Due to low barriers to entry, monopolistic competitive firms can earn ____________ in the long run. Accounting profit but not economic profit. Economic profit but not accounting profit. Both economic profit and accounting profit. Neither economic profit nor accounting profit
Q: 5000 Find the consumers' surplus if the demand function for a particular beverage is given by D(q)…
A: D(q) = 5000(5q+9)2At Equilibrium Q = 5
Q: The stagflation of the 1970s can be adequately explained using CKM if we add the assumption of an…
A: Until the 1970s, many economists felt that inflation and unemployment were inextricably linked. They…
Q: nsidering putting on a special one-time screening of a new movie. This screening sa fixed cost of…
A: Price Discrimination is a procedure that organizations use to boost income by charging clients…
Q: The world price of aluminum is Pw = $20. The US domestic supply of aluminum and the domestic demand…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…
Q: A company is planning to raise savings with associated probabilities shown in the table below. The…
A: MARR The minimum acceptable rate of return (MARR), or hurdle rate, is the minimal rate of return a…
Q: An annuity offers a payment of $5000 at the beginning of every three months for twenty years.…
A: An interest rate refers to the amount charged by a lender to a borrower for any form of debt. It is…
Q: 5. It is sometimes argued that the problem of environmental pollution can only be solved by…
A: Here pollution is an externality that has a detrimental impact.
Q: Which of the following is not an assumption of a competitive labor market? numerous buyers and…
A: The answer is - interchangeable workers
Q: a. Are there any values for r' and y' such that there are two Nash equilibria in pure strategies? If…
A: Game theory is a theoretical framework for conceiving social situations among competing participants…
Q: Assuming that the interest rate is 5% and will remain at that value indefinitely: The present value…
A: The current worth of money to be received in the future with one or more payments, discounted at a…
Q: Assume that the plum market has lots of different farms. They are producing pretty much the same…
A: A perfect competition is called as the ideal market structure because; in this structure of market…
Q: Why is the short run marginal cost curve U- Shaped?
A:
Q: what is the rational for a country that promotes free trade to put tariffs on some imported goods…
A: A levy is a duty forced by an overseeing expert on labor and products entering or leaving the nation…
Q: 1. The Reinheitsgebot is a set of laws established in the 1500s that regulate the production and…
A: When the price charged is high or less than the equilibrium price set by market forces of demand and…
Q: Refer to the figure below to answer the questions that follow. Surplus Deic GOP, Rea domestie et GOP…
A: In an economy, there are different ways to analyze the employment status based on different types of…
Q: Proponents of free trade argue that that liberalisation of trade relationships between rich and poor…
A: (Q) Proponents of free trade argue that that liberalisation of trade relationships between rich and…
Q: Assume you can work as many hours per day as you wish at £20 per hour, after tax. You have no other…
A: Optimal choice - It is the best combination of goods which will lead to the best satisfaction of the…
Q: If the price of product M increases from $80 to $100, the quantity supplied for product M will the…
A: 1. The elasticity of supply measures the percentage change in the quantity supplied due to the…
Q: Question 8 Suppose Barbara, a self-employed graphic artist, buys a new color copier that she uses…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Once you understand how value is created for different customer segments, the next step up the…
A: At the marketplace, a firm has to make decisions in various steps based on their requirements.…
Q: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…
A: The balance of trade of a country is known as the difference between the value of the country's…
Q: A buy and sell agent buys a motorcycle for 37,000.00 in the year 1990 and it was sold for 90, 000.00…
A: We are going to use present value using the provided formula to answer this question
Q: 8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…
A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…
Q: V = D + E Value of Asset = Debt + Net Worth According to normal economic theory, when will…
A: Given: V = D + E
Q: A market consisting of many sellers who sell similar but not identical products is an example…
A: There are four market structures with different types of goods sold, number of firms, and barriers…
Q: What is the difference between static and dynamic analysis in economics? When is each appropriate?
A: An economic analysis is a method used by specialists to determine how significant economic elements…
Q: Jane has a budget of I dollars and is deciding how to invest over the three healthcare-related…
A: Given information U=M1αM2βM3γPrice of M1=P1Price of M2=P2Price of M3=P3Consumers income=I
Q: Suppose the price elasticity of demand for cheerios is -0.88. If so, the demand for it is (Elastic,…
A: The answer is as follows:-
Q: Assume that the dollar price level is 15,0 level is 10,000GBP/Consumption bundle, and the exchange…
A: Purchasing power is the value of a currency expressed in terms of the number of goods or services…
Q: Assume that consumers view tax preparation services as undifferentiated among producers, and that…
A: The correct answer is given in the second step.
