assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. then in equilibrium the output effect

Answers

Answer 1

In an oligopoly market, each firm takes the production level of its competitors as given. This means that firms are not able to form a cartel and collude to set prices and production levels.

Therefore, the equilibrium outcome is determined by each firm's individual decision to maximize their own profits.

At equilibrium, the output effect is that the firms in the oligopoly market will produce the quantity that is most profitable for them. This quantity of output will be less than the optimal quantity of output for the market as a whole due to the lack of coordination between the firms. As a result, the market will produce an output level that is lower than the socially optimal output level, leading to a deadweight loss from the inefficiency of the market.

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Related Questions

what can netflix, apple, and walmart incorporate that could improve their brand on a global level.

Answers

The ways to improve their brand on a global level are:

Netflix: Content Localization and Original Content Investment.Apple: Innovation and Differentiation and User Experience and Ecosystem IntegrationWalmart: E-commerce and Digital Transformation and Sustainability Initiatives.

Here are some potential strategies that Netflix, Apple, and Walmart could consider to improve their brand on a global level:

Netflix:

Content Localization: Netflix could invest more in localizing its content to cater to the preferences and cultural nuances of different regions. Original Content Investment: Continuing to invest in high-quality original content across different genres and languages can help Netflix stand out in the competitive streaming market.

Apple:

Innovation and Differentiation: Apple has a strong reputation for innovation, but continued investment in research and development is crucial to maintain its competitive edge. User Experience and Ecosystem Integration: Apple could focus on enhancing the overall user experience by further integrating its products and services within its ecosystem.

Walmart:

E-commerce and Digital Transformation: As the retail landscape continues to evolve, Walmart could further invest in e-commerce capabilities and digital transformation. Sustainability Initiatives: Demonstrating a strong commitment to sustainability can significantly enhance Walmart's brand reputation.

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Which two are segments in a Marketing Plan? (Choose two)

Demographic


Psychographic


Income


Loyalty

Answers

The two segments that are part of a Marketing Plan are: A. Demographic and B. Psychographic segments.

A marketing plan details a company's target market, the brand's value proposition, the marketing campaigns, and the evaluation metrics for assessing if marketing initiatives are effective and inefficient.

In the marketing plan, the target market is usually segmented to enable the marketing efforts to yield good results.

The four major segments are:

DemographicPsychographicGeographicBehavioral.

The "demographic" segment classifies the target market based on age, gender, or race.  On the hand, "psychographic" segmentation dwells on consumers' activities, interests, and opinions, which go beyond the demographic classification.

Thus, the two segments that are part of the Marketing Plan are demographic and psychographic, while income and loyalty are ingredients in the segments.

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Answer: Demographic

Psychographic

Explanation:

A machine shop has 100 drill presses and other machines in constant use. The probability
that a machine will become inoperative during a given day is 0.002. During some days, no
machines are inoperative, but on other days, one, two, three, or more are broken down.
What is the probability that fewer than two machines will be inoperative during a
particular day?

Answers

The probability that fewer than two machines will be inoperative during a particular day is approximately 0.982201, or 98.22%.

How did we get the value?

To find the probability that fewer than two machines will be inoperative during a particular day, calculate the probability of having zero or one machines inoperative.

Denote the event "a machine becomes inoperative during a given day" as A. The probability of this event is given as P(A) = 0.002.

To calculate the probability of fewer than two machines being inoperative, calculate the probability of zero machines being inoperative (P(0)) and the probability of one machine being inoperative (P(1)), and then sum them up.

The probability of zero machines being inoperative is given by:

P(0) = (1 - P(A))¹⁰⁰

= (1 - 0.002)¹⁰⁰

= 0.980198

The probability of one machine being inoperative is given by:

P(1) = 100 × P(A) × (1 - P(A))^99

= 100 × 0.002 × (1 - 0.002)^99

= 0.198003

Now, calculate the probability of fewer than two machines being inoperative:

P(fewer than two) = P(0) + P(1)

= 0.980198 + 0.198003

= 0.982201

Therefore, the probability that fewer than two machines will be inoperative during a particular day is approximately 0.982201, or 98.22%.

