Question

In a certain town, everyone spends a constant amount
of money on sweets,

whatever its price. The sweets are produced at an average
cost

constant by n equal companies. Show that if a> 0 then there is a
Cournot equilibrium, but if a = 0 then there is no such
equilibrium.

Answer #1

equilibrium mean economic situation where supply and demand for certain good and service in marketand are same or we can say that equal. And average cost are the production cost per uint of output divided by the total cost

cornot equilibrium is economic model assumption which choose the output quantity. if a> is greater then zero mean having greater production of quantity that is why there is corunot equilibrium and if a=0 mean average production is zero that is why it is not in equilibrium. the main concept of counot is more quantities more profit.

In a certain town, everyone spends a constant amount
of money on sweets,
whatever its price. The goodies are produced at an average
cost
constant to n equal companies. Show that if a> 0 then
there is a Cournot equilibrium, but if a = 0 then there is no such
equilibrium.

1. All else constant, an increase in the price of labor would
cause the total amount of output that can be produced with a fixed
amount of spending to ________. This would result in a movement to
a ________ isoquant.
increase; lower
decrease; lower
decrease; higher
increase; higher
2. All of the following are strategies a firm with market power
can adopt to increase it profits over
time except:
setting price equal to the marginal costs of production.
erecting barriers to...

1. A monopolist is currently selling at a price of $5
with constant ATC equal to $3. If quantity demanded increases by
three units for each one cent reduction in the price, the welfare
(efficiency) loss due to monopoly is:
A. $1,600
B. $2,000
C. $900
D. $600
E. $6,000
2. If elasticity of demand is LESS than ONE where a
certain monopolist is currently operating
then:
A. it should increase production
B. the Marginal Revenue curve must be rising...

Table 11-1
14. Consider the town of Springfield with only three residents,
Sophia, Amber, and Cedric. The three residents are trying to
determine how large, in acres, they should build the public park.
The table below shows each resident’s willingness to pay for each
acre of the park.
Acres
Sophia
Amber
Cedric
1
$10
$24
$6
2
8
18
5
3
6
14
4
4
3
8
3
5
1
6
2
6
0
4
1
7
0
2
0...

32. If the company E-bikes R US is a price taker, then its
marginal revenue will always equal
A) price.
B) total cost.
C) zero.
D) one.
33. The company E-bikes R US operates in a competitive market. If
E-bikes R US is in
short-run equilibrium, then
A) profits equal zero.
B) it will not operate at a loss.
C) an increase in its fixed cost will have no effect on
profit.
D) an increase in its fixed cost will...

Problem 21-01A
National Corporation needs to set a target price for its newly
designed product M14–M16. The following data relate to this new
product.
Per Unit
Total
Direct materials
$22
Direct labor
$38
Variable manufacturing overhead
$11
Fixed manufacturing overhead
$1,215,000
Variable selling and administrative expenses
$ 9
Fixed selling and administrative expenses
$ 1,215,000
These costs are based on a budgeted volume of 81,000 units produced
and sold each year. National uses cost-plus pricing methods to set
its target...

37)
Price per Constant-
Quality of X
Quantity of
X Demanded
per Time Period
Quantity of
X Supplied
per Time Period
$10
0
150
8
20
120
6
40
90
4
60
60
2
80
30
0
100
0
Based on the table above, if other influences remain constant and
the market is free to adjust, a stable equilibrium price will be
established at
Select one:
a. $4.
b. $6.
c. $8.
d. $2.
A shortage will occur when
Select...

1. Consider an economy that produces and consumes bread and
automobiles. In the table below are data for two different
years:
Year 2010
Year 2025
Price of an automobile
$50,000
$60,000
Price of a loaf of bread
$10
$20
Number of automobiles produced
100
120
Number of loaves of bread produced
500,000
400,000
Using the year 2010 as the base year, compute the following:
nominal GDP, implicit price deflator and the CPI.
2.
Assume that GDP (Y) is 5,000. Consumption...

Answer the following and state your reasoning for each
answer.
1) If marginal cost is constant, what happens to a market if it
evolves from perfect competition to monopoly without any change in
the position of the market demand curve or any change in costs?
A consumer surplus increases, producer surplus increases, and
deadweight loss is not created.
B consumer surplus decreases, producer surplus decreases, and
deadweight loss is created.
C consumer surplus increases, producer surplus decreases, and
deadweight loss...

Assume that consumers view tax preparation services as
undifferentiated among producers, and that there are hundreds of
companies offering tax preparation in a given market. The current
market equilibrium price is $120. Jojo’s Tax Service has a daily,
short-run total cost given by TC = 100 + 4Q2. Answer the
following questions:
How many tax returns should Jojo prepare each day if her goal is
to maximize profits?
How much will she earn in profit each day?
A perfectly competitive...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 29 minutes ago

asked 32 minutes ago

asked 32 minutes ago

asked 34 minutes ago

asked 34 minutes ago

asked 47 minutes ago

asked 47 minutes ago

asked 48 minutes ago

asked 50 minutes ago

asked 54 minutes ago

asked 54 minutes ago