All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
essentials of economics

Questions and Answers of Essentials of Economics

A student makes the following comment:I can understand why a perfectly competitive firm won’t earn a profit in the long run because it charges a price equal to marginal cost.But a monopolistically
Does the fact that monopolistically competitive markets are not allocatively or productively efficient mean that there is a significant loss in economic well-being to society in these markets? In
Why is a monopolistically competitive firm not allocatively efficient?
What are the implications of monopolistically competitive firms having excess capacity?
Are long-run profits equal to zero only when firms charge a price equal to their marginal cost, and produce an average total cost-minimizing quantity of output? Briefly explain.
An article in the Wall Street Journal reported that Western European brewers such as Heineken, Carlsberg, and Anheuser-Busch InBev are increasing their production and marketing of nonalcoholic beer.
Michael Korda was, for many years, editor-in-chief at the Simon & Schuster book publishing company. He has written about the many books that have become bestsellers by promising to give readers
[Related to Solved Problem 13.3 on page 511] In 2015, analysts at the Goldman Sachs investment bank were optimistic that Buffalo Wild Wings would increase its profit over the next few years. They
[Related to the Making the Connection on page 510]An article in the New York Times describes Chipotle as “the restaurant chain that has come to symbolize the tastes of the millennial generation”
Competition from Amazon and other online booksellers has resulted in some brick-and-mortar bookstores suffering losses. According to a news story, over the past 9 years, the number of bookstores in
[Related to the Don’t Let This Happen to You on page 508]A student remarks:If firms in a monopolistically competitive industry are earning an economic profit, new f irms will enter the industry.
Suppose Angelica opens a small store near campus, selling beef brisket sandwiches. Use the graph below, whichshows the demand and cost for Angelica’s beef brisket sandwiches, to answer the
[Related to the Chapter Opener on page 501] Chipotle Mexican Grill restaurants have been a very popular “fast-casual”dining option—with better food choices than fast-food restaurants like
Would a perfectly competitive market prove more stable than a monopolistically competitive one in the long run?What happens to their profits in the long run?
What is the difference between zero accounting prof it and zero economic profit?
Why does the entry of new firms cause the demand curve of an existing firm in a monopolistically competitive market to shift to the left and to become more elastic?
What effect does the entry of new firms have on the economic profit of existing firms?
Use the following graph for Elijah’s Burgers to answer the questions.a. If Elijah produces at the prof it-maximizing level of output, how much is his total revenue? How much is his total cost?
In 1916, Ford Motor Company produced 500,000 Model T Fords, at a price of $440 each. The company made a profit of $60 million that year. Henry Ford told a newspaper reporter that he intended to
William Germano previously served as the vice president and publishing director at the Routledge publishing company.He once gave the following description of how a publisher might deal with an
[Related to the Chapter Opener on page 501] Vapiano is a German fast-casual restaurant chain, similar to America’s Chipotle, but serving fresh, made-to-order pizzas and pasta dishes. Assume Vapiano
[Related to Solved Problem 13.2 on page 506] Suppose a firm producing table lamps has the following costs:Ben and Jerry are managers at the company, and they have this discussion:Ben: We should
Josef manages a kebab shop in Sydney’s central business district and has the following information on the shop’s demand and costs:a. To maximize profit, how many kebabs should Josef sell per
Do you think a monopolistically competitive firm would be able to make a prof it by producing a quantity that ensures that its marginal revenue equals its marginal cost?
Stephen runs a pet salon. He is currently grooming 125 dogs per week. If instead of grooming 125 dogs, he grooms 126 dogs, he will add $68.50 to his costs and $60.00 to his revenues. What will be the
Why doesn’t a monopolistically competitive f irm produce where P = MC, as a perfectly competitive f irm does?
Sally runs a vegetable stand. The following table shows two points on the demand curve for the heirloom tomatoes she sells:a. What would Sally’s marginal revenue be from lowering the price of
In the graph on the following page, consider the marginal revenue of the eleventh unit sold. When the f irm cuts the price from $5.00 to $4.75 to sell the eleventh unit, what area in the graph
Is it possible for marginal revenue to be negative for a firm selling in a perfectly competitive market? Is it possible for marginal revenue to be negative for a firm selling in a monopolistically
Suppose you are analyzing a market with a large number of active firms. What would you look for in order to determine whether those firms face a downward sloping demand curve or a horizontal demand
Complete the following table, which shows the demand for snow skiing lessons per day: Snow Skiing Total Lessons per Price Revenue Day (Q) (P) (TR=PxQ) (AR = = Average Revenue TR T) (MR= Marginal
NIVEA introduced a new anti-perspirant and claims that it has the “highest concentration and most advanced anti-perspirant ingredients to work for 48 hours to protect against thermal sweating and
There are over 500 wineries in the Loire Valley, France.Assuming the industry is perfectly competitive and the industry is monopolistically competitive, describe how consumers would react if one of
With a downward-sloping demand curve, why is average revenue equal to price? Why is marginal revenue less than price?
Think about the various flavors of chocolate blocks: dark, mint, ginger, and chilli. Suppose the price of all mint chocolate blocks increases. Would this affect the sales of that type of chocolate?