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In the prepare phase of your analysis, you described the data sources you used. According to the Case Study Roadmap, this description should include where the data is located and how it is organized. It should also consider issues with bias or credibility, problems with the data, and how you verified its integrity. Finally, your description should explain how the data helped you answer your questions. Take a moment to review your description now. What steps could you take to make it even more descriptive? 1 point

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To make the description of the data sources in the prepare phase more descriptive, you can consider the following steps:

Specify the location of the dataDetail the organization of the dataAddress bias and credibility

Some steps to make the data sources more descriptive

Specify the location of the data: Provide specific information about the sources of the data, such as the name of the database, website, or organization where the data was obtained. If applicable, mention any specific datasets or files used.

Detail the organization of the data: Describe how the data is structured or organized, whether it is in a tabular format, spreadsheets, databases, or any other specific format. Mention the variables or fields present in the data and how they are arranged.

Address bias and credibility issues: Discuss any potential biases or credibility concerns associated with the data sources. Consider the source's reputation, the methodology used to collect the data, and any known limitations or biases in the data collection process.

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Assume that you are a management consultant called in to analyse the turnover problem. You are told that pay and benefits are fixed and cannot be substantially altered. It is clear that whatever you recommend must not bring productivity down. What would you recommend to management?

Answers

Answer:

oh its ibo shack

Explanation:

sonar

Your email marketing service shuts you down if your spam reports exceed 3%. You are doing a mailing to 900 people. What is the maximum number of spam reports you can get without being shut down?

Answers

Answer:27

Explanation:900 times 3%=27

27 is the maximum number of spam reports you can get without being shut down. Calculation: 900 times 3%=27

What is a spam report?

The act of categorizing electronic messages as abusive for reporting to an authority so that they can be handled with is known as spam reporting, which is more appropriately referred to as abuse reporting. Email messages, blog comments, and other types of spam are all examples of reported messages. Users can mark the postings of other users as having abusive material by filing abuse complaints.

Most websites that permit user-generated content either implement a range of user roles that enable users to jointly manage the site's contents or apply some moderation based on abuse complaints, such as concealing or removing the problematic content at a set threshold. By alerting hash-sharing systems to abusive message, the most difficult problems can be resolved.

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Use the graph to answer the following:
As the supply shifts from $1 to S2, what can be inferred about the quantity demanded?
es =)
A)
The quantity demanded will increase.
B)
The quantity demanded will decrease.
0)
The quantity demanded will not be affected.
D)
The quantity demanded can not be determined.

Answers

Answer: I assume C

Explanation: Supply curve is the supplier’s willingness and ability to supply whereas demand is to do with consumers. So a change in supply affects the supplier not the consumer, so really Quantity supplied should change, not quantity demanded.

Naya has done a lot of shopping recently. Which receipt should she probably keep the longest? *

CVS receipt for a juice and a pack of ponytail holders

Mall store for 5 shirts and 2 pants, all of which she's tried on and fit

Restaurant receipt for sandwich, salad, and lemonade

Target receipt for bluetooth headphones for her and a popular toy for her niece's birthday

Answers

Target receipt...

Explanation:

she tried on the clothes at the mall so she knows they fit and wont have to return them....she only got juice and stuff for her hair at CVS.... and a reciept for somthing she alredy ate is not going to be important...


Rick owns and operates a small farm that produces vegetables and fruits. His friend Owen owns and operates a butcher shop that sells various kinds of
meat. Rick often gives Owen vegetables and fruits in exchange for meat, and vice versa. This scenario best describes

Answers

Because Rick often gives Owen vegetables and fruits in exchange for meat, and vice versa, this scenario best describes a trade by barter.

What is a trade by barter?

A trade by barter refers to direct exchange of goods or services without an intervening medium of exchange or money either according to established rates of exchange or by bargaining.

A trade by barter is common among traditional societies, most particularly in those communities with some developed form of market. Product can be bartered within a group as well as between groups, although gift exchange probably accounts for most intragroup trade, particularly in small and relatively simple societies.

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60 points ! Easy question !!!!!!!!!!!!!!!

60 points ! Easy question !!!!!!!!!!!!!!!

Answers

Answer:

hope this help a all and have a good day!

Explanation:

There are two primary types of tort claims: intentional wrongs and negligence torts. Both types of wrongful actions can result in the victim filing a civil claim. As the name suggests, intentional torts are wrongful actions done purposefully. Negligence, however, does not require the intent to harm.