Q: The long-run AS curve is given as Y =100. a) Derive the SRAS curve. (Note: The value of EP is not…
A: PLEASE FIND THE ANSWER BELOW. SRAS CURVE: The Short-Run Aggregate Supply Curve (SRAS), shows that…
Q: (A positive) prevalence elasticity (of demand for self-protection) implies that when the prevalence…
A: Elasticity of demand refer to the responsiveness of the percentage change in quantity demanded to…
Q: Briefly explain the "Fisher effect" and the "Tobin effect". In particular, what does each effect…
A: Inflation is a constant rise in a general price level of Goods and services of daily use. Rate of…
Q: Explain two causes of a shift in a PPC.
A: Production Possibility Curve:- The PPC can be explained as a graphical representation which depicts…
Q: In PPP terms, GDP per capita in Country A is 3 times higher than in dollar terms. This means that if…
A: The per capita income in PPP terms is three times higher in country A in comparison to US per capita…
Q: WHAT IS THE RELEVANT ECONOMIC CONCEPT WHICH CAN BE MATCHED TO THE DISCRIPTION
A: The questions asks for the curve showing combinations of two goods that provide a consumer with a…
Q: Analyze gasoline price hike statistics in the following scenario. In June 2008, the U.S. retail gas…
A: * SOLUTION :- From the given information the calculation is given below.
Q: we at a rate of 0.95%. Second, it could borrow money from other banks at a rate of 0.55%. l funds…
A: Federal fund rate is the rate at which a bank borrows from other bank on overnight basis whereas…
Q: Two fish farmers are deciding how many fish to raise in a public access lake. The problem is that…
A: Benefit refers to the utility that a consumer derives from the consumption of an alternative. It is…
Q: Hi There! The difference between the slopes of the IS and RX curves depends only on the sensitivity…
A: The IS curve addresses different mixes of revenue and pay along which the products market is in…
Q: Cardboard boxes are produced in a perfectly competitive market. Each identical firm has a short-run…
A: Cardboard boxes are produced in a perfectly competitive market. Each identical firm has a short-run…
Q: The profit function of a good is given by the following: n = -5Q2 + 631Q – 3255 where P is the price…
A: Here we calculate the demand function of the good if variable costs are 14 per item by using the…
Q: Which good would you expect to have more elastic demand for each of the following pairs of goods,…
A: Elasticity of demand helps producers in estimating the response of consumers to any change in the…
Q: QUESTION 1 In the short run, an increase in the nominal exchange rate will net exports O A. increase…
A: Nominal exchange rate is the amount of money need to buy other currency. When nominal exchange rate…
Q: Income per person exceeds $25,000 in many countries but it is below $1,000 per person in many other…
A: The Solow Growth Model is basically refers to an exogenous economic growth model that looks at how…
Q: Consider the following economy: cd = 230 + 0.60(Y - T)- 460 d = 240 - 480/r L = 0.4Y- 540/ Y = 1,000…
A: * SOLUTION :- Given that ,
Q: Prices and wages help coordinate economic activities. Why?
A: People buy and sell commodities and services in monetary terms to satisfy their daily requirements,…
Q: Two firms compete in the market under demand P = 74 - %Q. The firms face costs equal to TC; = 200 +…
A:
Q: Kilogrammes of grain produced (thousands) 12 After the shift from A to B, labour productivity…
A: Law of diminishing marginal productivity states that the marginal production from the additional…
Q: In 2016 final sales equal $40o billion, and the change in business inventories is $100 billion. GDP…
A: Information given is:- Final sales = $400 billion Change in business inventory = $100 billion
Due to low barriers to entry,
|
Accounting profit but not economic profit. |
|
Economic profit but not accounting profit. |
|
Both economic profit and accounting profit. |
|
Neither economic profit nor accounting profit. |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In a perfectly competitive market, one of the following answers is correct with respect to the demand curve for a perfectly competitive firm. Which one? Group of answer choices The perceived demand curve is downward sloping. The perceived demand curve for a perfectly competitive firm and a monopolist look the same. When price increases, quantity demanded from the firm will also decrease. The demand curve is flat. Answer correct and explain within 40 mins will give you positive feedback.You are the manager of the local movie theatre in a small town. Running a movie has a fixed cost of $2,000, but selling an extra ticket (i.e. accommodating an extra viewer) has zero marginal cost. Below are the demand schedules for your two types of customers: Price $ Adults Teens and Seniors 10 50 9 100 8 200 7 200 50 6 300 100 5 350 150 4 400 200 3 400 300 400 300 1 400 300 If you are to charge a single price (i.e., if price discrimination is prohibited), what price would you set for a ticket to maximize profit? How much profit do you make? Price = $ Profit = $ If you were allowed to price-discriminate, what price would you charge for an adult ticket? For senior/teen ticket? How much profit do you make? Price for adults = $ Price for seniors/teens= $ Profit = $Joyce owns a gas station and monopolizes gas sales along a remote stretch of road. In February, Joyce stayed open even though she earned negative economic profits. Draw a correctly labeled graph for Joyce’s gas station during February and show each of the following. The profit-maximizing output and price, labeled QJ and PJ The average total cost curve, labeled ATC Deadweight loss, completely shaded What must have been true for Joyce to continue operating during the month of February even though she earned negative economic profit? Assume that fixed costs for Joyce’s gas station decrease. Would Joyce’s profit-maximizing quantity increase, decrease, or stay the same in February? Explain. During the month of July, demand increases so that Joyce now earns a positive economic profit. However, she realizes her profits would have been higher if she had reduced the price of gasoline. At the quantity sold in July, was marginal revenue greater than, equal to, or less than…
