In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC = 10Q²-5Q+ 20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition.
Q: Unsure which is the correct answers Suppose that three firms make up the entire wig manufacturing…
A: The Herfindahl-Hirschman index is the measure of the concentration of the market. HHI is calculated…
Q: The Missing Value for Kenny is: [Select] Is there a short-term incentive for Kenny to Cheat?…
A: In economics, the demand curve represents the relationship between the quantity of a good or service…
Q: Souvlaki Taverna is one of many restaurants in Athens, Greece which sell Souvlaki kebabs. All…
A: In economics, a cost curve is a graph of the expenses of production as a function of the total…
Q: Fill in the following response boxes for situations A through E. Then answer the questions below…
A: Inflation means a rise in the price of the commodities available in the economy which must be…
Q: Social Security system levies a tax on workers and pays benefits to the elderly. Suppose that…
A: a. The rise in the Social Security system's levy and benefits would probably have a variety of…
Q: A monopolist is able to price discriminate in two market segments. The inverse demand curve in…
A: Price discrimination is a strategy used by a monopoly to increase profits by charging different…
Q: Suppose a firm has acquired a monopoly on water distribution in a certain county in Florida. The…
A: The monopoly firm has market power so it can set its price and output in the market. Formulas: Total…
Q: It is often said that a competitive market is more beneficial for the consumers as compared to the…
A: In the case of Perfect Competition, there are large number of sellers selling identical products. An…
Q: 9. Bank leverage Use the information presented in Northeastern Mutual Bank's balance sheet to answer…
A: The required reserve ratio of a bank depicts the minimum amount of deposits a bank must keep as…
Q: Use the information given in North Central National Bank's balance sheet to answer the following…
A: The reserve is the percentage of money that the commercial banks have to keep with them without…
Q: 3. Does the welfare loss from overconsumption of medical care in the presence of health insurance…
A: Health insurance protects the cost of an insured individual's medical and surgical costs. Subject to…
Q: All of the given answers
A: Devaluation is the intentional reduction of a country's currency's value in comparison to another…
Q: Draw a graph and an argument about how increases in health due to one medical innovation can lead to…
A: This question deals with the concept of how one medical innovation can lead to improvements in…
Q: 2. Define adverse selection. Give three examples of adverse selection in markets other than for…
A: When one party has access to knowledge that the other side does not, a market phenomenon known as…
Q: an manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash…
A: Economics refers to the study of the scarcity of resources and its implications for the use of…
Q: Economists often assume that people are rational and forward-looking in their decisions. What is…
A: Empirical tests: These are methods used to gather data and evidence in order to test a hypothesis or…
Q: The following data are for the economy of Moksha. C=40+ 0.8Y I=70 G= 210 XN=50 0.2Y a. Calculate…
A: Aggregate expenditure is the sum of consumption, investment, government purchases, and net export.…
Q: The U.S. economy's initial aggregate demand curve is AD₁. Drag each event to the curve that would…
A: The aggregate demand curve indicates the total quantity of all items (as well as the services)…
Q: - view chart 7. What is the rule for determining the daily output (production level) that will…
A: The perfectly competitive firm chooses to produce at MR =MC and this is also known as the…
Q: Suppose the nominal interest rate on savings accounts is 12% per year, and both actual and expected…
A: In economics, Fisher commonly refers to Irving Fisher, an influential economist who made significant…
Q: what is fixed cost
A: In a basic economic sense, cost is the computation of the optional opportunities foregone in the…
Q: The country is experiencing a serious rise in inflation which the government wants to control…
A: The term "GDP" (gross domestic product) refers to the entire worth of goods and services generated…
Q: When the economy is in recession and below potential GDP, more of the increase in aggregate demand…
A: When talking about recession, it can be said that it is the situation when an economy is unable to…
Q: Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of…
A: In the short run, certain production factors are fixed and some are flexible. Only by reducing the…
Q: If Wendy can produce more of all goods than Tommy in an hour, then OA. Wendy has a comparative…
A: There are two people, Wendy and Tommy. Wendy can produce more of all goods than Tommy in an hour.
