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- There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through a.economies of scale b.government protection c.control of an important input . b. ABC’s market power a.does b.does not guarantee that the firm makes an economic profit.6 If it was possible for one company to gain ownership control of all uranium processing plants in the United States, then what would be the likely result? The factors of market demand and supply would set the price. BO The company would strive to reach efficiencies only they know how to achieve. CO The company would set up barriers to entry to discourage competition. DO The government would initiate deregulation to ensure the company's monopoly.Figure 1 MC Revenue and cost (dollars per unit) MR ATC AVC 24 20 14 12 8. 55 100 150 200 Quantity What type of market structure does this graph show? How can you tell? ***** *****
- 10 Monopoly profits do NOT serve any "socially useful" purpose because: Select one: E of a. Each of these is a reason why monopoly profits are not socially useful. b. the monopolist's profits are not "competed away". C. the monopolist's profits do not incentivize new investment and a reallocation of resources into the market. d. entry barriers prevent new firms from entering the market to compete with the monopolist.19 ns circus tickets and the cost for producing the circus. Price and cost (dollars per unit) 20 18 16 14 12 10 8 6 4. 2 0 100 200 MR The circus's economic profit is $ $1600 Alt Text: Big Top Circus ATC Pizza Hut - Game... MC D 300 400 500 Quantity (units per day) Get the Chrome E.. Suppose Big Top charges a single price for all tickets. Big Top's profit maximizing price is $ $6 per ticket and output 100 units per day tickets.8 7 2 Marginal revenue MC-AC (A) $920 (A) Seniors B) $580 Senior demand C) $300 D) $280 200 300 Number of meals 10 8 2 Figure 7.6 (B) Non-Seniors Marginal revenue Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. Compared to the profit under the single price policy, how much additional profit does the restaurant earn under the senior discount policy of a $7 senior price and a $10 non-senior price? MC-AC Non-Senior demand 320 380 Number of meals
- 1."In a long run, a profit-maximizing firm would never knowingly market unsafe products. However, in the short run, unsafe products can do a lot of damage" Discuss this statement.< The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $100 per unit per day and the fixed cost of the capital is $2000 per day. Click the icon to view the table. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) 100 20 40 60 80 100 120 140 40 60 300 80 800 1370 1570 1630 1670 300 800 TFC $2000 1370 $ 2000 $ 2000 TVC $2000 Complete the last four columns of the table. Units of Labour (per day) Total Output (per day) 20 100 $ 4000 $ 6000 $ 2000 $ 8000 $2000 $10000 TFC TC $ 4000 $6000 TVC $ 8000 2000 $12000 $14000 $10000 $2000 $14000 $16000 $12000 TC MC MC $10 4 $3.50 $10 4 AFC AFC $20 $2.5 AVC $6.67 $ 13.33 $ 1.46 AVC $20 $7.5 $5.84 ATC ATC $40…Table 15-4 Price per Dose $80 72 Quantity Demanded (dose) 0 1 2 3 4 5 6 24 7 16 8 Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 15-4 shows the demand and the total cost schedule for the firm. 64 56 48 40 32 Total Cost of Production (dollars) $80 Refer to Table 15-4. What is the amount of Shakti's profit? $68 $72 $124 $192 82 88 100 124 164 208 268 340
- The following graph depicts the costs incurred by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the same product. Use the graph to answer the following questions- Price/Cost per egg MC 12 ATC 8 MR3 AVC 6. MR2 MR1 Quantity 100 200 300 400 a)At what price will Rahim try to minimize loss by selling eggs in the market? b)At what price will there be a break-even point?1.The wise use or utilization of money and time. a. Eng'g. Economics b. Business c. Investment d. Economics e. none of these 2. This occurs in a situation where a commodity or a service is supplied by a number of vendors and there is nothing to prevent additional vendors to enter C. Monopoly d. Elastic demand e. none of these the market. a. Perfect competition b. Oligopoly 3. Is the simplest fom of business organization. a. Sole proprietorship b. Partnership C. Enterprise d. Corporation e. none of these 4. The quantity of a certain commodity that is bought at a certain price at a given place and time. C. Price a. Demand b. Barter d. Profit e. none of these 5. The quantity of a certain commodity that is offered for sale at a certain price at a given place and time. a. Demand b. Supply C. Price d. Profit e. none of these 6. A contractor has a job which should be completed in 100 days. At present he has 80 men on the job and it is estimated that they will finish the in 130 days. Of the 80…Question 33 A major reason why the market equilibrium for a manufactured good may not be efficient is the industry is producing too little output. O there is likely to be a positive externality associated with production. O the industry is likely to be a monopoly. O there is too much government regulation. O property rights are not well defined.