Discussion Questions
1. Sharp's Sandwich Shop has two conflicting quality issues-speed and freshness. The
premade sandwich system enhances speed; however, it has the potential of affecting
freshness. What type of system can Dawn implement that will enable her to keep
the process of premade sandwiches, yet guarantee that freshness will be unaffected?
Explain how the system would work and why it can effectively enable her to accomplish
both goals without any concern that one or the other must suffer.

Answers

Dawn will use Kanban to maintain the prefabricated sandwich process and ensure that freshness is not compromised.

Describe Kanban.

A well-liked framework for implementing agile and Develops software development is Kanban. It necessitates complete transparency of work and real-time capacity communication. Team members can always observe the status of every piece of work thanks to the visual representation of work items on a Kanban board. Kanban is a process management technology that manages the flow of production from client orders back to the warehouse and visually displays each job's progress on a company's radar.

What makes them a part of lean systems?

In its most basic form, Kanban is a method for an organization to visually monitor its work flow. Utilizing Kanban makes it simpler to maintain efficiency and assists in swiftly identifying (and resolving) work flow issues. The fundamental tenet of Kanban is that the flow of work is shown on a sizable board with several columns.

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LMNO Partnership has operated for several years. Currently, the partnership has the following account balances: Assets Liabilities Cash $ 100,000 Notes Payable $50,000 Land 200,000 Equity Larry, Capital $60,000 Marge, Capital 70,000 Nancy, Capital 80,000 Owen, Capital 40,000 Larry, Marge, Nancy, and Owen share equally in profits and losses. LMNO Partnership has decided to dissolve their operation. If LMNO is able to sell the land for $250,000 and uses the proceeds to pay off the Notes Payable, how much will Larry receive in return for his partnership interest

Answers

Answer:

LMNO Partnership

Larry will receive $72,500 in return for his partnership interest.

Explanation:

a) Data and Calculations:

Assets Liabilities

Cash $ 100,000

Land 200,000

Total assets = $300,000

Notes Payable $50,000

Equity:

Larry, Capital $60,000

Marge, Capital 70,000

Nancy, Capital 80,000

Owen, Capital 40,000

Total equity = $250,000

Total equity and liabilities = $300,000

Profit and loss sharing = equally (25% each)

Cash balance after the sale of land and settlement of debt:

Cash balance                                         $100,000

Sale of land                                           $250,000

Settlement of notes payable                   (50,000)

Balance to be distributed to partners $300,000

Statement of capital liquidation:

                                      Larry       Marge      Nancy        Owen        Total

Capital accounts      $60,000   $70,000  $80,000     $40,000   $250,000

Profit from land sale   12,500      12,500     12,500        12,500        50,000

Capital balances      $72,500   $82,500  $92,500    $52,500   $300,000

Cash distribution    ($72,500) ($82,500) ($92,500) ($52,500) ($300,000)

Capital balances                $0             $0             $0             $0               $0

Which contra asset account will be subtracted to calculate total fixed assets?

Answers

The accumulated depreciation account occurs on the balance sheet and lowers the gross amount of fixed assets.

What is a contra asset account deducted from the related asset account?

A contra account exists utilized in a public ledger to decrease the value of a connected account when the two exist netted together. A contra account's natural balance exists as the opposite of the associated account. If a debit exists the natural balance is recorded in the linked account, and the contra account documents a credit.

Contra assets merely detract from the entire value of the asset account, all one contains to do exists to add up all the assets together first. Later, add up all the depreciation. Finally, carry the aggregate depreciation and subtract it from the entire assets.

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The following credit sales are budgeted by Sunland Company: January $274000 February 350000 March 470000 April 360000 The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is

Answers

Answer:

$374,000

Explanation:

April Collection = $360000 x 70 % + $ 470000 x 20 % + $ 350000 x 8 %

                           = $374,000

The anticipated cash inflow for the month of April is $374,000

You have emerged as the leader of your business finance group project in class. Your group has been working together for five weeks on the major part of the project, the in-class group presentation. One group member has missed quite a few group meetings lately and is minimally contributing to the ideas and final product for the in-class presentation. This group member is a junior in finance with a minor in communications and stated that she is an expert in PowerPoint and multimedia presentations. Based on SLII, which leadership style should you exhibit?

Answers

Answer:

Based on SLII, the leadership style you should exhibit in this case is:

Directing.

