Q: explain in 100-150 words, how a business can raise money without incurring debt, what type of…
A: Debt is a measure of money borrowed by one party from another. It is utilized by numerous…
Q: James has a mortgage of $88,500 at 8% for 30 years. The property taxes are $3,700 per year, and the…
A: In economics, PITI refers to the acronym for principal, interest, taxes, and insurance. It…
Q: What is the amount of each payment?
A: A man needs php on a new gadget.
Q: Fiscal stance refers to
A: Fiscal describe the matters related to the finances of government, Specifically the revenue…
Q: E) Give an example of an event that will shift the supply curve for the chocolate bars left. Explain…
A: We have given the following demand function for chocolate bars. QD = 1600 - 200PQS = 100 + 100PWhere…
Q: We appreciate a perfect competition market where there is a predetermined limit number of firms with…
A: Market prevails in perfect competition Number of total firms in the market = 20 Cost function: CTi…
Q: LM K furniture Refer to the figure above. If cars are capital intensive and furniture is labor…
A: Production possibility frontier shows the different combinations of two goods that can be produced…
Q: For Perfect competition markets, determine whether there is market supply curve or not. If yes, how…
A: Perfect competition market refers to the market conditions in which there are many sellers and…
Q: Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is,…
A: Consumption Function is a function of disposable income and the latter is the income which is…
Q: A prominent argument against the use of price ceilings is: Multiple Choice they are unfair Othey…
A: A price ceiling is a government-imposed maximum limit on the price that can be charged for a…
Q: In the Bank of England's Monetary Policy report published in February 2023, we can read: “Potential…
A: Wage setting curves represent the relationship between wages and unemployment, indicating how…
Q: A. Explain the principle known as monetary policy ineffectiveness and discuss Lucas’ argument as to…
A: Monetary policy refers to the actions taken by a central bank or monetary entities to oversee and…
Q: A manufacturing company is considering investing in a new machine that costs $12,000. The machine…
A: Present value is the value of investment in today's dollar.…
Q: Fed Funds Rate 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50%…
A: The federal funds rate is the interest rate at which depository institutions (such as banks) lend…
Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…
A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…
Q: Consider the following table which shows production information for Austria and Belgium. Assume…
A: Free trade refers to the unrestricted exchange of goods and services between countries. In contrast,…
Q: 2. Which of the following countries has the lowest estimated size of the services sector as a…
A: A large group of economic activities that entail giving consumers or other firms access to…
Q: Q. Assuming that Kinston has the ability to sell the prototype in year one for $300,000, the NPV of…
A: Given:Case1 - If the test-marketing phase is successful, and expected perpetuity from year…
Q: How much does the production of a kayak add to GDP if the shell costs $250, the paint costs $20, the…
A: The term gross domestic product refers to the situation under which the overall flow of products…
Q: There are two goods A and B. In which of the following cases will good A have the more price elastic…
A: In this scenario, we are examining the price elasticity of supply for goods A and B. Price…
Q: ndia is the world’s largest consumer of sugar. Assume the world price for sugar is $750 per ton.]…
A: The world price refers to the price of a good or commodity in the international market. It is…
Q: If a bank has $118400 in reserves, $201600 in loans, what is the banks reserve ratio?' 19% 59% O22%…
A: Reserve ratio = Total Reserves / Total Deposits Total deposits = Total reserves + Total loan
Q: 4. GDP is rising and price of crude oil in declining. P | Demand:... Supply: . Equilibrium Quantity…
A: The impact of rising GDP and declining oil prices on the oil market will depend on the relative…
