Due to , a natural monopoly's average cost is as its output rises. a Economies of scale; increasing b Economies of scale; decreasing c Diseconomies of scale; increasing d Diseconomies of scale; decreasing
Q: Md/P) = 2×Yb(r + πe)-a where 0 < b < 1 and 0 < a < 1. a) Use the real money demand above to…
A: Q E4. The Quantity Theory of Money (QTM) states that the money supply is directly proportional to…
Q: A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/2 1/4 The…
A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…
Q: business sells items according to the following Cost and Revenue functions:…
A: * SOLUTION :-
Q: 3. Does the following figure depict a long-run or short-run scenario? Explain. 0 me atc avc I
A: In short run, there is atleast one input is fixed and others are variable. This means there is…
Q: Consider the above table. What is the marginal product of the 2nd worker? O 18 O 20 O 40 O 22
A: The total product of labour is the sum of the prices of all the commodities and services generated…
Q: The law of diminishing marginal utility states that.. price must be lowered to induce firms to…
A: Utility refers to the satisfaction derived from the consumption of good. The marginal utility shows…
Q: The Logistic (Logit) model has a qualitative explanatory variable and quantitative response…
A: The logistic (logit) model is used to predict the probability of an event occurring so this model is…
Q: 4. If money supply rose by $200 billion and, velocity is 2, and the real GDP is $300 billion, what…
A: Money Supply rose by $200 billion Velocity is 2 Real GDP = 300 billion
Q: What is the theory of country size? How is country size determined? How does country size affect…
A: International trade is the exchange or trade of products and services between various countries.…
Q: 12. Which of the following statements is correct? a. An increases in the level of autonomous…
A:
Q: Welcome to Nellyville! The table below contains statistics you can use to calculate the various…
A: Unemployment happens when somebody is willing and able to work yet doesn't have a paid job. The…
Q: If Snapface prices high, Instashot will make more profit if it chooses a price. chooses a If…
A: In a duopoly, two firms compete with each other in the market. The firms move as per their…
Q: 3.3 Simple Expenditure Minimization (* Suppose you are trying to minimize your expenditures E = 4x +…
A: Expenditure minimization means that minimum money is required to achieve a given utility level and…
Q: The lower the price in a market, the higher the consumer surplus in that market. O True False
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: QUESTION 5 The price in an oligopoly market when companies compete is: O a Higher than in perfect…
A: Oligopoly market is a market form wherein there are a few firms only engaged in the production of…
Q: Which line represents better terms of trade? (Slide: Improvements in terms of trade) A. PPB B. CP1…
A: The terms of trade is an international concept that deals with the exports and the imports of a…
Q: What is green economics. Explain in more than 150 words.
A: A approach of economics known as "green economics" aims to simultaneously satisfy the needs of…
Q: Estimate the cost in 2018 of a 950-horsepower steam turbine air compressor if a 200-horsepower unit…
A: The production of a cost estimate for a new project is based on the construction cost data from…
Q: Consider a Solow economy with a production function F (K, L) = Kª L¹-ª, where a = = 0.2. The labor…
A: Solow model is a growth model in which the major drivers of growth are savings and investment. It…
Q: 0. which of the following would most likely have a price elasticity coefficient less than 1 !
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Discuss how differences in discount rates or in ability across workers lead to differences in…
A: The term "discount rate" refers to the rate of interest used to calculate an investment's "net…
Q: Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs…
A: In the short run, a firm should shut down production if revenue is lower than variable costs. It…
Q: QUESTION 19 All partners in a General partnership are liable for any debts, only to the extent of…
A: A general partnership is a type of business organization when two or more people concur to divide…
Q: Which of the following policies will shift the IS curve to the right a) An increase in the…
A: The IS curve depicts all income (Y) and real interest rate (r) pairings that result in an…
Q: Question 14 The diagram below shows the marginal cost of abatement for each of two firms, A and B.…
A: An E(externality )is a cost that is not borne by the person who generated it. The externality can be…
Q: QUESTION 4 In a duopoly, if the firms have agreed to jointly maximize profits, then each firm can…
A: When two companies jointly control all or almost all of the market for a certain commodity or…
Q: A farmer can either invest in irrigation for their farm or not. There's a 30% chance that they will…
A: The game in an extensive form refers to the specification of a game in the study of game that allows…
Q: Define the term "gini index" in the context of economics.