Explanation:

Directing as a leadership style should not be done in total isolation of the other leadership styles.  While the junior member can be delegated to handle the organization of the PowerPoint presentation, there is need to initially direct, coach, and support this member to ensure that group objectives are attained.

Directing ensures that this junior member is properly instructed and supervised.

Coaching ensures that the junior member, having shown some level of competence, is fully engaged to develop all the required skill-set.

Supporting enhances the competence level of the junior group member.  This can be achieved through the active participation of the leader in the junior's assignments.

Delegating ensures that the ultimate leadership goal is attained, and this happens when the junior's competence cannot be questioned.

Yesterday, a company announced an unexpected decrease in dividend from $.0.10 per share to $0.09. The share price probably

A. fell because the change conveyed negative information about the firm’s future cash flows.
B. was unaffected because it is a small change and investors and managers do not worry about small changes in dividends.
C. rose because the investors would now receive more returns via capital gains and these gains are taxed at a lower rate.
D. rose because the decrease indicated the managers’ desire to de-emphasize dividends.

Answers

Answer:

A because its tells that it fell and it is the most likely reason

DESCRIBE THE FUNCTIONS OF
PRELIMINARY DATA GATHERING?

Answers

Preliminary data gathering involves collecting and analyzing relevant information to establish a foundation for research or decision-making, including identifying objectives, assessing data availability, etc.

What are the Functions of Preliminary Data Gathering?

Preliminary data gathering encompasses the initial acquisition and evaluation of pertinent information, serving as a basis for research or decision-making. It aids in defining project scope, goals, and needs, while also assessing data availability and quality.

This stage assists researchers and decision-makers in gaining insights, assessing project feasibility, recognizing potential obstacles, and formulating a strategic plan for subsequent data collection and analysis.

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Which feature prevents a company from uilizing the private assets of its shareholders for the payment of its leabiities?​

Answers

Answer: Limited Liability

Explanation: Business owners' liability for debts is restricted to the amount they put into the business.

Define the three economic aspects of monopoly and the three economic effects of oligopoly?

Answers

Answer:

MONOPOLY

1) Ownership of a Key Resource

A firm that has exclusive control or ownership of a key resource can restrict access to that resource and establish a monopoly. The limited availability of the key resource will make it impossible for new sellers to enter the market. Although this factor is important in economic theory, monopolies rarely ever arise for this reason in reality anymore. Mainly because most resources are available in various regions across the globe.

One famous example of a monopoly that arose because of ownership of a key resource is the diamond market in the twentieth century. During this period, the company De Beers effectively controlled most of the world’s diamond mines, either through direct ownership or exclusive agreements. As a result, De Beers could dominate the market and influence the market price at will.

 

2) Government Regulation

The government can restrict market entry by law (e.g. through patents or copyright laws), which may result in a monopoly. Governments usually do this to serve the public interest, because these regulations promote innovation as well as research and development (R&D). The idea behind this is that firms can be rewarded for their R&D efforts by getting exclusive rights to sell their product. Without this kind of protection, it would be more reasonable for many firms to let others do the research and just copy their products once they are on the market. However, this would eventually eradicate all innovation and research.

Arguably the most prominent (and controversial) examples of government-regulated monopolies can be found in the pharmaceuticals industry. It often takes more than a decade for companies to develop new drugs. However, if they succeed, the firms can apply for a patent and become the sole seller of the new drug for a set period of time. This monopoly position allows them to make enough profits to make up for high R&D expenditures.

3) Economies of Scale (i.e. Natural Monopoly)

In some industries, a single firm can supply a good or service at a lower cost than two or more firms could. We call this a natural monopoly (because it arises without government intervention). A natural monopoly can arise in industries where firms face high fixed costs but are able to realize significant economies of scale over the relevant range of output. Those circumstances result in decreasing average total costs as output increases, which makes it more difficult for new firms to enter the market.

The market for electricity is a common example of a natural monopoly. Building the infrastructure to supply a city with electricity is extremely expensive. Thus, the market has high barriers to entry. However, connecting an additional house to the power grid is relatively cheap once the infrastructure is in place. As a result, a single firm can supply a whole city at a lower cost than two or more competing companies could.

