Dollars B 0 hk Output efbc. Ofon. egac fgob. MC C b n MR ATC AVC In the above diagram, at the profit-maximizing output, total profit is represented by the area bounded by letters
Q: On the following graph, the black line shows potential real GDP and the blue line shows actual real…
A: Real GDPReal gross domestic product (real GDP), also known as constant-price GDP, asset prices GDP,…
Q: 1 Negative Externality Suppose that the private market for widgets is characterized by the following…
A: A negative externality is a concept in economics that occurs when the production or consumption of a…
Q: Brad is an old mechanic on the street, and he can make Cars and Trucks. He gets paid by the hour,…
A: The Production Possibilities Frontier (PPF) is a curve that illustrates the variations in the…
Q: 40 30 20 10 12 10 200 100 59 10 O 250 As a production process requires labor L and capital K, q = F…
A:
Q: A new bottle-capping machine costs $45 000, including $5000 for installation. The machine is…
A: For the calculation of the economic life of the bottle capper, we need to calculate the equivalent…
Q: What is the payback period for a project with the following characteristics, given a minimum…
A: First Cost = $20,000Annual Benefits = $8,000Annual Maintenance = $2,000 in year 1 and then it…
Q: See Diagram 2. if Firm Y's equilibrium point is J, which is total wage bill? (A) OAHK (B) OBJK (C)…
A: Wage bill is defined as the total wages that are paid by the firm to the workers.It is the total…
Q: A cash-starved town decides to impose a $6 excise tax on t-shirts sold. The following table shows…
A: The only price at which consumer and producer plans coincide is the equilibrium price, which is…
Q: The table below shows the quantity demanded and supplied in the labor market for economics…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Suppose the demand for labor is given by MPN = 200 - 0.5N where N is the number of workers and MPN =…
A: A minimum wage creates a surplus in labor supply in a situation when minimum wage is set above the…
Q: Over the last 10 years, the dollar has depreciated sharply vis-à-vis the euro. Suppose that in the…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: Select the following statement that most accurately reflects the banking system? Group of answer…
A: The banking system refers to the network of financial institutions, including banks, credit unions,…
Q: Suppose the federal government runs a surplus and the Federal Reserve purchases bonds from banks…
A: The Federal Bank conducts open market operations by purchasing or selling Treasury bonds and other…
Q: Required information Nuclear safety devices installed several years ago have been depreciated from a…
A: Annual worth, often denoted as AW, is a financial concept used to evaluate the economic equivalence…
Q: How much tax revenue does this tax produce for the government? a b Figure 6-19 P $24 $30 с $32 9 $56…
A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…
Q: 28. A terms-of-trade index that equals 150 indicates that compared to the base year of…
A: Terms of trade are defined as the export-import ratio prices. It measures the total exports of a…
Q: Suppose that you are interested in comparing the costs of producing inpatient care services at XYZ…
A: Average short-run costs refer to the change in the total cost when an additional unit of output is…
Q: in wealth and _____ in government spending, along with a(n) of the dollar, will shift the U.S.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 11) Draw a supply and demand graph, properly label all curves and axes. Then draw the effect of a…
A: Demand refers to the quantity of a goods or service that a buyer is willing and able to buy at a…
Q: The Case for Government - Nonexcludable Public Goods Which of the following is a case for government…
A: Public good is such good that is non rival as well as non excludable in nature which means that it…
Q: 8. Begin from the baseline preferences and endowments. A. Assume Yuri is wealthier than Xavier; he…
A: Interest rates are expressed as a percentage and can be either simple or compound. Simple interest…
Q: A bank holds $10 for every $100 in deposits. The bank wants to hold $9 for every $100 in deposits.…
A: The reserve are the part of deposit that is kept aside by the banks as per the rules of central…
Q: Refer to Figure 6-12. When the price ceiling applies in this market, and the supply curve for…
A: The price ceiling is the maximum price that can be charged. A producer can not charge price which is…
Q: Expenditures for consumer goods and services Exports Government purchases of goods and services…
A: Personal income describes the total earnings received by an individual from various sources,…
Q: The following technologies are available to produce 10 metres of cloth. Based on this information,…
A: The wage rate is defined as the rate of wage given to a worker based on the hours worked. It is the…
Q: In the 1920s and 1930s, economists became increasingly aware that there were industries that did not…
A: The theory of monopolistic competition states that there exists a large number of producers and they…
Q: What is the difference between accounting profit and economic profit? Omarginal costs explicit…
A: Total revenue is the product of price and quantity. Monetary expenses are the explicit cost.…
Q: Price and Cost 0,0₂ Refer to Exhibit 31-2. If the exhibit represents a positive externality…
A: Positive externality refers to the benefits received due to the operations of the third party.…
Q: Refer to Exhibit 21-4. Curve D is a(n) a. average total b. marginal c. average fixed d. average…
A: Average variable cost is the variable cost divided by the quantity. AVC is U shaped curve. Average…
Q: Consider that there is a continuum of consumers having different valuations for a motorcycle that…
A: Monopoly:Monopoly is a market where there is one seller and many buyers. Seller sells the product at…
Q: An individual consumes two goods, clothing and food. Given the information below, illustrate the…
A: The table for clothing price and food prices given the income is given as Clothing PriceFood…