- You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $55 and $70. The price that you should set would range between $ and $. (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between $ and $ (Round your answers to two decimal places.)Whether in the case of clothes and cars or in the case of universities, producers spend a lot of money establishing their "brand names" because: Group of answer choices Brand names are established by driving out the competition, after which these companies charge monopoly prices. Government legislation raises the prices of brand named items with price controls, and people have no choice but to pay the higher price for brand name products. There are legal requirements for companies with brand names to spend a percentage of their budget on advertising. Brand names carry a reputation of better quality, and consumers will pay a higher price for brand names.A friend has just started up her own business. Her firm asks you how much to charge for her product to maximize profits. The demand schedule for it is given by the first two columns in the table below; its total costs are given in the third column. For each level of output, you can calculate total revenue, marginal revenue, average cost, and marginal cost. The profit-maximizing level of output can be found at the point where TR - TC is greatest, or where MR = MC, (or the last quantity where MR is still greater than MC.) What is the profit-maximizing level of output for her product? 40 How much will she earn in profits? 80 Price Quantity TC TR? MR? MC? $25.00 0 $130 $24.00 10 $275 $23.00 20 $435 $22.50 30 $610 $22.00 40 $800 $21.60 50 $1,005 $21.20 60 $1,225
- A firm with market power can divide its sales into two submarkets, the demands and marginal revenues of which are shown in the following diagram. $ Price, marginal revenue, and marginal cost (dollars) 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0 5 10 MRA 15 MRB 20 Quantity 25 DA 30 35 MC = ATC DB 40 (a) How many quantities of output should the firm produce? 1 45 Q (b) How many quantities should be sold to market A? How many quantities should be sold to market B? What price should be charged in each market? (c) Calculate the price elasticities at the prices charged in each submarket. Do these price elasticities have the expected relative magnitudes? Explain. (d) What is the amount of profit generated by the firm?Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. PRICE (Dollars per pound) 100 90 80 70 80 50 40 30 20 10 0 0 125 250 375 500 825 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Demand Because you know that competitive firms earn Supply (10 firms) True Supply (15 firms) If there were 10 firms in this market, the short-run equilibrium price of rhodium would be $ would . Therefore, in the long run, firms would False Supply (20 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…Suppose that you are a manager for a firm like EBC Brakes, which manufactures brakes for automobiles and motorcycles. Your company has two plants, one in the United States and the other in the United Kingdom. The following tables include estimated demand and marginal revenue for your brakes, along with the marginal costs at the two factories. what quantity and price maximize your firms profit? What is the profit – maximizing number of brakes produced in the U.S. plant? In the U.K. plant? Quantity Demanded (brakes per hour) Price (dollars per brake) Quantity Produced in the U.K. plant (brakes per hour) Quantity Produced in the U.S. (brakes per hour) Total Quantity Produced Marginal Cost (dollars per brake) Marginal Revenue (dollars per brake) 104 196 47 42 89 66 92 105 195 48 44 92 68 90 106 194 49 46 95 70 88 107 193 50 48 98 72 86 108 192 51 50 101 74 84 109 191 52 52 104…
- If an industry's long-run average total cost curve has a negative slope over an extended range of quantity (as shown on the diagram here), what is the most likely market structure for this industry? $ Long-run ATC Quantity The industry consists of firms of various sizes. The industry consists of many small firms. The industry is monopolistically competitive. The industry is monopolistic.Limiting Market Power: Regulation and Anti-Trust Predatory pricing threatens to keep competitors out of the market. It is a price that is so low that it will be profitable for the firm that adopts it only if a rival is driven out of the market. Debate why predatory pricing is an economic inefficiency in a perfectly competitive.Rebecca owns Louisiana Sugar Company, a manufacturer of sugar. Since there are lots of domestic manufacturers and importers of sugar and it is difficult to practice brand differentiation, the sugar industry is highly competitive. Suppose the demand for sugar increases. (1) What will be the effect on the market price and quantity of sugar in the short run and in the long run? Explain why. (2) What will happen to the economic profits of Louisiana Sugar Company in the short run and in the long run? Explain why.