Explanation:

OLIGOPOLY

Some of the oligopoly effects are discussed as follows:

i. Restriction on output:

Implies that oligopoly results in small output and high prices as compared to other market structures, such as perfect competition.

ii. Price exceeds average costs:Implies that under oligopoly, there are restrictions on entry of new organizations. Thus, organizations charge prices more than the average costs. Therefore, consumers have to pay more in case of oligopoly market.

iii. Lower Efficiency:

Leads to non-optimum levels of output. This is because the output produced under oligopoly depends on the market share held by the organization. Thus, the oligopoly organizations fail to build the optimum scales of economies and achieve optimum output.

iv. Selling Costs:

Refer to high promotional costs. The oligopolists engage in high promotion tasks to take the share of its rivals. Thus, the resources are wasted in form of high selling costs which do not add to the satisfaction of customers.

Apart from aforementioned points, oligopoly shows the poor performance from various other angles. From the point of economic welfare, it fails to satisfy customers since the price charged is very high, even more than average costs. In addition, sometimes oligopolists may face wasteful fluctuations in output as the output is not determined optimally.

HOPE IT HELPS.

The number of people who have been exposed to a new advertising campaign in a sample of 500 individuals is as follows: 200 were exposed for 10 seconds, 150 were exposed for 20 seconds, and 150 were exposed for 30 seconds. Calculate the exposure distribution for this campaign.

Answers

The exposure distribution for this campaign is;Group A: 40% Group B: 30% Group C: 30%.

Exposure distribution refers to the number of times that a person views an advertisement or a piece of marketing content. This metric is significant since it helps companies to analyze the number of views for different content.

Exposure Distribution = (Number of Exposures / Total Sample Size) * 100 In this case, the total sample size is 500 people. Therefore, the number of exposures for each group is;

Group A: 200 exposures for 10 seconds

Group B: 150 exposures for 20 seconds

Group C: 150 exposures for 30 seconds.

To calculate the exposure distribution, we need to calculate the percentage of people in each group. This calculation is done using the formula given above.

For example,Group A: (200/500) * 100 = 40%Group B: (150/500) * 100 = 30%Group C: (150/500) * 100 = 30%

Therefore, the exposure distribution for this campaign is;Group A: 40%Group B: 30%Group C: 30%

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I want to create a projject to get funds for education for all people who can not afford them

Answers

Create and distribute your fundraising effort. Organize offline fundraising activities. Ask nearby companies to reciprocate donations. Sponsor group activities. Gather contributions for a school fundraiser are some method.

What is fundraising?

Fundraising, often known as fund-raising, is the process of soliciting and accumulating voluntarily contributed funds from people, businesses, nonprofit organizations, or state agencies.

The ideas that are used for fundraising can be:

Make clever online donation forms.Launch a dough fundraising campaign.Hold a shoe sale to raise money.Make a fundraising event using pledges.Organize a scratch-off ticket school fundraiser.Start a peer-to-peer crowdfunding campaign.Offer school supplies for sale to raise money.Encourage the community to make matching gifts.

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The question is incomplete, the complete question will be :

I want to create a project to get funds for education for all people who can not afford them. What can be the ideas that are used for fundraising

Which of the following is NOT an example of aggressive accounting practices? Select one or more a. Recording contingent losses that are probable b. Using a lower estimate of bad debts. c. Recording research and development costs as assets d. Increasing the useful life used in calculating depreciation

Answers

Answer: a. Recording contingent losses that are probable

Explanation:

Aggressive Accounting strategies are methods of recording company activities that will make it appear as if the company is doing well financially. These include acts such as;

Using a lower estimate of bad debts so that the bad debt expense deducted from income is lessRecording research and development costs as assets so that they are not deducted as expenses from income. Increasing the useful life of assets in depreciation calculations so that the depreciation amount deducted from income is less.

Recording contingent losses that are probable on the other hand is a conservative accounting policy.

Let MAC1 = 100 – 10E and MAC2 = 50 – 10E. Graph each function and compute the aggregate MAC curve. Let MD = 30E, compute the socially efficient equilibrium. For the equations given above, suppose the government sets the pollution level at four units. What are the net social costs of this policy?
Suppose a technological change occurs that reduces the marginal costs of abatement for polluter 1 in the above equation to that of polluter 2. How does this affect the socially efficient level of pollution? Solve numerically and graphically.

Answers

If the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not impact the socially efficient level of pollution. The level is still determined by equating Marginal Damage with the Aggregate MAC.