Q: Suppose the United States operates under a flexible exchange rate. Consider both the domestic and…
A:
Q: PRICE (Dollars per camera) 250 225 200 175 150 125 100 75 50 25 O Demand Supply 0 90 180 270 360 450…
A: Equilibrium point is the point where demand is equals to supply.The price at which equilibrium…
Q: If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in…
A: CPI is the consumer price index. The CPI is used to calculate the inflation rate. The CPI is…
Q: Other things being equal, an increase in a country's interest rates will cause its currency to…
A: An exchange rate is the rate at which one country's currency can be exchanged for another country's…
Q: a) Briefly explain the difference between a trade secret and a patent. b) Why might one prefer a…
A: Intellectual property refers to creations of the mind, such as inventions; literary and artistic…
Q: One share of Tesla stock has increased in value from $61/share in February 2019 to $941 in February…
A: Compound interest will be computed as an addition of interest to the principal amount plus the the…
Q: 20. Short run in the AD-AS model Which of the following would cause prices and real GDP to rise in…
A: Aggregate demand (AD) refers to the total demand of the goods and service by an economy in a period…
Q: 1. Zero pollution is not a desirable social goal because the marginal damage costs are equal to…
A: A social goal is a goal or target that intends to further develop the well-being, personal…
Q: The figure shows Phillip's budget line when he has $40 a week to spend on protein bars and movies.…
A: A budget line is a graphical representation or equation that shows the various combinations of two…
Q: 5 What is the unit price of a 32-ounce box of brown sugar that costs $38.4? Multiple Choice O $76…
A: Ounce is basic unit of measurement which measures weight of a product or things.It is generally used…
Q: Given a demand curve of P = 225 - 1Qd and supply of P = 38 + 1Qs, find the price elasticity of…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: 2. Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn…
A: Cash flow diagrams show the relationship between revenue and expenses over a given period of time. A…
Q: In a small open economy if domestic private saving equals $50 billion, government saving equals-$20…
A: The trade balance is the total of a nation's products exported and imported minus any money…
Q: QUESTION 9 If the price is below the equilibrium level, then the quantity demanded will exceed the…
A: Equilibrium, in the context of economics and a number different fields, refers to a country of…
Q: Suppose that you experience a decrease in your income, which results in an increase in demand for…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Does the following activity or event create an extemality? If it does, is it an external benefit or…
A: An activity by others that affects other parties is known as external cost. It may be cost or…
Q: 3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line)…
A: The consumers pay a lower price than the actual price of goods and services to get benefit from…
Q: A company has developed a linear trend equation that can be used to predict annual sales of its…
A: The estimated equation for annual sales is Here is annual sales at year t from now.Annual sales…
Q: Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is,…
A: Consumption is the act of making a purchase today in order to access a service that could be useful…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Asap please.... I vll upvoteGive explanation whether the statement is true or fals e don't upload any graph for explanation please and get like. Hand written solutions are strictly prohibited.TOTAL COST AND REVENUE (Dollars) 100 Total Cost ם Total Revenue 75 50 -25 A 50 0 1 2 5 QUANTITY (Shirts) A A Profit Calculate Neha's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. (?) COSTS AND REVENUE (Dollars per shirt) 30 25 225 20 15 10 о OO 2 3 A 5 6 QUANTITY (Shirts) Marginal Revenue + Marginal Cost Neha's profit is maximized when she produces 10 shirts. When she does this, the marginal cost of the previous shirt she produces is $ which is than the price Neha receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is S than the price Neha receives for each shirt she sells. Therefore, Neha's profit- maximizing quantity corresponds to the intersection of the which is curves. Because Neha is a price taker, this…
- What two lines on a cost curve diagram intersect at the zero-profit point?What is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)
- Quantity TR MR TC MC 0 0 - 5 - 1 10 2 2 20 15 3 30 10 4 10 37 Complete the following table and identify the quantity that maximize profitLinder which of the folowing asamples is E likaly that the accounting profit is pasitiva and the econamic proft is nagative? OA Uing a restaurant you purchened to seil Mexioan food inatead of taian food OB Fyou use a diamond mine as a lourist atraction instead of using it for mining OG. Opering a bark branch neer a university campua. OD. Such a sceraro, where accouning cost is postive and economic proft is negative, is not poesitie.MC ATC 20 -MR 16 30 40 Firm What is the amount of profit for the firm in the graph?
- explain what is happening in this graphs< The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $100 per unit per day and the fixed cost of the capital is $2000 per day. Click the icon to view the table. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) 100 20 40 60 80 100 120 140 40 60 300 80 800 1370 1570 1630 1670 300 800 TFC $2000 1370 $ 2000 $ 2000 TVC $2000 Complete the last four columns of the table. Units of Labour (per day) Total Output (per day) 20 100 $ 4000 $ 6000 $ 2000 $ 8000 $2000 $10000 TFC TC $ 4000 $6000 TVC $ 8000 2000 $12000 $14000 $10000 $2000 $14000 $16000 $12000 TC MC MC $10 4 $3.50 $10 4 AFC AFC $20 $2.5 AVC $6.67 $ 13.33 $ 1.46 AVC $20 $7.5 $5.84 ATC ATC $40…Using the graph below, calculate the firm's profits at the profit maximizing output 196 182 168 154 140 126 112 98 84 70 56 42 28 14 23 46 69 92 115 138 161 184 207 230 253 276 299 322 Quantity -P -- MR MC AC -10 100 250 Price
