Answer:
Output = 5
Explanation:
As per the data given in the question,
Output per firm :
Marginal cost = Average total cost
MC = ATC (Since in long run each type of firm is earning zero economic profit)
(49 + q^2) ÷ q = 2q
49 + q^2 = 2q^2
49 = q^2
q = 7
Average total cost = (49 + 49) ÷ 7
= 98 ÷ 7
= 14
Hence, Price = min ATC = MR = 14
Market quantity (Q)
= 49 - 14
= 35
Number of firms
= Total quantity ÷ Output per firm
= 35 ÷ 7
= 5
Answer:
Both statements I and III are correct.
Explanation:
<u>1.Construct a zero investment portfolio that will yield a sure profit
</u>
<u>
</u>
<u>3.Make simultaneous trades in two markets without any net investments</u>
Answer:
It will take 13 years and 66 days
Explanation:
Giving the following information:
Your savings account earns 1.72% interest.
Present value= $3,000
Final value= $3,756
To calculate the number of years, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(3,756/3,000) / ln(1.0172)
n= 13.18 years
To be more specific= 365*0.18= 66
It will take 13 years and 66 days
Answer:
b) False
Explanation:
The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own. This will in turn drive sales and the production quantity to increase marginally in the short-run. However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.