To graph each function, we can plot MAC1 and MAC2 on a graph with the quantity of emissions (E) on the x-axis and the marginal abatement cost (MAC) on the y-axis.

For MAC1: MAC1 = 100 - 10E

For MAC2: MAC2 = 50 - 10E

To compute the aggregate MAC curve, we add the individual MAC curves together. So, Aggregate MAC = MAC1 + MAC2.

Aggregate MAC = (100 - 10E) + (50 - 10E) = 150 - 20E

Now, let's calculate the socially efficient equilibrium by setting the Marginal Damage (MD) equal to the Aggregate MAC.

MD = Aggregate MAC

30E = 150 - 20E

Simplifying the equation, we get:

50E = 150

E = 3

Therefore, the socially efficient equilibrium occurs when the quantity of emissions (E) is 3.

Now, let's calculate the net social costs of the policy when the government sets the pollution level at four units.

Net social costs = Aggregate MAC - MD

Net social costs = (150 - 20(4)) - (30(4))

Net social costs = 110 - 120

Net social costs = -10

The net social costs of this policy would be -10, indicating a net benefit to society.

If a technological change occurs that reduces the marginal costs of abatement for polluter 1 to that of polluter 2, it means that MAC1 will become equal to MAC2.

Setting MAC1 equal to MAC2:

100 - 10E = 50 - 10E

Simplifying the equation, we find that E can have any value, as both sides are equal.

Graphically, this change would mean that MAC1 and MAC2 become parallel lines on the graph, with the same slope and intercept. The socially efficient level of pollution would still be determined by equating MD with the aggregate MAC.

In conclusion, if the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not affect the socially efficient level of pollution. The socially efficient level is still determined by equating the Marginal Damage with the Aggregate MAC, regardless of the marginal costs of individual polluters.

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what is large office​

Answers

Answer:

Large office is big organisations with many clerical workers.

I hope it will help you ((:

2. Explain the reasons for downward and upward slopes of aggregate demand and short run aggregate supply curves respectively. ​

Answers

Answer:

The downward slope of the aggregate demand curve can be attributed to the wealth effect, interest rate effect, and the net export effect. Firstly, the wealth effect refers to the tendency of consumers to spend more as their wealth increases, and vice versa. As the price level decreases, the real value of household wealth increases, leading to increased consumer spending and aggregate demand. Secondly, the interest rate effect suggests that a decrease in the price level leads to lower interest rates, which in turn stimulates borrowing and investment, leading to an increase in aggregate demand. Lastly, the net export effect indicates that a decrease in the price level leads to a decrease in the exchange rate, making exports cheaper and imports more expensive, which increases net exports, leading to an increase in aggregate demand.

On the other hand, the upward slope of the short-run aggregate supply curve is due to the sticky-wage theory, the sticky-price theory, and the misperceptions theory. Firstly, the sticky-wage theory suggests that nominal wages are slow to adjust to changes in the price level. As the price level falls, firms' profits decrease, leading to a reduction in output and employment. However, nominal wages remain the same, causing a decrease in firms' production costs and an increase in their profits, leading to an increase in output and employment. Secondly, the sticky-price theory indicates that some firms' prices are inflexible in the short run and do not adjust immediately to changes in the price level. As the price level falls, firms' output decreases, leading to a decrease in profits. However, their production costs also decrease due to lower input prices, leading to an increase in profits and output. Lastly, the misperceptions theory suggests that firms confuse relative price changes with changes in the overall price level, leading to a change in output and employment in response to perceived changes in demand and supply conditions.

In summary, the downward slope of the aggregate demand curve can be explained by the wealth effect, interest rate effect, and net export effect, while the upward slope of the short-run aggregate supply curve can be explained by the sticky-wage theory, the sticky-price theory, and the misperceptions theory. Understanding these theories is crucial for policymakers to implement effective macroeconomic policies to stabilize the economy in the short run.

You are the manager of a firm that charges customers $16 per unit for the first unit purchased, and $12 per unit for each additional unit purchased in excess of one unit. The accompanying graph summarizes your relevant demand and costs.