A: A population's income distribution is measured by the Gini index, often known as the Gini…
Q: Consider trade relations between Canada and Mexico. Assume that the leaders of the two countries…
A: Nash equilibrium refers to the best course of action of a player provided the strategy of rival firm…
Q: After having started a highly unpopular war in Europe, the president of Leninslavia can only sell…
A: Price discrimination refers to the situation when the seller of a good is able to sell the same…
Q: Find Alonso's Marshallian demands and indirect utility function gc (Pc, Pp, I) gc (Pc, Pp, I) gc…
A: Marshallian demands and indirect utility both are function of prices (pc, pc) and income (I).
Q: Suppose a monopolist faces the demand curve and cost curves shown below. P6 Dollars à d AP 8 FIGURE…
A: A monopolist will produce where MR = MC. MR is the marginal revenue. MC is the marginal cost.…
Q: QUESTION 21 When a product becomes more fashionable, what does happen in the market? a. Total…
A: If a product becomes more fashionable, it will encourage consumers to buy more of it due to which…
Q: Banks in the country of Mistania have a total of $17000 in required reserves and $276000 in…
A: Reserve are the part of deposit that is kept out of deposit by the bank. Reserve is the product of…
Q: What is meant by the positive economics. Describe in detail.
A: The area of economics concerned with positive statement is known as positive economics (as…
Q: The benefits received principle of taxation asserts that Select one: a. Society at large should pay…
A: Tax refers is a compulsory financial charge levied by the government. It is used to fund government…
Q: Hi, where is P comes from? In the question, it says profit = ei - ci, how does pi*ei makes sense?
A: Now first we have to know the term profit. Profit is actually the difference between total revenue…
Q: Listed 40 name of multinational company in Malaysia.
A: A multinational company is known to be as a company which has its office located into different…
Q: Consider the following balance sheet for Watchover Savings Incorporated (in millions): Assets…
A: Interest on loans and interest on deposits are the main sources of income and expenses for banks,…
Q: Use Cramer's rule to find the value for x which satisfies the following simultaneous equations: 7x -…
A: As given equations 7x - 3y = 4 2x +5y =7
Q: A B D F OD+E +F B+D+F E A+B+D S The above graph represents a market for apples. What is the producer…
A: Producer surplus is the area below price and above supply curve. Consumer surplus is the area below…
Q: What is/are the Nash Equilibrium(s) in this game? 1. (5,5) only. 2. (7,7) only. 3. both (5,5) and…
A: Nash equilibrium is the equilibrium point in which each player chooses its optimal strategy in…
Q: Under a fixed exchange rate, suppose that the economy initially stays at the long-run equilibrium of…
A: Since you have asked multiple questions, we are answering only the first question. To get answers to…
Q: A monopolist supplies an identical good in both countries. The inverse demand curve of Country A is…
A: Given, Inverse Demand Curve for Country A: P=12-Q Inverse Demand Curve for Country B: P=22-Q…
Q: Use the table below to answer question. The table shows the demand schedule for tickets to watch…
A: A perfect competition is by far the most competitive business possible, with no monopolies,…
Q: Suppose the Fed decreases the discount rate. How does this policy affect the money supply? OIncrease…
A: Fed uses different tools to change the money supply in an economy. The change in money supply…
Q: Mary O’Leary’s company ships fine wool garments from County Cork, Ireland. Five years ago she…
A: EUAC refers to the equivalent uniform annual cost. It is the annual cost incurred by the owner of…
Q: Possibility A B C D Entertainment (E) (units) 90 60 30 0 Consider the above PPF. What is the…
A: In economics, the opportunity cost is the worth of what you have to give up in order to choose…
Q: Ma3. Please give only typed answer. micro economics 1)U=2x+2y where px/py=1/4 use indirect…
A: ***Since the student has posted multiple questions, the expert is required to solve the first…
Q: Assume a firm has the following production function: q(L, K) = L¹1/2. K¹/2 Additionally, assume…
A: We have to satisfy first order condition for profit maximization
Step by step
Solved in 2 steps
