I semi understand the concepts of the questions but not how to show the work. Graphs have been attached. PROBLEM 3. a. Determine whether the typical firms depicted below are earning profits or losses then show graphically how economic forces will cause the industry to move to a zero economic profit for the typical firm. B
Consider a tropical island economy with two sectors, souvenir manufacturing and hospitality (hotels). Both sectors are perfectly competitive, and workers are equally able and willing to work in either industry. Only foreign tourists demand souvenirs and hotel stays, so changes in the domestic labor market do not affect the produ
Assume that Smith Inc. and Wang, Inc. compete in an oligopolistic setting. They produce a homogeneous product and face the following industry demand curve: P = 20 - .01Q Where Q = Q1 + Q2 a. Each firm faces a marginal cost of $10. Find the equilibrium quantity produced by each firm in the Cournot equilibrium. What
Please see the attached file for complete Problems. Work done with the help of equation writer may not print here. 1.Less is a computer programmer who earned $35,000 in 1999. But with the new millennium, Lee decided to try a new career. He loves water sports, and in 2000 he opened a body board manufacturing business. At
Finding equalibrium price and quantity - Where Q is millions of bushels and P is price per bushel. ...
Demand and supply of wheat are: Qd=2000-1000p and Qs = -500 + 1000p Where Q is millions of bushels and P is price per bushel. How do you figure out the equilibrium price and demand. I cannot find a good explanation of the formula to use.
1. Mr. Capon is a butcher who recently raised the price of steak at his market from $1:50 a pound to $2:00 a pound. Correspondingly his sales dropped from 200 pounds per day to 100 pounds per day. Is the demand for steak at Capon's market elastic or inelastic? Explain. (show all works please) Given this circumstance, advise Mr.
Assume the commodity market and the money market for an economy are described by the following IS and LM curve. IS: Y = 11,000 - 250r; LM: Y = 8,000 + 250r. a. Compute the equilibrium interest rate (r) and equilibrium real output (Y). b. Suppose that fiscal policymakers raise taxes and cut government spending. As a resu
What do economists mean by the term "imperfectly competitive markets"? How do market prices differ between perfectly and imperfectly competitive markets?
Purpose of Assignment - The purpose of this assignment is to analyze how an event will influence the market equilibrium. Background: Suppose the weather in Florida was extremely cold one winter. This event would affect the market for coffee in Florida, causing the demand curve to shift to the right. Remember an event that c
Supply and Demand Analysis. a) Illustrate the market for a good by drawing the industry's demand and supply curves. On the graph, identify the equilibrium price and the equilibrium quantity. Be sure to label all axes and curves. b). If the market price is less than the equilibrium price, what is the relationship of quant
Please see attached. Thank you!
Q1) Demand for milk is Q=1000-5p long run supply function for milk is Q=4p-80. if government's climate change policy is based on polluters pays tax and it decides to tax milk. a)how will this tax affect equilibrium in the milk market? b)how would the burden be shared between buyers and sellers of milk? c)what is the excess b
Gus the cab driver rents a cab and pays for gas. In each of the following circumstances, describe the (A) short-run effects & (B) long-run effects on the price and quantity of rides Gus offers.
Part I Gus the cab driver rents a cab and pays for gas. In each of the following circumstances, describe the (A) short-run effects & (B) long-run effects on the price and quantity of rides Gus offers. (Use Graphs to aid understanding in A & B) Question 1 : The city imposes a $1 excise tax on cab rides, but exempts Gus fr
Suppose you are an economic consultant for a large company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities.
A. Suppose you are an economic consultant for a large company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities. The company has shops in the major cities around the country and also sells by mail order catalog. As an economic consultant, you have estimated the elasticity of demand for sto
Please see the attached file. -In everyday discussions, people tend to talk about monopoly firms "setting high prices," but in this chapter we have talked about choosing a profit-maximizing level of output. Are these two approaches saying the same thing? What kind of rule would a monopoly follow if it wished to choose a pro
In choosing whether to deliver to six or seven neighborhoods, Pizza Spinners has to take into account not only its own costs, but also the delivery area response of its competitor Harry's Pizzeria.
