Q: The accompanying table shows the price and yearly quantity sold of souvenir t-shirts in the town of…
A: Price elasticity measures the responsiveness of quantity demanded with respect to change in price.…
Q: Consider the supply and demand curves for taxi rides in the attached graph. Even though the vertical…
A: From the given supply curve, at the price 1.83, the quantity supplied is 400 At the price of 2.50,…
Q: A Chinese high technology manufacturing firm has a production function of q=12L0.20 0.80 (based on…
A: Given Production function: q=12L0.2K0.8 ...... (1) Input prices are w=$2 and r=$8…
Q: Why do economists measure profit differently from accountants?
A: Accounting profit is a company’s net profit or income, which is revenue minus expenses. Economic…
Q: The Stolper-Samuelson theorem predicts that inequality will fall in developing economies. But the…
A: Stolper-Smuelson theorem predicts that inequality will fall in the developing economies. it argues…
Q: How will the price and output of a monopolist compare with perfect competition? The output of…
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: Give three definitions of market efficiency used by economists. How does efficiency fit into the…
A: Examples of common market failures include externalities, monopolies, information asymmetries, and…
Q: . Suppose labor supply can be described as ES = 0.1w - 2,000 where w is yearly sala a. How many…
A: The supply of labour is defined as the amount of labour, measured in person-hours, offered for hire…
Q: According to Smith, determined by ___ advantage in the production of a good, a nation would produce…
A: Demand and Supply Demand refers to the quantities of a commodity that the consumers are ready to…
Q: How much (if any) does each of the following transactions raise GDP? The Jones family sells its old…
A:
Q: 4. ) James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was…
A: Given The below table shows that James' income and CPI in year 2010, 2014 and 2017 Year Jame's…
Q: Two firms compete in selling homogeneous goods. They choose their output levels q1 and q2…
A: We know that market forces demand and supply lead to determination of price and quantity of goods.…
Q: If you want an investment to double in3 years, what interest rate must it earn? (Hint: Solve for the…
A: When talking about doubling of an investment it can be said that it can be done easily using…
Q: . What metrics can help analyze the economic environment of a country?
A: Economic environment The phrase "economic environment" relates to all the exterior economic elements…
Q: 5. What are economic benefits of using biodegradable plates? Explain.?.
A: We know that Biodegradable plates are substitutes for plastic plates. The reason biodegradable…
Q: 5. You borrowed $21,061.82 to finance the educational expenses for your senior year of college. The…
A: Given We borrowed $21,061.82 at the beginning of the senior year of college and this loan will be…
Q: The idea behind comparative advantage reflects the possibility that one party: O may be able to…
A: There are two concepts in international economics, one is absolute advantage and the other is…
Q: Construct the cash flow diagram to find the present worth in year 0 at an interest rate of 15% per…
A: Answer..
Q: Please describe the three elements of the theory of foreign economies
A: External economies of scale emerge when an industry as a whole expands more quickly and businesses…
Q: Question 2 Using supply and demand analysis, explain the effects of the following on the equilibrium…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What are the concepts, reasons and effects of market failure?
A: A market is a place where people get together to exchange goods and services. The two most frequent…
Q: explain why the total output of milk without specialization is 30?
A: Opportunity cost means the cost of next best alternative - To explain - This means in order to…
Q: Project Repair highways Build new highways Build a new bridge Build a new tunnel Expand existing…
A: Here, information regarding cost and benefit from various projects are given for the government to…
Q: 2. For each of the following, identify the full cost (meaning opportunity cost) involved: a. Aaron…
A: Opportunity Cost is the cost of a certain good or service that a consumer could have obtained in…
Q: Question 1 What are likely to be the effects on the DEMAND for leather if there is: a) A rise in the…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A company has established that the relationship between the sales price for one of its products and…
A: Given, p=76-0.1DFixed cost = $800 per monthvariable cost = $26 per unit
Q: Consider the demand function (a) Determine the inverse demand function. (b) Determine the revenue…
A:
Q: This time consider the production function F(L, K) = L³K³.