- The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 a.This cost structure is an example of natural monopoly. b.For the first 300 units of output, this firm has diseconomies of scale. c.For output levels between 300 and 400, the firm has constant returns to scale. d.For output levels greater than 400, the firm has economies of scale. which is the answer?Over a recent family dinner, your Aunt Trudy expresses her disdain for price discriminating monopoly businesses, to which you, having taken some economics reply, "A perfect price discriminating monopoly may convert all of the consumer surplus to monopoly profit, but at least it produces O A. more output than a competitive industry would produce. OB. the same output that a competitive industry would produce. C. at the minimum of its average total cost (ATC) curve. D. where its marginal cost (MC) curve is still declining.Why does a monopoly arise? O because of diseconomies of scale because entry to an industry is blocked because of elastic demand because firms want to maximize profits
- The maintenance of a monopoly requires that a firm prevent the entry of potential competitors. Inaddition to acquiring a patent on a product, what strategies might a firm use to prevent entry? Explain and show graph.QUESTION 6 Economies of scale are achieved by producing larger quantities Oproducing smaller quantities producing in a country with a larger economy. Obecoming a monopolyWhich of the following is true of a natural monopoly? * It experiences diseconomies of scale. ATC is lower if there is a single firm in the market. It occurs in a market that relies on natural resources for its production. There are decreasing returns to scale in the industry. O The government must provide the good or service to achieve efficiency.
- Price (Dollars per Garment) 7 D E 5 АС-МC Demand Marginal Revenue 20 Garments cleaned per year (millions) The long run average and marginal cost of dry-cleaning services is $5, as shown in the graph. Given the demand curve and the marginal revenue curve shown in the graph, which of the following is true? Select one: O . If the industry were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $7 per garment. Ob. If the industry were perfectly competitive, 10 million garments would be cleaned each year. If the market were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $5 per garment and monopoly economic profit would be zero. O d. If the industry were perfectly competitive then the long-run equilibrium price of dry-cleaning services would be $7 per garment.I am learning about pure competition in short and long run and pure monopoly in intro to microeconomics. How would a pizzeria in a densely populated area with 20 to 50 competitors thrive in a pure short competition market compared to a pure long competition market? As well as in a pure monopoly market.When a well-known musician applies copyright ownership of his musical creations, he creates a monopoly by constraining unit production costs. demand for the product. O entry into the market. the number of inventors
- A natural monopoly refers to a monopoly that is defended from direct competition by a. Control over a vital input b. A government franchise c. A patent or copyright d. Economies of scale over a broad range of outputMicrosoft Windows 8 to Go on Sale in October. Microsoft announced that its Windows 8 operating system will be released in October 2012, three years after Windows 7 went public. Windows 8 will be available in 109 languages across 231 markets worldwide a. Is Microsoft a natural monopoly or a legal monopoly? b. Does Microsoft price discriminate or do the different prices of Windows reflect cost differences? c. Sketch a demand curve for Windows, Microsoft’s marginal cost curve, and the distribution of the total surplus between consumers and Microsoft.Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and produce 6 units in the long run. C. Comcast should shut down in the short run and in the long run. O D. Comcast should produce 6 units in the short run and in the long run. O E. None of the above. 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost - 21 24 27 30 33 39 36 Suppose the local government imposes a $73 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $45.) Suppose that the flat per-month tax is replaced with a tax on the firm of $12 per cable subscriber. (Assume that Comcast will sell…