Hello, Please review attached document. I need help with this questions, I am finding it hard to solve the game theory questions. Thanks in advance Jummy Game Theory 1a. In choosing whether to deliver to six or seven neighborhoods, Pizza Spinners has to take into account not only its own costs, but also the delive
2. A firm produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers "a" and "b", with demand functions: Pa = 10 (1/10) Q Pb = 18 - (1/5) Q, respectively. 2.1. Calculate marginal revenue for each market. 2.2. For each market, graph demand, marginal cost and marginal revenue, and sh
The primary difference between a change in supply and a change in the quantity supplied is a. change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve b. Both a change in quantity supplied and a change in supply are movements along the supply curve, only in diffe
For the last 70 years the U.S. government has used price supports to provide income assistance to American farmers.
For the last 70 years the U.S. government has used price supports to provide income assistance to American farmers. At times the government has used price floors, which it maintains by buying up the surplus farm products. At other times, it has used target prices, a policy by which the government gives the farmer an amount equal
Auto sales data show that as the price of gasoline increased significantly recently, fewer people bought SUVs.
Please provide explanations and show work. Market Equilibrium Analysis Question 1: Auto sales data show that as the price of gasoline increased significantly recently, fewer people bought SUVs. Based on this economic fact, please address the following questions: a. Determine the market in question (i.e., which ma
If the price of good x falls, explain how the consumers relative consumption of the two goods change.
Suppose that, from an initial consumer equilibrium position, the price of good X falls while the price of good Y remains the same. Using indifference curve analysis, explain how and why the consumer's relative consumption of the two goods will change.
The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Now suppose a commodity subsidy of $20 is given for each unit of production. In this new distorted market equilibrium, compute the following: 1. equilibrium demand price 2. equilibrium supply price 3. equilibrium quantity 4. the additional
1) Consider the city of Silver Spring, where zoning laws limit the number of video arcades to one. The city's only video arcade has a price of $0.50 per game with an average cost of $0.34 per game. Suppose that the city eliminates its restrictions on video arcades, allowing additional firms to enter the market, "Each additional
All firms in a competitive industry have long-run total cost curves given by LTC = Q^3 - 10Q^2 + 36q, and LTC = q^2 + 4q where Q is the firm's level of output. I am having trouble finding the industry's long term equilibrium price as well as the long term equilibrium output level for each LTC.
Y = 1550 - 2400i = 600 + 3000i 950 = 5400i i = 0.176 substitute into IS: Y= 1550 - 2400*0.176 = 1127 Then substitute Y and i into C and I: C= 300+.3(Y-T) = 300 + 0.3 * (1127 - 250) = 563.1 I= 250+.2Y-1200i = 250 + 0.2* 1127 - 1200 * 0.176 = 264.2 3. Then assume M/P rises to 1890 and solve for the new Y and i. h
1) a perfectly competitive firm a) sells a product that has perfect substitutes b) has a perfect inelastic demand c) has a perfectly elastic supply d) all of the above 2) In the short run, a perfectly competitive firm____ earn an economic profit and ____ incur an economic loss a) migh
In monopoly with Marginal Cost of $8 per unit, zero fixed cost, inverse demand function of P=38-Q what would be the profits in equilibrium: $345, $225, or $120. Please show how this was solved.
9 The profits of Du Pont de Nemours and Company in 1997 were about $2.4 billion. Does this mean that Du Pont's economic profit equaled $2.4 billion? Why or why not? 18 If the demand curve for wheat in the United States is P = 12.4 - 4QD where P is the farm price of wheat (in dollars per bushel) and QD is the quantity of whe
Please help with this problem. I'm not looking for a final answer, but I am definitely looking for the mathematical approach used. Thank you! MB1=150-Q1 is the marginal willingness to pay, or marginal benefit, function for Consumer 1 who consumes Q1 of the commodity Q per month. For example, when Q1=1, MB=149, meaning that th
Please give your answers in writing and with use of relevant diagrams and indicate what will happen to the price and the quantity of equilibrium sales under each circumstance. Demand for refrigerators is often described as cyclical and very sensitive to refrigerator prices and interest rates. Given these characteristics, des