Q: When a decrease in the scale of production leads to higher average costs, the industry exhibits…
A: Return to scale is a long-run concept that tells the relationship between the scale of production…
Q: Output is produced according to production function y = f (L, M) = L2 M2, where L is the number of…
A: Production function: y=fL,M=L2M2 .... (1) The cost of labor is w and the cost of the…
Q: Which of the following statements correctly describe discouraged workers? (If none of the choices…
A: Discouraged workers are those workers who have given up looking for a job and have not looked for a…
Q: Christina wants to work exactly 12 hr/wk to supplement her graduate fellowship. She can either work…
A: We must evaluate the wages Christina would receive from her two jobs in order to decide how many…
Q: The market for lemonade is currently in equilibrium and the cost of lemons rises an input How Price…
A: Demand shows an inverse relationship between price and quantity demanded. Demand curve slopes…
Q: plot the short-run industry supply curve when there are 30 firms. Note: Points will snap to the…
A: Supply Curve is the curve that denotes the different levels of quantity that a producer is willing…
Q: The profit-maximizing price is
A:
Q: Please respond to the following: Interpret the role common law plays in healthcare in the United…
A: American health care has been significantly influenced by common law. The importance of common laws…
Q: Given the following data: Desired Investment /: $200 Current Account Balance CA: $-400 Net Exports…
A: This question involves calculating the desired consumption and domestic absorption given some…
Q: rles has decided to open a lawn-mowing company. To do so, he purchases mowing equipment for $5,000,…
A: Charles's Implicit cost is the opportunity cost of opening a lawn-mowing company. Opportunity cost…
Q: Use the table above to answer the following questions. a) What is the value of real GDP and price…
A: Long run aggregate supply shows the output level produced when all the resources are efficiently…
Q: There is a temporary demand shock Ep = -0.05. In the short run, immediately following this shock,…
A: Inflation targeting refers to a banking policy opted by central bank that makes an adjustment to…
Q: At what output level does the monopoly described in the figure below maximize its profit? $6.40 5.50…
A: In a monopoly, marginal revenue and demand curve are downward sloping. Marginal revenue lies below…
Q: A supply curve shows the quantity supplied at the other factors that influence firms' supply…
A: A supply curve illustrates the graphical representation of quantity supplied at different prices,…
Q: 1 01:49:26 -Book Price ($) OU 60 40 20 0 8 Output 12 MR 16 of $ Save & Exit Submit Check my work
A: A firm maximises profit by producing the level of output where marginal cost (MC) equals marginal…
Q: Which one of the following statements about corporate social investment (CSI) is correct? a.…
A: Corporate social investment (CSI), commonly referred to as corporate philanthropy, is the voluntary…
Q: :Which of the following statements is/are true? a) The LM curve is vertical if money demand does not…
A: The IS/LM curve can be defined as the graphical model that defines relation among interest rate and…
Q: e. At the new equilibrium there is a budget deficit os $ 4 Round your answer to 2 decimal places.