A: Production function shows the relationship between the output and inputs. The change in inputs bring…
Q: How do we reduce the national debt and stimulate business growth?
A: National debt: It refers to the amount which is owned by the government from its creditors. It is…
Q: cost of Country 1 is C1 = $2 and of country 2 it is C2 = $4. The total demand for oil is Q = 40-p…
A: The Nash equilibrium is a decision-making theorem within game theory that states a player can…
Q: Cross-price elasticity refers to changes in demand that happen due to changes in price of related…
A: Cross price elasticity is the change in demand for good X due to change in price of good Y.
Q: PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 0 MC 50 100 150 ATC MR 200 250…
A: A scenario called monopoly happens once there's only 1 marketer within the market. The monopoly case…
Q: A tobacco company is interested in hiring a salesperson to promote smoking cigarettes in nightclubs.…
A: An individual will consider the expected value of events when faced with uncertainty. They will also…
Q: 2. Assume a monopolist sells a product with a total cost function equal to TC = 400 + Q². The market…
A: Ans. 2. Uner the monopoly market The profit maximization level is where MR = MC…
Q: The explicit cost of production equals: a. economic cost minus opportunity cost. b. opportunity…
A: Explicit cost is the actual monetary expenditure incurred during the production process Implicit…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: To check which country has the comparative advantage in grain and tea, we have to calculate the…
Q: The law of increasing opportunity costs indicates that the opportunity cost of producing a good: O…
A: Opportunity Cost: The opportunity cost is the cost of an alternative that has been given up in order…
Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…
A: GDP refers to a monetary measure of the market value of all the final products and services…
Q: Businesses in Finland sell a wide variety of products with manufacturing, woods, telecommunications,…
A: A simply capitalist economy is likewise an unregulated/free market economy, economy, meaning the law…
Q: 7. "We are fast approaching the stage of the ultimate inversion: the stage where the government is…
A: A government is a corporate body with the power to enact social standards within a certain…
Q: Bryan is evaluating the pros and cons of taking economics virtually or in person. If he takes…
A: Opportunity cost can be defined as the potential benefits that is given up by an individual or a…
Q: Why is private property so essential to the market system's functioning, and why must property…
A: Any resource, asset, or capital that is owned by a non-governmental organization, a person, or a…
Q: 2. Suppose we have the following data to study if a country's per capita income (measured in…
A: Dependent variable : yi=per capita income Independent variable : xi= R&D spending (1)…
Q: The table below summarizes the productivity of workers in bread and shirt production in two parts of…
A: This table is actually showing the productivity of breads and shirts which is given here by using…
Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worthP25,000.00 with an expected…
A: Initial investment, C0 = P25,000 Required return, r = 6% Number of years, n = 8 years Let A be the…
Q: Consider the Keynesian consumption function Yt=B₁ + B₂x2+ + Et ( where y, is per capita consumption,…
A: Given Keynsian consumption function yt=β1+β2x2t+εt ...... (1) At…
Q: Assume that a firm buys all the parts that it puts into a computer for $1,200, pays its workers…
A: Value added is the income created by producing the good. It measures the value of real GDP.
