The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=376+91q+q^2 and Marginal Cost curve MC=[b]+2q. Market demand is Q=695-2P. What is the Average Total Cost if the firm produces 37 units?
Q: How does your trade area compare to the Toronto average for those with a post secondary education le...
A: In the ranking variable in Canada it is the trading area that has grown in the demand of the adults...
Q: RUE OR FALSE 1. The volume of our money is being regulated by the government and subject to the app...
A: 1. False: The given statement is false because the money supply in the economy is regulated by the c...
Q: Energy expenditures are: Roughly 90% of the economy in much of the world including the US. Roughly 5...
A: Energy expenditure Energy expenditure refers to the amount of money used in the production of energy...
Q: Briefly explain and graphically illustrate the property of diminishing margincal rate of substitutio...
A: The willingness of a consumer to substitute one good for another as long as the new good is equally ...
Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new ...
A: According to the economist investment is such a concept which focuses on the goods production in ord...
Q: Private Good. In the table below are five individual demand schedules for ECONOBREAD, which is produ...
A:
Q: Given the Input-output matrix Industry Oil Final Demand Industry Health 240 120 120 120 Housing 144 ...
A: Following are the demand and input-output combinations which are provided -
Q: QUESTION 4 Suppose the real GDP in a fictional economy currently equals to 160 million USD, the pote...
A: According to the above mentioned question we have:- Equilibrium level of GDP = 160 million Potential...
Q: After several years house rental, you decide that you want to pay for your dream house in cash. Not ...
A: Given, Value of the project= P 6,000,000 Monthly saving= P 35000 Time period...
Q: In the context of the monetary approach to the determination of the exchange rate, what is the effec...
A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison t...
Q: What are the consequences of reduced publicfunding?
A: Public funds are collected through the public by means of taxes, interests, fees, etc. These funds a...
Q: When studying pollution and the environment, economists O A) emphasize costs and benefits. B) attemp...
A: Pollution is treated as a negative externality in economics. Negative externality means that it is a...
Q: I got a practice test question I dont understand in my economics class. 2. How would you show positi...
A: The aggregate supply curve shows that total quantities of goods and services are one to one directly...
Q: Suppose real GDP is constant. If the government's fiscal policy objective is to keep the size of the...
A: Here, it is given that the economy has constant real GDP and government wants to maintain the size o...
Q: I have four pairs of socks to be hung out side by side on a straight clothes line. The socks in each...
A: The correct option is D. It is assumed that socks of the same colour are indistinguishable. The numb...
Q: With the inflation rate on the vertical axis and output on the horizontal axis, the long run aggrega...
A: The long-run aggregate supply curve is vertical because output is independent of the inflation rate....
Q: Identify the NonPrice determinants of supply in the dentistry field. (per factor)
A: The supply curve shows the direct relationship between two variables that are price and quantity sup...
Q: Suppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost is constant and equal ...
A: MARKET DEMAND: Market demand is the total amount of goods and services that all consumers are willin...
Q: Suppose that books are a normal good. If consumers get richer what will happen to the price and quan...
A: Normal goods have positive income elasticity of demand, so when the income of consumer rises, the de...
Q: Externalities A) can be either benefits or costs.
A: Externalities Externalities are generally the consequences of the action of a producer to nearby par...
Q: Q1: A contract was transferred for a period of 7 months at a total cost of $200,000 as in the table ...
A: Introduction The cost of the contract is 2,00,000. Total duration of the contract is 7 months. Let s...
Q: a) Consider two countries that have the same parameters and exogenous variables (i.e. they have the ...
A:
Q: Marginal cost-benefit analysis and the goal of the firm Wendy Winter needs to determine whether the ...
A: Calculating Wendy's decision:
Q: he market demand for a product is Q = 2500 – 400P - 0.11, where P i ne price per unit of a product, ...
A: The marginal revenue refers to the change in the total revenue one additional unit of output is sold...
Q: A monopolist serves a market with five potential buyers, each of whom would buy at most one piece o...
A: Quantity 1 2 3 4 5 VC 40 90 150 220 300 P 120 110 100 90 80 TR 120 220 300 360 400 MR 120 10...
Q: When you take your first job, you decide to start saving right away for your retirement. You put P 5...
A: Given, monthly payment= P 5000 Interest rate= 8% Time period= 35 years
Q: If the firm is maximizing profits, total cost is represented by the area
A: Here the supply curve is the curve depicting how much production of manufacturing goods is being don...
Q: Show that if a firm is a natural monopoly, a government policy that forces marginal cost pricing wil...
A: Answer: Natural Monopoly: When the cost of providing a good or service is so large (especially fixed...
Q: Economists
A: TC(total cost) is the sum of TVC(total variable cost) and TFC(total fixed cost). AC(average cost) is...
Q: Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the dema...
A: 4. When there is decrease in quantity supplied and the supply curve slopes upward with respect to pr...
Q: Collective rights is a concept that prioritizes the welfare of society over: Group of answer cho...
A: Collective rights is held by a group of people rather than the individuals of the group. So it prio...
Q: Why is the aggregate supply curve completely vertical in the long run? A. Short-run business cycles ...
A: Aggregate supply curve shows different combinations of price and output supplied in the economy.