A: Aggregate expenditure is the sum of Consumption, Investment, government spending and net export. At…
Q: If the inflation target increases, the AD curve is unchanged but inflation increases along the AD…
A: The inflation target refers to a specific target on inflation set by central bank for medium-term…
Q: The three major types of Monteray Policy instruments are
A: The central bank's macroeconomic policy is known as monetary policy. It is a demand-side economic…
Q: 4. Profit maximization and loss minimization BYOB is a monopolist in beer production and…
A: A monopolist is a single firm in the market producing unique good, without facing any competition…
Q: Draw graphs with quantities of banana milkshake on the horizontal axis and quantities of strawberry…
A: In economics, an indifference curve (IC) is a graphical representation of a consumer's preferences…
Q: d) What is the value of unplanned changes in the inventory investment when real GDP is $4000? e)…
A: Their autonomous consumption is $700, and the marginal propensity to consume is 0.8, and Net taxes…
Q: Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of…
A: Given MARR is 8%. Alternative selection using Incremental rate of return analysis: First of all drop…
Q: Suppose two firms, Allstom from France, and Bombardier from Canada, are bidding on a contract to…
A: Game theory studies the interactions and decisions of multiple individuals or groups, called…
Step by step
Solved in 3 steps
- ADTF Distributors produces and sells a line of virtual sketch pad devices with a micro-USB connection. They find that their profit when producing and selling x devices changes according to the marginal profit function P'(x) = 60 -0.1x. dollars per device. They also know that when only 10 devices are produced and sold their loss can be expressed as P(10) = -650. (a) Find the function for the total profit from producing and selling x virtual sketch pad devices: P(x) = (b) Use your answer to part (a) to complete the following sentence. When ADTF Distributors produces and sells 603 virtual sketch pad devices, we predict that their total profit will be $ (c) From the profit function, we can conclude that the fixed costs when producing the devices is $ Given that the variable costs of the production are $27 per device, then the total cost to produce 603 virtual sketch pad devices will be $ (d) When 603 devices are produced and sold, the selling price must be $ Hint: First, find the total…ect of the utility commission's ruling on the profitability of the firm? 15 A company estimates that the demand for its product fluctuates with the price it charges. The demand function is q = 280,000 – 400p where q equals the number of units demanded and p equals the price in dollars. The total cost of producing q units of the product is estimated by the function C = 350,000 + 300q + 0.0015q? (a) Determine how many units q should be produçed in order to maximize annual profit. (b) What price should be charged? (c) What is the annual profit expected to equal? 16 Solve the previous exercise, using theA large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. The price charged will be determined by p=$600−(0.05)D per 1,000 board feet. a. For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume. b. What is the domain of profitable demand during a month?
- An entrepreneur named Khadijah has total revenue shown by the equation TR = 150Q - 5Q² and total costs shown by the equation TC = 20 - 10Q. Determine the amount of output that must be produced by Khadijah to get the maximum profit and what is the maximum profit from that amount of output. Prove that the value obtained is the maximum!show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.A profit making company wants to launch a new product. It observes that the fixed cost of the new product is 35,000 and the variable cost per unit is 500. The revenue function for the sale of x units is given by 5000x- 100x². Find (i) profit function, (ii) break- even values,
- A company estimates that the total revenue, R, in dollars, received from the sale of q items is ? = 3000 + ln(1 + 1000?^3) and the marginal cost is ??(?) = 0.05?^2 − 1.6? + 50. Calculate and interpret the marginal profit if q = 100.Please no written by hand and no emage Suppose that a company that makes and sells hand-crafted artwork has a cost function C(x) = 24x + 300, where x is the number of items made, and a revenue function R(x) = 45x, where x is the number of items sold. What is the profit from the 28th item made and sold? There is a $ sign listed next to the answer box, so do not type a $ sign in your answer.A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit.
- Suppose that the profit function for a product can be calculated as follows: Profit (300-C1-C2) *X)-10000 Where X-labor cost/unit Y= parts cost /unit D- Demand Assume that labor costs could range from $42.1 to $48.1 per unit, and parts cost range from S814 to S90.4 per unit, and annual demand could range from 16.4 to 275 units what is the best-case scenario profit?A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 75 – 0.1D units (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,000 per month and the variable cost is $30 per unit produced. Solve, a. What is the maximum profit per month related to thisproduct? b. What is the range of profitable demand during a month?Profit Analysis Unendo, is a large computer game manufacturer. They have estimated that the demand function for their game "Star Wars Battlefront III" is as follows... STAR WARE BATTLEFRONT p = 86 - 0.05q where p is the price of a game and q is the number of game produced and sold per week. They estimate that their cost function in dollars is ... Clq) = 179 + 5000; where the fixed cost is $5000 and the marginal cost is $17 per game Unendo wishes to maximize the weekly profit of producing and selling the game. Find the maximum profit they can earn. (Round your answer to 2 decimal places, if necessary)