QUESTION 39 What name is given to the level of profit required to keep a firm in business? O a. Maximum profit O b. Supernormal profit O c. Minimum profit O d. Normal profit
Q: COURSE: MICROECONOMICS 2 - MONOPOLY AND PRICE DISCRIMINATION TYPE 2 - PRICE PER CONSUMPTION BRACKET…
A: Total revenue is the total value of the commodities produced and sold in equilibrium. Economic costs…
Q: Suppile Wage (Thousands of workers) (Thousands of workers) $7.50 625 375 Shortage or Surplus?…
A: Minimum wage is the legal wage level where the market can't hire workers at less than the minimum…
Q: A negative output gap denotes that O a. growth of potential output is negative. O b. potential…
A: Actual output in the economy is determined at the intersection of the aggregate demand and aggregate…
Q: Qs = 5P² + 200 in bottles and prices are r
A: Market Equilibrium: Market equilibrium is a situation where the QD is equal to the QS at the given…
Q: The price elasticity of demand for a given product is equal to -1.45 (using the percentage method).…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: 5. Katie's Quilts is a small retailer of quilts and other bed liner products. Katie currently…
A: The expenditure incurred in producing a good or a service is known as cost. Cost can be divided into…
Q: 1. Using an example, explain how John Maynard Keynes distinguished macroeconomics from…
A: Inflation is a condition in the economy when there is a general rise in the price level of goods and…
Q: Levinn’s utility function is expressed as the following: U= C1 C2 0.3 where C1 is his first period…
A: In economics, a utility function is a mathematical representation of a consumer's preferences over…
Q: QUESTION 8 Which of these is positively related to the size of the multiplier? O a. The marginal…
A: In economics, the multiplier effect is the rise or fall in the outcome which results due to the…
Q: Which of the following is NOT a consequence of having an overvalued currency it acts like a tax on…
A: Currency refers to a system of money in general use in a particular country or region. It is a…
Q: QUESTION 19 Should interest rates in the United Kingdom rise relative to interest rates in eurozone,…
A: An exchange rate is the value of one currency expressed in terms of another currency. Exchange rates…
Q: "Discuss the Impact of Taxes on Household Savings in the United States"
A: Taxes in the United States can significantly affect household savings. Taxes decrease the amount of…
Q: 16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity…
A: A banking crisis occurs when a large number of banks or financial institutions face major financial…
Q: The Herfindahl-Hirschman Index (HHI), a commonly accepted measure of market concentration. If the…
A: The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to determine the…
Q: The marginal benefit of being able to emit a ton of sulphur dioxide emissions for two firms are…
A: Abatement cost refers to the costs brought about in diminishing or staying away from the emission of…
Q: Presently, Able High Lift and Baker Overhead are the only suppliers of services that can lift heavy…
A: Cournot Duopoly and Stackelberg Duopoly are two different models of duopoly, which are economic…
Q: Analyze the effect of fiscal and monetary policy on interest rate in zimbabwe
A: Fiscal policy is a strategy by which the national government utilizes measures that include…
Q: provide a critical discussion of how the zero based budgeting approach can be a strategic budget…
A: Zero based budgeting is a novel economic proposal that involves re-evaluation of activities and an…
Q: Either all or none ...
A: A monopolist is a single firm in the market without facing any competition. It has the market power…
Q: Presently, Able High Lift and Baker Overhead are the only suppliers of services that can lift heavy…
A: Cournot Duopoly and Stackelberg Duopoly are two different models of duopoly, which are economic…
Q: If the short-run marginal and average variable cost curves for a competitive firm are given by SMC =…
A: Total revenue is the product of price and quantity Total profit is the difference between the total…
Q: ‘Banks are inherently fragile.’ Explain what this statement means and how this fragility led to the…
A: The financial crises occurs due to the poor fundamentals in an economy, that causes it to be…
Q: Presently, Able High Lift and Baker Overhead are the only suppliers of services that can lift heavy…
A: Cournot Duopoly Equilibrium and Stackelberg Duopoly Equilibrium are two models used in economics to…
Q: A command economy is also called a centrally planned economy. True False
A: An economy alludes to the arrangement of production, dissemination and consumption of goods and…
Q: Consider the following demand function P = 62 - 2Q and the Cost for the business is $150 (for…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: Consider the information given below: ΕΟΥ Cash Flow 0 -$300 +125 +125 +125 1 2 3 IF MARR = 10%, then…
A: The payback period is calculated by using the formula: Payback period =years before full recoevry…
Q: QUESTION 2 The interaction of demand-pull and cost-push inflation will result O a. in permanently…
A: Demand-pull inflation occurs when demand for goods and services increases, leading to a rise in…
Q: Ross is an owner of a donut shop and is subjected to a perfectly competitive market. When the news…
A: In a perfectly competitive market, the market price is determined by the market forces at the…
Q: The production possibilities frontiers in the figure to the right show how many bananas and coconuts…
A: Comparative advantage refers to the ability of the country or individual to produce the good at a…
Q: Effect of fiscal and monetary policy in zimbabwe
A: Fiscal policy: It refers to a policy in which government use tools such as collecting tax, spending…
Q: Explain what is meant by the term “investing?” How does investing differ from saving and trading?