Q: Question 39 Consider the table below. The addition of worker number is when the firm first experienc...
A: Answer 39) The figure attached below computes the total product at labor 3 by adding total product a...
Q: If a monopoly firm sells a product with price $100, whose marginal cost is $30, what is the price/ m...
A: Please find the answer below.
Q: 12. If _____ is rising, it likely means that the economy is shrinking. A. consumer spending B. nomin...
A: GDP is the value of final goods and services produced in the economy within a given period of time
Q: The diagram below shows a monopolist’s marginal cost schedule and the demand curve. Find and depict ...
A: we have:
Q: 15.) Consider the market for microphones. What will happen to the equilibrium price and quantity in ...
A: Given : Due to pandemic , use of microphones is pushed for taking digital meetings rather than havin...
Q: A price floor for commodity crops would always make farmers better off. True or false?
A: "A price floor is referred to as a limit on how low price can be charged for a commodity."
Q: Who pays the federal unemployment tax and the state unemployment tax
A: The State Unemployment Tax Act, or SUTA, refers to state-level taxes; however, the Federal Unemploym...
Q: Demand function: Qp = 270 – 5P Supply function: Qs = -50 + 5P Submit answers in two decimal places i...
A: Price elasticity of demand The Price elasticity of demand is the reaction of demand due to change in...
Q: Suppose that production of steel in the United States involves negative externalities. Now suppose t...
A: Total social cost Total social cost refers to the is the total of the private costs coming from a tr...
Q: How are public colleges and universities respondingto budget cuts?
A: Meaning of Government Debt: The term government debt refers to the situation under which the gover...
Q: substitution effect: Suppose the price of sausage doubles, the substitution effect will lead her to ...
A: Consumers choose the goods according to the price and their budget constraint, if the price of goods...
Q: Lucy's company has just promoted her to a managerial position and given her a new office. She is ver...
A: U=sqrt(XY) U1=4 U2=6 U=sqrt(XY) Where, X is for carpets and Y is for the paintings. when U=4 and U...
Q: If steak is a normal good, when incomes rise, the equilibrium price will _____, and the equilibrium ...
A: A normal good is that good whose demand increases when there is increase in the income of the consum...
Q: 1. Suppose that you have an income of $10 to spend on sticky hands and gumballs. Both cost $1.00. ...
A: According to the question, income is $10 which is spent on gumballs (G) and sticky hands (S). Price ...
Q: He described economics as a science of material welfare
A: To find : Who describes economics as science of material welfare
Q: The consumer gets positive benefits from consuming bread (B) and cake (K). Consumer utility is as fo...
A: MRS = MUBMUK = 20*2 B K20 B2=2KB Price ratio: pBpK = 200400 = 12 Budget Constraint: pB*B + pK *K = ...
Q: FIGURE 13.2 Efficient Sustainable Yield for a Fishery Benefits and Costs of Fishing Effort (dollars)...
A: 1. For a given fish stock, the maximum sustainable yield (MSY) refers to the highest annual catch th...
Q: Explain how the push and pull factors can affect the purchasing process.
A: Push factors are important because they help predict demand, allowing you to know future product and...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=215+58q+q^2 and Marginal Cost curve MC=58+2q. Market demand is Q=744-2P. What is the Average Variable Cost if the firm produces 17 units?Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q². a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why?Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q^2. a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why? *Please show all work*
- A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profitA firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profitYour company's cost function (monthly) can be defined as; TC = cost per unit (AC) × quantity supplied (Q). If the cost per unit (average cost) for your firm is AC = (800/Q) – 10 +2Q: a. What is the total cost function for your firm in terms of Q? b. How would you interpret the intercept term in this function? c. What is the marginal cost function for your firm? d. At what level of output (Q) is AC minimized?
- A major software developer has estimated the demand for its new personal finance software package to be Q=1,000,000P-2 while the total cost of the package is C = 10,000+ 25Q. If this firm wishes to maximize profit, what percentage markup should it place on this product where percentage markup is defined as 100*(sale price - marginal cost)/marginal cost? 4. a. b. C. d. e. ANS: 90% 100% 20% 40% 250%Randall Cars repair Factory has the total Cost Function. TC (Q) = 4₁/Q + 26/Q² +30 where Q stands for the number of hours of repair, if the market price For Car repair is per hour, what the Optimal hours of repair that randall will do (round a decimal) $100The cost function of competitive firm is TC = 20 + 5Q2. The product's market price is 30 AZN. Please find the firm's profit.
- The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?The cost function for Acme Laundry is C(q)=50+30q+q2, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p?The market for high-quality matsutake mushrooms is dependent on the weather. If the weather is good, one kilogram matsutake mushroom can be sold for $30. In bad weather it sells for only $20 per kilogram. Matsutake mushrooms produced one week will not be kept until the next week, A small matsutake mushrooms producer has a cost function given by C = 0.5q^2 + 5q + 100 where q is weekly matsutake mushrooms production. Production decisions must be made before the weather (and the price of matsutake mushrooms) is known, but it is known that good weather and bad weather each occur with a probability of O.5. How much matsutake mushrooms should this firm produce if it wishes to maximize the expected value of its profits?