The market for cucumbers faces a market demand function given by P = 2000 - 100Q(farm ) - 100Q(town). Only two firms exist in this market: Farm's farm and Town farms.
Both firms have a constant marginal cost MC = 1000.
a) Get the reaction function for both farms.
b) Illustrate both reactions functions.
c) Identify the equilibrium
d) What if they began the process of competition with
farms farm choosing to produce 1 unit. Do two steps of
reaction.
e) Will total output be higher than monopolist output?
What about price? How does competition impact firms behaviours? Is
it welfare maximizing for society?
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Why the institutional approach for understanding economic growth is important and how it overcomes some of the issues of neoclassical growth theory?
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Discuss the key reason for the market failure in Sierra Leone in year 1980
2. According to McMillan (2002), discuss how the economy can maintain good market
3. As per the article discuss the consequences on corruption on Sierra Leone during 2017-18
4. According to Cunningham (2011: 28-29), there are serious consequences for market failure by a nation, and particularly in a small and endowed country like Sierra Leone. Discuss 5 of those sconsequences that can arise due to market failure.
5. Discuss 5 recommendation as how the government of Sierra can overcome with market failure
6. Why is it often suggested that imperfect information will result in a misallocation of resources? How can such a misallocation be avoided?
7. What is the another term of impact information as used in the Case of Sierra Leone?
8. Suppose in Sierra Leone, raising taxes or borrowing are your only two choices of financing current expenditures, which would you choose, and why, if you were in charge of setting policy?
9. We have learned from this course that the real value of the debt is eroded by inflation and may be overestimated because of it and other factors. Discuss whether you feel that the debt will be a major concern during your working lifetime and retirement why or why not?
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15. Suppose the costs of a sandwich store for
one day are detailed below.
In that day they produced 40 sandwiches.
Rent: $120
Casual staff wages: $220
Building Insurance: $30
Ingredients: $160
What is their Average Variable Cost of producing 40 sandwiches?
Group of answer choices
$5.50
$9.50
$13.25
$3.75
16.
The table below shows cost data for a firm in a perfectly competitive market.
It is a constant-cost industry.
The current market price is $8.
What is the best answer for what price will be in the long run?
| Quantity | Total Cost ($) | Marginal Cost ($) |
| 0 | 10.00 | -- |
| 1 | 15.00 | 5.00 |
| 2 | 17.50 | 2.50 |
| 3 | 22.50 | 5.00 |
| 4 | 30.00 | 7.50 |
| 5 | 40.00 | 10.00 |
| 6 | 52.50 | 12.50 |
| 7 | 67.50 | 15.00 |
| 8 | 85.00 | 17.50 |
| 9 | 105.00 | 20.00 |
Group of answer choices
$10.00
$15.00
$12.50
$7.50
17.
Which of the following statements is NOT true about a single-price monopolist, facing a downward sloping demand curve, that maximises economic profits?
Group of answer choices
Price will always be higher than it would be in a competitive market.
Economies of scale must be so large that the firm has a natural monopoly.
The marginal revenue curve must always be below the demand curve.
The profit maximising quantity will always be less than the sociakky efficient quantity.
18.
Suppose that there is a permanent increase in demand for daisies. Which of the following is the most likely response in this market?
Group of answer choices
Profits will initially increase, but entry of other firms will drive profits back down again in the long run.
Profits will initially increase, and then remain at this higher level permanently.
Profits will initially increase, but exit of other firms will drive profits back down again in the long run.
Profits will initially decrease, as firms struggle to meet the demand, but profits will go back up again in the long run.
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IS the GDP the best way to evaluate the prosperity of a country? What advantages and disadvantages are there when using numbers only?
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Episode 3 reviews the mot recent events in the series, from 1990s to 2001. In the next few documentaries, we get different perspectives on events after 2001, but what does this episode suggest for the future of the global economy. Does it preview anything that you have witnessed recently in the economy. What does it teach you to watch for in our economic future?
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The demand for money is one of the most important concepts in the Liquidity Preference Theory of Interest. What are the three main components of the demand for money in this idea about how interest rates are determined?
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In your words explain what is RACE. Please make sure not to limit your answer just to the physical features. I'm interested to read your opinion on how you think the concept have been utilized at the social, economic and government levels.
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In five hundred words:
Explain the oligopoly problem , collusion strategy , Cartel with Examples and the conditions on how can they earn higher profits.
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Do any types of security actions regarding employee theft infringe on an employee's right to privacy?
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In a perfectly competitive industry, each firm has a total cost function of TC = 400 + 10q + q2 and a marginal cost curve of MC = 10 + 2q if it produces a positive quantity of output q. If a firm produces zero output it has no costs. The market price is $50. Which statement is true?]
a. Each firm produces 20 units of output; the industry will require entry to reach its long-run equilibrium.
b. Each firm is producing 25 units; as the firm is making short-run profits, the industry is not at its long-run equilibrium.
c. Each firm is producing 25 units; the firm is covering its variable costs, but making a short run loss.
d. Each firm is producing 20 units; the firm will continue producing in the short run, but will consider exiting in the long run as it is not covering its total costs of production.
e. Each firm produces 20 units of output; the market is in its long-run equilibrium.
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At a compound interest of 5% per year, the amount that $10,000 one year ago is equivalent to now is closest to: Group of answer choices less than $8,000 between $8,000-9,000 between $9,000-10,000 greater than 10,000 None of the answers is correct
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