" A graph summarizes the relevant demand and costs of a firm.""The horizontal axis labeled quantity ranges from 0 to 7 in increments of 1. The vertical axis labeled price ranges from 0 to 20 in increments of 2. A line labeled D begins at the point (0, 18) goes down to the right and ends at the point (6, 6). A horizontal line labeled M C = A C passes through the point (0, 8) and intersects the line D at (5, 8)."


a. What is the economic term for your firm’s pricing strategy?

Second degree price discrimination
Fourth degree price discrimination
First degree price discrimination
Third degree price discrimination



b. Determine the profits you earn from this strategy.


$



c. How much additional profit would you earn if you were able to perfectly price discriminate?

Answers

According to the information, the additional profit earned by perfectly price discriminating would be $14.

What is the economic term for your firm’s pricing strategy?

The economic term for the firm's pricing strategy is third degree price discrimination. This is because the firm charges different prices for different customer segments, based on their willingness to pay.

How to determine the profits you earn from this strategy?

To determine the profits earned from this strategy, we need to find the quantity at which marginal cost equals marginal revenue. From the graph, we can see that the marginal cost (MC) is constant and equal to $8. The marginal revenue (MR) is given by the demand curve. At a quantity of 1, the MR is $16, and for each additional unit, the MR is $12. So, we can set MC = MR to find the profit-maximizing quantity:

$8 = $16 for the first unit

$8 = $12 for the additional units

Solving these equations, we get the profit-maximizing quantity to be 5 units.

To find the profit earned, we need to calculate the total revenue and total cost at this quantity. The total revenue is the sum of the price charged for each unit sold, which is $16 for the first unit and $12 for each additional unit:

Total revenue = (1 x $16) + (4 x $12) = $64

The total cost is the sum of the fixed cost and variable cost, which is given by the area under the MC curve up to the profit-maximizing quantity:

Total cost = $8 x 5 = $40

Therefore, the profit earned from this pricing strategy is:

Profit = Total revenue - Total cost = $64 - $40 = $24

How much additional profit would you earn if you were able to perfectly price discriminate?

If the firm were able to perfectly price discriminate, it would charge each customer the maximum price they are willing to pay for each unit, resulting in higher profits. In this case, the firm's demand curve would be the same as the marginal revenue curve, and the profit-maximizing quantity would be where marginal cost equals the maximum price the customer is willing to pay for that unit.

From the graph, we can see that the maximum price a customer is willing to pay for the first unit is $18, and for each additional unit, it decreases by $2. So, the profit-maximizing quantity for each customer segment would be:

For customers willing to pay $18 per unit: MC = $8 = $18, so 1 unit is sold

For customers willing to pay $16 per unit: MC = $8 = $16, so 2 units are sold

For customers willing to pay $14 per unit: MC = $8 = $14, so 3 units are sold

For customers willing to pay $12 per unit: MC = $8 = $12, so 4 units are sold

For customers willing to pay $10 per unit: MC = $8, so 5 units are sold

For customers willing to pay $8 per unit: MC = $8, so 6 units are sold

For customers willing to pay less than $8 per unit: no units are sold

The total revenue earned would be:

Total revenue = (1 x $18) + (1 x $16) + (1 x $14) + (1 x $12) + (1 x $10) + (1 x $8) = $78

The total cost would still be the same as before, $40. Therefore, the additional profit earned by perfectly price discriminating would be:

Additional profit = Total revenue - Total cost - Profit from original pricing strategy

= $78 - $40 - $24

= $14

So, the additional profit earned by perfectly price discriminating would be $14.

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Pls hurry ! In your own words, why is using an outline to take notes a good strategy?

Answers

Answer:

It is better used to locate things.

Explanation:

Answer:

helps organize your ideas

Explanation:

edg 2021

A company that provides customers a chance to participate in product design and development is involved in…
A) marketing research.
b) experimental marketing.
C) co-creation.
D) innovative testing.

Answers

The company that provides customers a chance to participate in product design and development is involved in co-creation (option C). Co-creation is a collaborative process where companies involve customers in various stages of product development, allowing them to provide input, ideas, and feedback. It emphasizes the active involvement of customers in shaping the final product, resulting in a more tailored and customer-centric offering.

Why does anyone decide to produce or sell something?

Answers

Make Profit and be successful

What is the purpose of horizontal communication?

Answers

Answer:

Built for communication across roles instead of from top down.

Explanation:

To promote coordination and cooperation among employees with a similar rank, position, or status in the company.

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