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Tpy6a [65]
3 years ago
11

In a market without price controls, supply will eventually _____ demand. Then consumers will buy all the products that producers

supply. equal be greater than be less than
Business
2 answers:
SIZIF [17.4K]3 years ago
4 0
In a market without price controls, supply will eventually _____ demand. Then consumers will buy all the products that producers supply.
<span>The answer is - be less than
When there's no price control consumer can now buy anything they want and sooner the economy will supper the lack of supply.</span>
nydimaria [60]3 years ago
3 0

I believe the answer is: Be less than

.

Without price control, the sellers/producers tend to have the tendency to keep increasing the selling price of the product in order to maximize their profit. When this happen, the demand of that product would be decreased which resulted in over supply of the product.

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2 years ago
The residents of cities A, B, C, D and E consume wi-fi routers, with consumption in each city is 150 routers (see the map below)
natta225 [31]

Answer:

a. The production process shows that the more the quantity produced, the less the average cost of production.  It proves that there are advantages arising from economies of scale.

AC with Q = 150 = $10 ($1,500/150) and

AC with Q = 750 = $2 ($1,500/750)

b. The optimal arrangement is (centralized production) to produce the 750 routers at city C and ship to the 4 other cities.

c. AC with Q = 150 = $10 (14000/(150+1250) and

AC with Q = 750 = $7 (14000/(750+1250)

d. The cost-minimizing arrangement of production in this case is decentralized production.

e. The average cost of producing 150 units at the various cities has remained unchanged while the average cost of producing the 750 units at city C has increased from $2 to $7.

f. Suppose now production costs are those given in part (a) but let shipping cost per router be given by t (in the preceding discussion, we had t = 6, now we assume we don’t know the cost of shipping).

The value of t that would make the two arrangements for production (centralized versus separate factories) equivalent in terms of cost is:

t = $10 per router

Therefore, centralized production cost will be equal to $7,500 ($1,500 + ($10 * 600), and decentralized production cost will remain at $7,500 (750 * $10).

Explanation:

a) Data and Calculations:

Cities with consumers of wi-fi routers = A, B, C, D and E

Demand for routers by each city = 150

Total number of routers required = 750 (150 * 5)

b) Suppose the average cost of producing a router is AC (Q) = 1500/Q, where Q is the number of routers produced in a factory:

Therefore AC with Q = 150 = $10 ($1,500/150) and

AC with Q = 750 = $2 ($1,500/750)

Cost of Production of routers in city C:

cost of producing 750 routers at $2 per router = $1,500

Shipping cost of 600 routers to 4 cities at $6 per router = $3,600

Total cost of producing at city C = $5,100 ($1,500 + $3,600)

Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)

c) Suppose the average cost of producing a router is AC = 14000/(Q+1250):

Therefore, AC with Q = 150 = $10 (14000/(150+1250) and

AC with Q = 750 = $7 (14000/(750+1250)

Cost of Production of routers in city C:

cost of producing 750 routers at $7 per router = $5,250

Shipping cost of 600 routers to 4 cities at $6 per router = $3,600

Total cost of producing at city C = $8,850 ($5,250 + $3,600)

Total cost of producing 750 routers at 5 cities = $7,500 ($1,500/150 * 750)

d) $7,500 = $1,500 + tQ

where Q = 600 (150 * 4)

Therefore, $7,500 - $1,500 = t600

simplifying

t600 = $6,000

t = $6,000/600 = $10

4 0
3 years ago
During the current tax year, Paul came down with a serious illness. Paul's uncle paid many of Paul's expenses during the period
Naily [24]

Answer:

Neither Paul nor his uncle can deduct the expenses.

Explanation:

3 0
3 years ago
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