An article in the Wall Street Journal discusses the visual effects industry, which is made up of firms that provide visual effects for f ilms and television programs. The article notes:
[Related to Solved Problem 12.6 on page 488] Sony suffered losses for a decade selling televisions before finally earning a profit in 2014. Given the strong consumer demand for plasma, LCD, and LED
[Related to Solved Problem 12.6 on page 488] Suppose you read the following item in a newspaper article, under the headline “Price Gouging Alleged in Pencil Market”:Consumer advocacy groups
[Related to Solved Problem 12.6 on page 488] Do you think it is reasonable to assume that consumers would be able to grasp the benefits of new technologies in all markets?Briefly explain the reasons
Suppose that at the beginning of a year, the price of corn is $3.80 per bushel and 14 billion bushels are harvested.There are approximately 400,000 corn farmers, so the average output per farmer is
According to an article in the Wall Street Journal, as a result of U.S. consumers increasing their demand for beef, in 2015 world beef prices increased. For example, according to the article,
Suppose that each of the following is true: (1) The laptop computer industry is perfectly competitive and that the firms that assemble laptops do not also make the displays, or screens; (2) the
Suppose the market for glasses is in long-equilibrium at a price of $50 per pair and at a quantity of 10,000 pairs sold per year. If the demand permanently increases, use a graph to illustrate the
[Related to the Making the Connection on page 487]According to a news story, overcapacity is the main reason for such low rates in case of bulk carriers. When the financial crisis struck, the demand
[Related to the Making the Connection on page 487] Is it possible to define the length of a strategy in a perfectly competitive market in the long run? After how many years is it reasonable to assume
According to an article in the Wall Street Journal, rapid growth in consumer demand for natural and organic food helped make the Whole Foods supermarket chain very profitable. But according to that
In panel (b) of Figure 12.9 on page 484, Sacha Gillette reduces her output from 40,000 to 25,000 dozen eggs when the price falls to $1.75. At this price and this output level, she is operating at a
[Related to the Chapter Opener on page 465] The following questions are about long-run equilibrium in the market for cage-free eggs.a. As described in the chapter opener, was the market for cage-free
A study analyzed a pharmaceutical firm’s costs to develop a prescription drug and receive government approval.An article in the Wall Street Journal describing the study noted that included in the f
Explain the implications of economic profit and accounting profit on the long-run equilibrium of a perfectly competitive market.
[Related to Solved Problem 12.4 on page 480] According to an article in the Wall Street Journal, in 2007 the insurance company AXA Equitable signed a long-term lease on 2 million square feet of
[Related to Solved Problem 12.4 on page 480] Suppose you decide to open a copy store. You rent store space(signing a one-year lease to do so), and you take out a loan at a local bank and use the
According to an article in the New York Times, interest payments on bank loans make up more than half the costs of a typical solar panel manufacturer. The owner of a firm that imports solar panels
Matt Rafferty produces hiking boots in the perfectly competitive hiking boots market.a. Fill in the missing values in the following table.b. Suppose the equilibrium price in the hiking boots market
Ed Scahill produces table lamps in the perfectly competitive desk lamp market.a. Fill in the missing values in the following table.b. Suppose the equilibrium price in the desk lamp market is $50. How
[Related to the Making the Connection on page 477]Suppose that the price of cut wood decreases, lowering the cost of furniture. What effect would this have on the U.S. furniture industry, in general,
An article in the Wall Street Journal discussed the financial results for BlackBerry, the smartphone and software company: “Revenue tumbled 32% from a year earlier to $658 million in the quarter
[Related to the Don’t Let This Happen to You on page 476]A student guesses the quantity at which a firm maximizes profits looking at the graph below: “I think that the firm maximizes profits by
[Related to Solved Problem 12.3 on page 474] Review Solved Problem 12.3 and then answer the following: Suppose the equilibrium price of basketballs falls to $2.50. Now how many basketballs will Andy
[Related to Solved Problem 12.3 on page 474] Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows:a. If the current equilibrium price in
Draw a graph showing a firm that is operating at a loss in a perfectly competitive market. Be sure your graph includes the f irm’s demand curve, marginal revenue curve, marginal cost curve, average
In Table 12.3 on page 471, what are Farmer Parker’s fixed costs? Suppose that his fixed costs increase by $10. Will this increase change the profit-maximizing level of production for Farmer Parker?
Refer to Table 12.3 on page 471. Suppose that the marginal cost of wheat is $0.50 higher for every bushel of wheat produced. For example, the marginal cost of producing the eighth bushel of wheat is
Refer to Table 12.3 on page 471. Suppose the price of wheat falls to $5.50 per bushel. How many bushels of wheat will Farmer Parker produce, and how much profit will he make? Briefly explain.
A student argues: “To maximize profit, a firm should produce the quantity where the difference between marginal revenue and marginal cost is the greatest. If a firm produces more than this
Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC.
Explain the relationships between the price of a product in a perfectly competitive market, the average revenue of a firm in that market, and its marginal revenue.