Q: 1a. What is the proper objective function for monetary policy? b. How transparent should the central…
A: Monetary policy plays a significant role for stable economic growth and development
Q: The following data is available for three different alternatives. Assume an interest rate of 2% per…
A: Present worth, also known as present value or discounted value, is a fundamental concept in…
Q: Of the following, who are counted as "unemployed"? Select all answers. a. A 45-year-old who was…
A: A person who is not currently working but they are able to work and are actively searching for work…
Q: Describe and analyze an issue related to a particular time period in the economic history or of…
A: The stock market is a centralized marketplace where individuals and institutions can purchase and…
Q: compare, contrass and give the similarities in corporate governance in three economies Germany,…
A: Corporate governance means the system of rules by which a firm is operated. It encloses the…
Q: What argument, based on macroeconomic theory, might a government use to justify shutting down a…
A: Government policies refer to the deliberate actions, decisions, and regulations implemented by a…
Q: Glacier has a comparative advantage in the production of peas , while Denali has a comparative…
A: There are two countries, Glacier and Denali. Each country produces two goods, i.e., Lentils and…
Q: a-Joon Chang argues that globalization: -is an inevitable consequence of technological progress.…
A: Globalization means the increasing interconnectedness and interdependence of economies with ,…
Q: Quantity Fixed Costs Variable Costs 2,900 30.40 2,900 57.37 2,900 84.33 2,900 111.28 2,900 138.23…
A: Cost refers to the amount of money, resources, or effort incurred in the production or acquisition…
Q: Instructions: Enter your answers as a whole number. The profit-maximizing price for Lady Gaga MP3s…
A: Profit maximizing price refers to the level of price at which a business or firm aims to maximize…
Q: $500 400 300 200 100 $100 300 200 Real GDP 400 -C+lg 500 Refer to the diagram for a private closed…
A: A private closed economy refers to an economic system in which all economic activities occur within…
Q: Give typing answer with explanation and conclusion compare in detail the corporate governance of…
A: Corporate governance is the arrangement of rules, cycles, and practices by which an organization is…
Q: Describe a decision a company has made when facing uncertainty. Compute the expected costs and…
A: In the event that the organization is intended to employ more specialists to build their benefit…
Q: lease explain how the production possibility curve works in Economics need graph with explaination
A: The production possibility curve is a diagrammatic representation of two goods that are produced in…
Q: Find the value of an at the money option to buy €12,500 for £10,000. In the next period, the euro…
A: In the world of finance , options play a crucial role in providing investors with the opportunity…
Q: Does the law of diminishing marginal utility applies to writing (like for example academic writing…
A: The law of diminishing marginal utility is an economic principle that argues that each extra unit of…
Q: Identify three items sold by firms in monopolistic competition and explain why you chose them.
A: The Monopolistic Competition is that market structure where there are number…
Q: Which countries are current allies with Kazakhstan? write with details and evidences. Can you please…
A: Kazakhstan is a landlocked country located in Central Asia , bordered by Russia to the north,…
Q: Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each…
A: Firm BInvestNot InvestFirm AInvest 9, 6 5, 7 Not Invest 7, 3 12, 8
Q: Here is the market for Broccoli Quantity Demanded = 100 - 2P Quantity Supplied = 3P There is a law…
A: Quantity demanded refers to the amount of any good or service that consumers want to purchase and…
Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…
A: Marginal utility refers to the additional satisfaction or usefulness that a consumer derives from…
Q: 1) The Cobb-Douglas production function is y = it vary with: (a) y: (b) 22/21. with a > 0 and 3 > 0.…
A: MP, marginal product is the change in total output produced by employing one more unit of the input.
Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…
A: The GDP (Gross Domestic Product) of the United States is defined as the market value of all the…
Q: 3) Amazon and Target both sell the new Xbox, and have a choice whether to charge a high price or a…
A: A Dominant strategy is the strategy that yields higher payoff and the strategy doesn't change with…
Q: Please explain how the production possibility curve works in Economics need graph with…
A: A PPC shows all the combinations of two ‘goods’ which can be provided if all resources are being…
Q: Demand and supply in the market for board games are given by the following equations: The…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Suppose that firm is in a breaking even status in a perfectly competitive market. Using graphs (for…
A: A theoretical economic model of a market structure where several small businesses sell the same…
Step by step
Solved in 3 steps
- The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is: P = 8 - 0.005Qd where P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output. a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw? b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh? c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…Consider any market that has a demand curve given by: Qd = 240 - 2P. Where Qd is the total quantity demanded in the market, given in millions of units and P is the market price, calculated in monetary units. Imagine that there are 2 Cournot oligopolists operating in this market with Cmg = CVme = 15 and fixed monthly costs equal to 1,400. About this market, ask yourself: a) What is the profit of each of the oligopolists? b) Imagine that one of the companies managed to implement a process innovation capable of halving its Cmg and CVme, so that they would go from 15 to 7.5. This investment implies an additional monthly expense of $1,800. Discuss the statement: "If this situation occurs, the innovative company will not implement variable cost reduction, as the quantity supplied in the market will increase very little; prices will remain very close to what they are today and its profits will not increase"Gary's Gas and Frank's Fuel are the only two providers of gasoline in their town. Below is the demand schedule for the market of gasoline. Assume that the cost of producing gasoline is 3 per gallon (AC=3, FC-D0). Suppose that the two producers collude (split production and profits evenly), what are the joint profits of these two firms? Q demanded (in gallons) 10 12 4 Market price (in dollar) $22 $20 $18 $16 $14 $12 $10 $8 $6 $0 O $27 O None of these options is correct. $55 O $72 O $36 50 00 3)
- 6. Three oligopolists operate in a market with inverse demand given by P(Q) = a - Q, where Q = 9₁ +92 +93 and q; is the quantity produced by firm i. Each firm has a constant marginal cost of production, c, and no fixed cost. The firms choose their quantities as follows: (1) firm 1 chooses q₁ ≥ 0; (2) firms 2 and 3 observe q₁ and then simultaneously choose q2 and 93, respectively. What is the subgame-perfect outcome?2. The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is:P = 8 - 0.005Qdwhere P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output.a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw?b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh?c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…10. The platypus is a shy and secretive animal that does not breed well in captivity. But two breeders, Sydney and Adelaide, have discovered the secret to platypus fer- tility and have effectively cornered the market. Zoos across the globe come to them to purchase their output; the world inverse demand for baby platypuses is given avby P=1,000-20, where Q is the combined output of blu Sydney (qs) and Adelaide (qA). vide a. Sydney wishes to produce the profit-maximizing quantity of baby platypus. Given Adelaide's choice of output, 9A, write an equation for the residual demand faced by Sydney. 19125 non c. ab. Derive Sydney's residual marginal revenue curve. Assume that the marginal and average total cost of raising a baby platypus to an age at which it can be sold is $200. Derive Sydney's reaction function. d. Repeat steps (a), (b), and (c) to find Adelaide's reac- tion function to Sydney's output choice. 18 e. Substitute Sydney's reaction function into Adelaide's to solve for…
- PleaseSuppose you are employed at a monopolistic company as a research (pricing) economist and you are deriving the behavior of two markets based on demand curves given by: Di(P1) 3 50 — Pі D:(p>) — 50 — 2р2 Assume that the marginal cost is constant at $8 a unit. (a) If it can price discriminate, what price should it charge in each market in order to maximize profits? (b) If it can't price discriminate, what price should it charge?Please
- 1. Consider two duopolists who each have a constant marginal cost c = e2 = 3 and face inverse demand P = 15 – Q,where Q = Q1 + Q2 is the total output of both firms. 1. Find the Cournot equilibrium quantity for each firm, the resulting market price, and the profits for each firm. 2. Find the Stackelberg equilibrium quantities for each firm, and the price, and the profits for each firm supposing that Firm 1 is the industry leader. 3. Suppose that Firm 2 figures out a way to lower its marginal cost to ez = 0 while firm 1 still has a marginal cost equal to 1: c = 3. How does this affect the Cournot equilibrium quantities, price, and profits? 4. How does this affect the Stackelberg equilibrium (with Firm 1 still as the leader) quantities, price, and profits?The market for knitted scarves at a local, weekend farmers' market is a Stackelberg duopoly. Sammy's Scarves acts as the Stackelberg leader and Knitting Nancy as the Stackelberg follower. Both Sammy and Nancy know that the market demand for knitted scarves at the farmers' market is: Q=320-4P where Q is the quantity of knitted scarves demanded and P is the price of a knitted scarf. Solving the market demand for P as a function of Q gives the inverse market demand: P-80-0.25Q. Sammy produces qs knitted scarves, and Nancy produces q knitted scarves. Each incurs a total cost of producing q; knitted scarves of TC (91)= =30+20q Sammy will sell 140 knitted scarves and Nancy will sell 70 knitted scarves at the local, weekend farmers' market.Help me please
