1. Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table (see attachment). a) What output will the firm choose? b) What will be the monopolistic competitor's average fixed cost at the output it chooses?
I have changed the values and need the model to plug my numbers in. Please solve with explanations. 1. The inverse demand curve for a Stackelberg duopoly is P = 5,000 - 3Q. The leader's cost structure is CL(QL) = 1250 + 10QL. The follower's cost structure is CF(QF) = 250 + 20QF. a. Determine the reaction fu
Answer based on the two figures below. Suppose that all the firms in a given market can be characterized by the cost structure illustrated in the figure on the left. If market demand is an indicated in the figure on the right, the number of firms required to support long run equilibrium is (unless the answer is: "a number gre
In a competitive market with a downward sloping demand curve, a tax that increases the fixed cost of every firm will: a) reduce the number of firms supporting long run equilibrium b) increase the long-run equilibrium price. c) not cause the number of firms supporting long-run equilibrium to change d) answers a and b
Under profit-maximizing equilibrium, which of the following will not be equal to the other three? a) the marginal revenue product of input X. b) The price of input X. c) the marginal cost of input X. d) the marginal product of input X. e) all will be equal.
Subject: Long Run,Short Run,Law of diminishing Marginal return Details: Define Short Run and Long Run. Discuss three types of decisions that firm have to take in Long Run. State the Law of Diminishing Marginal Returns. Differentiate between Diminishing Returns to Factors and Diminishing Returns to Scale.
Two would-be wine makers (Mr. Ripple and Poor Richard) are contemplating entering the low end wine market in the country of Zuba. Two types of wine are being considered by both?Brown Bag and Street Corner. Both wines are franchised and the franchisees are offering the rights to bottle their wine in Zuba in an open English aucti
A macroeconomic model of Econoland can be summarized as follows: C = 100 + 0.5(Y - T) I = 0.25 Y - 500(r) G0 = 300 T0 = 100 X0 = 200 M0 = 200 M D = 10Y - 20,000(r) M S0 = 200 Part a - Derive the equation for the IS Schedule Part b - Derive the equation for the LM Schedule Part c - Calculate the equilibrium interes
Suppose that the aggregate consumption function is C = 100 + 0.80(Y - T), taxes are T = 10 + .05Y, imports are M = 5 + 0.10Y, investment is $400, government expenditures are $200, and exports are $100. Part a - Calculate Equilibrium Income (Y) Part b - Calculate Consumption (C) Part c - Calculate Taxes (T) Part d - Calc
Suppose the Fed wishes to use monetary policy to close an expansionary gap. a. Should the Fed increase or decrease the money supply? b. If the Fed uses open-market operations, should it buy or sell government securities? c. Determine whether each of the following increases, decreases, or remains unchanged in the sort ru
The long run total cost curve of a typical firm in the perfectly competitive widget industry is: TC = 6,000q - 200q2 + 2q3 where q is the output in units of widgets produced by the firm. The long run demand curve for widgets is estimated to be:
To find equilibrium GDP in the Keynesian model of a closed economy, we add to the C + I schedule: A) government expenditures on goods and services plus government transfer expenditures. B) government expenditures on goods and services minus tax receipts. C) government expenditures on goods and services if financed by
1.What is economics all about OR what does the study of economics involve? How is the need to choose related to concept of cost? 2a) . Define Diminishing Marginal Utility b) . Given two goods X and Y, how does a consumer achieve equilibrium? c) What happens to consumer equilibrium if the price of one of the commodities fa
7. (9-6) The Deering Manufacturing Company's short run average cost function in 1999 is AC=3+4Q, where AC is the firm's average cost (in dollars per pound of the product), and Q is its output rate. a. Obtain an equation for firm's short run total cost function. b. Does the firm have any fixed costs? Explain? c. If the price o
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Suppose that the demand for labor by firms is given by L = 1000 - 100W and the supply of labor from workers is given by L = -400 + 100W, where L represents the number of workers and W is the wage in this labor market. a. What are the equilibrium levels of W and L in this labor market? b. Suppose the government imposes an
Review final for economics 201
Explain using an appropriate diagram how and through what mechanisms would each of the following affect the level of aggregate demand? i)A sharp decline in business confidence. ii) An increase in the marginal propensity to consume iii) A fall in world income (draw a separate diagram for each part of the question)
Suppose the NJ government decides to impose a $1,000 per student tax on colleges--each college has to pay $1,000 for each student enrolled. The supply curve of college education (before tax) is Qs = 40P, and the demand curve is Qd = 400,000 - 10P. a. Find the pre-tax equilibrium price and quantity. b. Find the equilibrium
The following equations describe an economy: C = C + cYD, 0<c < 1, YD = Y-tY, I = I - bi, b > 0 G = G X = X Q = mY 0<m<1 L = kY - hi, k,h >0 M/P = M/P _ If C=100,
Solve the following Problem: C = 10 + 0.8(Yd), Yd = Y - T, T = 10, I = 20, and G = 30 Where C is the consumption, Yd is the disposable income, T is the tax, I is the investment and G is government spending. 1- Find mathematically and illustrate graphically the Aggregate Demand (AD) function.