A: Investing in economics refers to the allocation of resources, such as money or capital, with the…
Q: Using you answer for Question 2, what will be the price per MMBtu of natural gas on June 30, 2022 if…
A: The price per MMBtu can be calculated by using the following equation. Price per MMBtu= Pi*(1+i)t
Q: Using indifference curves and budget constraints, derive the demand curve for an individual (use two…
A: Indifference curves are curves that represent a set of combinations of two goods that give the same…
Q: According to your answers, one part of Step 3 - Proft under discrimination says: "Therefore, in the…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: Below are the annual costs and benefits of four alternative road projects. Apply the incremental B/C…
A: Incremental Benefit-cost ratio analysis is a method to find the most preferred alternative. The…
Q: 1) Assuming that the current interest rate is 3 percent, compute the present value of a 5-year, 5…
A: The current interest rate is 3%. The coupon rate is 5%. The face value of a bond is $1000. Number…
Q: ing off debt over time in e interest. As the loan amortizes, the amount O a. Even, proportionally O…
A: An amortized loan is a loan that is paid off over time in equal instalments, with each payment…
Q: 1. Characteristics of competitive markets The competitive market model depends on the following…
A: Perfect Competition is a type of market structure where: There are a large number of buyers and…
Q: Explain why Von Hayek believes the Dependence Effect is not a bad thing.
A: The Dependence Effect is an idea presented by economist John Kenneth Galbraith, which proposes that…
Q: You are given the following best-response functions for duopoly firms playing a Bertrand…
A: Best response function for duopoly firms that are playing Bertrand price setting game:…
Q: 1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for…
A: Externalities are an essential subject in economics due to the fact that they correspond to the…
Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Assume that two companies (A and B) are duopolists who produce identical products. Demand for the…
A: Total Cost: The sum of TFC (total fixed cost) and the total variable cost is termed the total cost.…
Q: 9P 4. The market for nutmeg is controlled by two small island economies, Penang and Grenada. The…
A: DISCLAIMER “Since you have asked many questions, we will solve the first three sub-parts question…
Q: How is an efficient level of production of a public good determined? What level of the good would…
A: *Hi there as you have posted multiple questions we are solving first one with one sub part . Kindly…
Q: Part A: The base year in a country for the calculation of national income data is 2012. Real GDP in…
A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…
Q: 1.The Competitive Firm. P a. In the two coordinate axes below, illustrate the relationship between…
A: Demand is a desire backed by purchasing power. when a consumer has the power and willingness to buy…
Q: The table below shows cost data for producing different amounts of oil. The market for oil produces…
A: If the market is free then the price at which the demand curve intersects the private supply curve…
Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…
A: The impact of change in aggregate demand due to the change in government spending is more than that…
Q: Graphically illustrate and discuss the potential gains from trade for a country with internal…
A: Gains from trade are the net gains that countries can obtain through trading with one another. Trade…
Step by step
Solved in 3 steps
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.How does the average cost curve help to show whether a firm is making profits or losses?Which of the following equations calculates the profits of a firm? O A. Total revenues - Fixed costs OB. Total costs - Fixed costs OC. Total revenues - Total costs O D. Total revenues + Total costs
- QUESTION 2 When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit O B. Economic Profit O C. Neither accounting nor economic profit. D. Cannot tell from the article what kind of profit сQUESTION 8 Other things equal, if the fixed costs of a firm were to increase by $100.000 per year, which of the following would happen? B.Average fixed costs and average variable costs would O D. Average fixed costs would rise, but marginal O C. Average fixed costs and A. Marginal costs and average variable costs would both rise. average total costs would rise rise costs would fallA firm will at the output where marginal cost increases O a. begin to experience diminishing returns O b. become profitable O c. begin to experience increasing returns O d. start to experience losses
- Under which of the folowing examples is t likaly that the accounting profit is positive and the economic profit is negative? OA Using a restaurant you purchased to sell Menican food instead of talian food. OR It you use a diamond mine as a touriet atraction instead of using it for mining. Oc Opering a bank branch near a university campus. OD. Such a scenario, where accounting cost is positive and economic profit is negafive, is not possibie.If all of the firms in an industry are making positive economic profit, what does it mean for those firms? O The firms accounting profit the firms" opportunity cost O The firms' explicit cost firms' opportunity costThe profit maximizing rule states that a business maximizes profits when marginal cost equals Select one: O a. Variable costs O b. Fixed cost O c. Marginal revenue O d. None of the above
- A firm is producing the profit-maximizing amount of output when it is producing where its curve intersects its curve. Select one: total cost; total revenue O average total cost; average variable cost O marginal cost; average total cost O marginal cost; marginal revenue O marginal cost; average variable cost27 ces The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at the profit-maximizing level of output, indicated by Pt. A. Drag the points to move or resize. O Price/Cost $50 $40 $30 $20 $10 0 10 20 30 Quantity MC 40 P = MR ATC AVC 50 Instructions: Enter your answers as a whole number. The profit-maximizing level of output is Tools Pt. A Profit/Loss units and profit is $Question 13 How can a firm avoid fixed costs in the long run? O by incorporating O by expanding O by shutting down O by exiting