fa perfectly competitive firm finds that the price exceeds its ATC, then the firm A) is incurring an economic loss. B) is making zero economic profit. J C) will lower its price to increase its economic profit. D) is making an economic profit.
Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) In the above diagram, marginal cost…
A: Marginal cost is defined as the additional cost incurred on producing an extra unit of goods and…
Q: An engineer wishes to set up a special fund by making uniform semiannual start-of-period (period 0)…
A: Calculate the future value of withdrawals Future value of annuity = Annuity/r*((1+r)^n-1)…
Q: Supply side economics says we should talk about "the economy" because can't explain incentives to…
A: The above question is about "Reaganomics" and the term Reaganomics states the economic policies of…
Q: D9) Some believe communities can solve complex problems without other actors playing an active role.…
A: Important note: Since the question clearly asks to give examples from the course work it would be…
Q: Q1) Would you expect the short-run marginal propensity to consume to be different between farmers…
A: The marginal propensity to consume (MPC) is a term used in economics to describe how much a boost in…
Q: Suppose X is an inferior good and the price of X rises Select one: O a The IE will be larger than…
A: Whenever price falls, there will be both substitution and income effect due to price fall.
Q: Expenses that do not require a monetary outlay but instead reflect the dollar value of benefits…
A: Accounting cost:- Any action's accounting cost can be explained as the expense that is…
Q: Problem #2 Suppose the Demand schedule of Rice was been revised during February 2021. Graph the…
A: We have given Point Price (Peso) Quantity demanded (kg) ( January 2021) A 123.5 11 B 114.5…
Q: A farmer sells $150,000 of apples to individuals who take them home to eat and $75,000 of apples to…
A: A farmer is selling the apples to two individuals one is final consumer and one is the producer.
Q: The diagram below shows a natural monopoly. If the firm is unregulated, how much deadweight loss…
A: In monopoly, profit is maximised at a point where marginal revenue is equal to marginal cost and…
Q: 97) Refer to the attached Table 6. As long as Matthew and Anna operate as a profit-maximizing…
A:
Q: Assume that you buy a l-year, 150,000-peso Philippine bond that pays 8 percent when the exchange…
A: The exchange rate is 1 Canadian dollar for 40 Pesos. You buy a 1- year,150,000 pesos Phillippine…
Q: The demand curve for wheat is Q=140−10p Supply curve is Q=10p. Equilibrium quantity is 70.…
A: Price ceiling is the maximum price that can be charged. It is efficient when it is set below the…
Q: Kermit is setting up an education fund for his nephew Robin, who will be attending college 18 years…
A: After 18yeara the Robin will be attending tye College so the total cost of college for 4years and…
Q: Suppose that you observe that the wages for accountants in your town have gone up and that the…
A: Equilibrium refers to situation in which market supply and demand are balanced, resulting in steady…
Q: Drybar, a hair salon, faces a weekly demand for blowouts equal to qp = 1120 - 20P. %3D The salon has…
A: Producer surplus is the area above the MC and below the price.
Q: Suppose there is a country importing tires. The government of that country imposes a tariff on…
A: A tariff basically refers to a charge levied by one nation on products and services imported from…
Q: 1. Consider the Competitive banking model of Freixas and Rochet Section 3.1. where Banks' profit…
A: Cost Function refers to the relationship between the various inputs and how they constitute with…
Q: A perfectly competitive firm will shut down when the price is just below the minimum point on the A)…
A: A competitive firm produces output where P= MC but at this output firm may earn profit or loss.
Q: A (0.20) B (0.50) 5 C (0.30)
A: The decision tree is used to make the strategic decisions. The probabilities are assigned to…
Q: One day, Sam and Ryan play odds/evens to see who gets the last doughnut. On command, they each…
A: Disclaimer: Since it is a multiple part question, I am providing you with the answer to the first…
Q: The measurement of the efficiency of investment in inventory is referred to as: Question 6 options:…
A: PLEASE FIND THE ANSWER BELOW.
Q: What determines aggregate supply in the short run and what determines it in the long run?
A: Aggregate supply refers to the whole quantity of products and services generated within an economy…
Q: 3. Monopolistic Competition i. Discuss the main characteristics of the monopolistically competitive…
A: The monopolistic market is characterized by the many firms and these firms produce the…
Q: Both Tom and jerry work eighht hours a day. Tom can produce six baskets of goods per hour while…
A: Both Tom and Jerry work eight hours a day. Tom can produce six baskets of goods per hour while Jerry…
Q: If a bushel of wheat costs $10 in the United States and 5 pounds in the United Kingdom, the long-run…
A: Since you have posted Multiple questions, as per the battle by guidelines we can solve only one…
Q: Given the total cost function TC - 2,000 + 2*Q. when output is 1,000 units average total costs are.…
A: The formulas for cost are: 1. Total Cost = Fixed Cost + Variable Cost 2. Average Total Cost = Total…
Q: Economics Question
A: This is the diagram of externality.
Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) n the above diagram, marginal cost…
A: The "law of variable proportions" causes the above marginal cost curve to be U-shaped in the short…
Q: Consider two completely identical homes, one located in France and one located in England. In…
A: The Real Exchange Rate (RER) represents the nominal exchange rate adjusted by the relative price of…
Q: In which market structure do firms exist in very large numbers, each firm produ an identical…
A: In perfect competition and monopolistic competition, there are many firms and buyers. In a monopoly,…
Q: If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its…
A: Fixed cost is the cost that remains same at all levels of output. It does not depend on output.
Q: Economics Over the past decade, holiday gift cards have become increasingly popular at online…
A: The correct answer is given in the second step.
Q: Thinking of immigration, should nation-states relinquish responsibility for the social reproduction…
A: There are many reasons that will lead to the migration of labors from one place to another. Higher…
Q: 20,000 -90,000 50,000 -10,000 2 4 According to the rule of signs, there can be up to three |rate of…
A: *Answer: Given cash flow i=15%
Q: (a) Explain the difference between government spending and the government Purchases of goods and…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: When $100 is deposited in the banking system, it leads to maximum expansion in bank deposits of…
A: Here, given information is: Change in deposits: $100 Maximum change in money supply: $1,000 To…
Q: Revenue and cost (dollars per unit) MC AVC 50 ..... 40 10 10 20 30 40 50 Output (units per day) The…
A: For a competitive firm, price are given and it has to produce and sell the output at this given…
Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…
A: Answer is given below
Q: 11. If the cross-price elasticity between goods A and B is negative, we know the goods are:
A: Cross elasticity refers to the responsiveness of change in quantity demanded of one commodity due to…
Q: At what price and quantity is the point-price elasticity of Q=70-.4P -1? Please show algebraically
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…
Q: I need help with econ multiple hw questions asap! 101) Typically, as a firm hires additional…
A: (101). Marginal product of labour means the additional output a firm get by using an additional unit…
Q: According to the IMF, what are the world economic growth projections for 2013 and 2014?
A: World Economic Outlook is released by IMF that projects the global economic growth rate for…
Q: Describe the effect that higher income has on life expectancy in terms of relative length and…
A: Based on actuarial information, life expectancy is the statistical age at which a person is…
Q: New Classical economists believe in the: O Policy Incoherence Proposition O Policy Ineffectiveness…
A: The work of economists based at the Universities of Chicago and Minnesota, especially Robert Lucas…
Q: Short-Run Cost Question2: Lisa has a lawm-mowing business Lisa hires students at $40 a day to mow…
A: Given: Labor Total Product 0 0 1 20 2 44 3 70 4 94 5 114 6 120
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A:
Q: Demsetz argues that many market failure arguments are wrong because they ignore that real life is…
A: Economists look at a variety of issues known as "market failure" - conditions that, at the very…
Q: 2. Explain how capital flow and labor flow affect globalization
A: Answer -2 Capital flows have always been vital for improved global economic performance, but they…
Q: John's technology for producing apple pie (a) is represented by a = VL+2 where Lis labor. His…
A: Given information Production function a=L^0.5+2 Utility function U=2a-4L^2 Price of Apple=1
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You can tell a firm is operating in a market that is in long-run competitive equilibrium if a) economic profits are zero. b) economic profits are positive. c) accounting profits are zero. d) accounting profits are negative. e) economic profits are negative.If a perfectly competitive firm's average total cost is less than the price, then the firm A) incurs an economic loss. B) makes an economic profit. C) makes zero economic profit. D) makes either zero economic profit or an economic profit depending on whether the marginal revenue is equal to or greater than the price. E) None of these answers is correct because the relationship between the price and average total cost has nothing to do with the firm's profit.Find the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.
- Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output. If the marginal cost of producing the 10th unit is $14, to maximize its profit the firm should A) decrease its production. B) shut down. C) increase its production. D) increase the price it charges for its product. E) do nothing because it is already maximizing its profit.Calculate the amount of profit or loss made by this firm at the equilibrium output. State the type of profit.
- A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than marginal cost. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Average total cost will decrease. The quantity supplied by each firm will decrease. The total quantity supplied to the market will decrease. Marginal cost will decrease. The price of fertilizer will increase.If a perfectly competitive firm is producing an output level where average variable cost is equal to the marginal cost but the price is less than average variable cost, then in the short run the firm should Group of answer choices a) increase its price. b) decrease its price. c) increase its output. d) decrease its output. e) shut down. f) maintain its current level of output.
- The graph below gives marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm. Note that marginal revenue (MR) is not shown. Suppose the firm operates in a perfectly competitive market and acts to maximize its profit. which of the following is/are true? I. At a price of 1.5, the firm will shut down in the short-run. II. At a price of 0.5, the firm will shut down in the short-run. III. At a price of 2.5, the firm will make a positive economic profit. 7 MC АТС AVC 3 2 1 1 Quantity 2. 4. PriceJuan makes dining room chairs in a perfectly competitive industry. He is looking for economic advice and tells you the following data about his business. (Assume cost curves have their standard shapes.) Total revenue is $120,000, Total fixed costs are $100,000 Total variable costs are $110,000 Marginal cost is $200/unit Quantity produced is 600 units What will you suggest to Juan? A: Shut down immediately B: Do not shut down and increase production C: Do not shut down but decrease production D: Do not shut down and do not change the current production level.Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.