Q: To pay for a farm, Axle has to make equal payments of P135,900.00 at the beginning of each six…
A: Interest rate is the sum charged over the initial deposit by the bank from the borrower. As far as…
Q: The basic difference between macroeconomics and microeconomics is: microeconomics concentrates on…
A: Microeconomics concentrates on monetary connections or economic issues or monetary issues at the…
Q: SESSION 1.2: SELF-ASSESSMENT EXERCISE 1. Briefly explain the use of graphs as a way to represent…
A: Graphs helps us to analyze the type of relationships between 2 variables. Between 2 economic…
#5
Step by step
Solved in 2 steps
- What is price discrimination? Explain how the theories of elasticity, if used, can help suppliers make decisions on product prices.Greentech- a high technological pharmaceutical company, has developed a clot-dissolving drug called TPA that will halt a heart attack in progress. TPA saves life, minimizes hospital stays, and reduces damage of the heart itself. It is priced at $ 2,200 per dose. What pricing approach does Greentech appear to be using? Is demand for this drug is likely to be elastic with price? Note: Please answer the question with points and exampleUrgent needed within 30minSuppose a movie theater determines it can charge different prices to patrons who go to weekday matinees and people who attend evening and weekend shows. The movie theater's goal is to increase total revenue. See Hint The price elasticity of demand for weekend and evening patrons is -0.50, and the price elasticity of demand for matinee moviegoers is -2.80. Based on the price elasticity of demand for each group of people, how should the movie theater adjust its prices? Choose one: O A. Raise the price for matinee moviegoers, and keep the price the same for weekend and evening patrons. O B. Lower the price for matinee moviegoers, and raise the price for weekend and evening patrons. O C. Lower the price for matinee moviegoers, and keep the price the same for weekend and evening patrons. O D. Raise the price for matinee moviegoers, and lower the price for weekend and evening patrons.
- In her spare time, your colleague is selling hand-carved wooden boxes on Etsy. The boxes are currently priced at $30/box. Your colleague is not happy with their current revenue stream and asks for your advice. You estimate that demand for your colleague's hand-carved wooden boxes is: Q = 800-20P. If your colleague is looking to maximize revenue, how should they price their wooden boxes? Keep prices at $30/box Lower prices to $20/box Raise price to $40/box Lower price to $25/box Raise prices to $35/box2. Acme Pharmaceutical Company discovers a vaccine that prevents the common cold and has a patent that grants it a monopoly on this drug. Acme has plants in both the North America and Europe and can manufacture the drug on either continent at a marginal cost of $10. Assume there are no fixed costs. In Europe, the demand for the drug is QE = 70 - PE, where QE is the quantity demanded when the price in Europe is PE. In North America the demand for the drug is QN = 110 - PN, where QN is the quantity demanded when the price in North America is PN (a) Determine the aggregate demand function for the combined mar- ket. Determine the inverse demand function for the combined market and the inverse demand functions for each of the two mar- kets separately. (b) To begin, assume that it is illegal for the firm to price discriminate, so that it can charge only a single price P on both continents. What price will it charge, and what profits will it earn?Joe Smiley buys his mobile phone services from Sprint, the sole provider in his state of Wyoming. Sprint offers the following pricing plans: a fee of 10 dollars per month and 50 minutes of free calls per monthor a fee of 20 dollars per month and 100 minutes of free calls. Under both plans the price of additional calls is 25 cents per minute. Joe Smiley's demand curve for mobile phone services is P=100 - 0.5Q where P is measured in cents/minute and Q is measured in minutes per month. Answer the following questions: a) suppose Joe Smiley subscribes to the first plan (10 dollar fee and 50 free minutes)(i) how much calling time would he consume? (ii) what would be his total benefit? What would be his surplus? b) suppose Joe Smiley subscribes to the second plan (20 dollar fee and 100 free…
- Indicate the four types of pricecompetitive levels.b) The price elasticity of demand for urban transit fares has been estimated to liebetween -0.1 and -0.6. Based on these results, what is the economic argument for raisingtransit fares? What political arguments might local governments and transit authoritiesencounter in opposition to these economic arguments?Suppose Verizon has only three cell phone customers. The demand curve for each customer’s monthly demand (in hours) is shown here: Here p = price in dollars charged for each hour of cell phone usage. It costs Verizon 25 cents to provide each hour of cell phone usage. a. If Verizon charges the same price for each hour of cell phone usage, what price should they charge? b. Find the profit maximizing a two-part tariff for Verizon. How much does the best two-part tariff increase the profit over the profit maximizing the single price?