In 2015, some beer drinkers f iled a lawsuit against Anheuser-Busch, the brewer of Beck’s beer. The beer drinkers claimed that Beck’s was marketed as an authentic German beer but was actually
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School: Each student in the class was given large amounts of information about a
[Related to the Don’t Let This Happen to You on page 468]Explain whether you agree with the following remark:In a perfectly competitive market each f irm faces a horizontal demand curve. This means
The late Nobel Prize–winning economist George Stigler once wrote, “the most common and most important criticism of perfect competition … [is] that it is unrealistic.”Since few firms sell
New Balance produces sneakers. It needs 50 workers and $300 to produce 100 sneakers per week. Suppose that both wage rate and the maintenance costs of machineries triples.a. Draw a new isocost line
[Related to the Making the Connection on page 458]If Cade Massey and Richard Thaler are correct, should the team that has the f irst pick in the draft keep the pick or trade it to another team for a
In Brazil, a grove of oranges is picked using 20 workers, ladders, and baskets. In Florida, a grove of oranges is picked using 1 worker and a machine that shakes the oranges off the trees and scoops
A company sells eggs for $1,000 per week and hire workers at $500 per week. The company can minimize the cost of producing 100 eggs by breeding 20 chickens and using 5 workers, at a total cost of
Use the following graph to answer the following questions about Jill Johnson’s isoquant curve.a. Which combination of inputs yields more output:combination A (3 ovens and 2 workers) or combination
Draw an isoquant–isocost line graph to illustrate the following situation and the change that occurs:Jill Johnson can rent pizza ovens for $2,000 per week and hire workers for $1,000 per week.
[Related to Solved Problem 11A.2 on page 457] Draw an isoquant–isocost line graph to illustrate the following situation: Jill Johnson can rent pizza ovens for $200 per week and hire workers for
[Related to Solved Problem 11A.2 on page 457] Consider the information in the following table for Jill Johnson’s restaurant:Briefly explain whether Jill is minimizing costs. If she is not
[Related to Solved Problem 11A.1 on page 455] India has less arable land per farmer than the United States.As a result, the price of labor in India is less relative to the price of land than it is in
Use the following graph to answer the questions.a. If the wage rate and the rental price of ovens are both $100 and total cost is $2,000, is the cost-minimizing point A, B, or C? Briefly explain.b.
A company called Avis can rent cars for $500 per week and hire private drivers for $250 per week. It is currently using 20 cars and 10 private drivers to offer its services and has a total cost of
What is an isocost line? What is the slope of an isocost line?
In September, 2015, tough export markets and weaker consumer spending continued to take their toll on factories in Britain, prompting the first job losses for the sector in more than two years,
[Related to the Don’t Let This Happen to You on page 442]More than one in six workers in Britain’s steel industry is facing the axe after Tata Steel confirmed it was cutting 1,200 jobs. Tata,
Due to the inimitable manufacturing processes of 3D printing, people now have the ability to innovate products from the inside out. The process cannot be mimicked using traditional manufacturing
[Related to the Making the Connection on page 441]Suppose that Henry Ford had continued to experience economies of scale, no matter how large an automobile factory he built. Discuss what the
[Related to Solved Problem 11.6 on page 439] At one point, Time Warner and the Walt Disney Company discussed merging their news operations. Time Warner owns Cable News Network (CNN), and Disney owns
[Related to Solved Problem 11.6 on page 439] An article in the Wall Street Journal discussed the proposal of a merger between Canadian Pacific Railway Ltd. and Norfolk Southern Corporation. The
[Related to Solved Problem 11.6 on page 439] Suppose that Jill Johnson has to choose between building a smaller restaurant and a larger restaurant. In the graph on the next page, the relationship
An article in the Wall Street Journal described the Chinese automobile industry as “a hodgepodge of companies,”most of which produce fewer than 100,000 cars per year.Ford Chief Executive Alan
What are economies of scale? What are four reasons that firms may experience economies of scale?
Explain how the events listed in (a) through (d) would affect the following costs of a firm producing cups:1. Marginal cost 2. Average variable cost 3. Average fixed cost 4. Average total costa.
[Related to the Chapter Opener on page 423] We saw in the chapter opener that some colleges and private companies have launched online courses that anyone with an Internet connection can take. The
In the ancient world, a book could be produced either on a scroll or as a codex, which was made of folded sheets glued together, something like a modern book. One scholar has estimated the following
One description of the costs of operating a railroad makes the following observation: “The fixed … expenses which attach to the operation of railroads … are in the nature of a tax upon the
(This problem is somewhat advanced.) Using symbols, we can write that the marginal product of labor is equal to Q> L. Marginal cost is equal to TC> Q. Because fixed costs by definition don’t
The following information is provided to you: current output amounts to 150 units and the corresponding total cost is €1,500. Should production increase to 151 units, total cost would rise to
You possess the following information: current output of a firm amounts to 150 units and the corresponding total cost is €1,500. Should production of the firm increase to 151 units, the total cost
[Related to Solved Problem 11.4 on page 435] Santiago Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the number of machines he leases

Showing 1400 - 1500 of 6252

First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved