aggregate demand and aggregate supply are equal.  The…

Q: The current account balance is equivalent to an excess of domestic expenditure (C + I+ G) over gross…

A: When the government is short, it spends more thàn it taxes. Can borrow from in public, which may…

Q: The characteristic of money as a store of value implies: a. Money will remain valuable from one day…

A: There are four functions of money: medium of exchange,  store of value, standard of deferred…

Q: Suppose the U.S. has a closed economy with GDP (Y) equal to $20.0 trillion, consumption (C) equal to…

A: We have given components of GDP of an closed economy.

Q: An automotive assembly factory is purchasing a new $350,000 machine to help speed up its assembly…

A: To compute the PW & the IRR we take following steps : # Compute Cash flow which requires…

Q: MC MC ATC ATC Quantity MR (A) Quantity MR (B) MC MC ATC ATC D= MR Quantity (C) Quantity (D) MR 25.…

A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost and price is…

Q: Suppose an unvaccinated man Tom would get $10 of private benefit out of a flu shot. The flu shot…

A: Herd immunity from flu shot is an example of positive externality where third party gets the benefit…

Q: EP Qp and Qs are quantity demanded and supplied of perfume, res t is the equilibrium price and…

A: Whenever the worth of elasticity is more prominent than 1.0, it proposes that the demand for a long…

Q: As per the World Bank, Philippine Real GDP (constant 2015 prices) was at around 396,220,000,000 USD…

A: "GDP deflator for any year is obtained by multiplying 100 by the ratio of nominal GDP of that year…

Q: An existing machine in a factory has an annual maintenance cost of 40,000 pesos. A new and more…

A: Here we calculate the Net present value of the machine and conclude that is new machine good for…

Q: Read the article and answer quesion 3. If demand for cellphones is increasing so much, why aren't…

A: Hi, we are providing solution only for question 3, since you have specifically asked for the same.…

Q: 2, 2 6,1 1,1 Player 1 B 1,6 5,5 1,1 C 1,1 1,1 4,4 Consider the simultaneous move game represented in…

A: The subgame perfect Nash equilibrium, or SPNE, is defined as the Nash equilibrium of all the…

Q: A firm operating in a perfectly competitive industry will continue to operate in the short run but…

A: For Perfect competition, we know that P = MC AND P = MR

Q: A housecleaning company receives $25 for each house cleaned. The table below gives the relation…

A: A firm will hire labor as long as wage rate is equal to value of marginal product of labor.

Q: Significance level or ,is the probability of rejecting the null hypothesis when it is true. Select…

A: When talking significance level test, it can be seen that a researcher may sometimes provide wrong…

Q: Consider four consumers Lisa, Sally, George, and Katherine. Their observed purchasing behaviors for…

A: Budget constraint shows the combinations of goods that can be purchased with given prices and…

Q: 1) The value function is an essential element of Prospect Theory. Describe the key features of the…

A: The prospect theory says that investors value gains and losses differently, inserting a lot of…

Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1. Output 1 2 4 7…

A: Disclaimer:- as you posted multipart questions we are supposed to solve the first 3 questions only…

Q: Total Cost Variable Cost Quantity (dollars) (dollars) $800 $0 100 1,260 200 1,660 300 2,560 400…

A: In a perfectly competitive market, firms produce identical goods. Price is constant and equal to…

Q: The soft-budget constraint manifested itself in

A: Since you have posted multiple questions, we will answer the first question for you.  Soft Budget…

Q: You are managing a competitive corn farm that faces random demand. You must decide how much corn to…

A: A competitive producer is optimizes its profit and output at the level where marginal cost is equal…

Q: Which of the fallowing statements are correct? Pick two correct answers. Deposits are create. O When…

A: When commercial bank makes loans, it creates additional account of the borrower and deposit loan…

Q: 7. Simple economies can be described in terms of three major economic flows. These are: a. income,…

A: The economics as a study is based upon the basic idea that the resources which are present with the…

Q: Imagine that government decides to increase the inflation target from its curren 3-6% to 7-10%. As a…

A: Inflation targeting is a monetary policy that involves changing monetary policy to achieve a…

Q: Figure 34-3 (a) The Money Market (b) The Aggregate Demand Curve MS MD, MD. AD Y: Y, QUANTITY OF…

A: Aggregate demand slopes downward showing inverse relationship between price and quantity of output…

Q: A consumer has utility u(1) = Vī and income $1,000. When sick, the consumer must go to the doctor,…

A: U = I0.5  Income = $1,000 Visiting the doctor without insurance = $400 Probability of getting sick…

Q: What is Lerner index? How is it calculated? What does it calculated outcome tell us?

A: In economics, a Lerner index is a tool that helps to measure the market power of a firm. This was…

Q: The accompanying table gives cost data for a firm that is selling in a purely competitive market. If…

A: In perfectly competitive market, price is constant at all levels of output so it is equal to…

Q: Problem 28-07 Suppose a French bottle of champagne costs 20.5 euros. Instructions: Enter your…

A: The price of the domestic currency in relation to another currency is known as the foreign exchange…

Q: A Polish company(A), which had its place of business in Krakow Poland sold a set of 80 steel girders…

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Q: Samsung Electronics is considering a product expansion of their Galaxy S Series. Two alternatives…

A: The correct answer is given in the second step.

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: A person purchased a new car for $26,200 and financed the entire amount. Suppose that the person can…

A: Given,  Purchsed car : $26,200Afford to pay $200 per monthRate of interest : 8%

Q: Essay: How important voting is for youth?

A: It is important for the youth to vote because for us we can see around the world that there is so…

Q: Which of the following components is NOT included in the calcula GDP using the expenditures…

A: GDP measures the total value of goods and services purchased in an economy during a specific period…

Q: Consider a consumer whose preferences are represented by a utility function u(x, y) = a0.5y5 Are…

A: The utility function can be defined as the measure of a group of goods and services preferred by…