Answer:
equilibrium market price = 40
Number of firms in the industry = 240
Explanation:
Let we assume the number of firms be N
And, at equilibrium
Marginal cost = market price
2Q = P i.e market price .....................(i)
Also demand = supply at equilibrium point
which equals to
= 240 × (P ÷ 2) = N × Q.......(ii)
So,
from (i) and (ii)
N i.e Number of firms in the industry = 240
since Q i.e Quantity =20 units
So,
P = 2Q
= $40
Answer:
Hire more labor and increase the output.
Explanation:
Because Rear Gear is a profit-maximizing firm, it will hire more labor and increase the output.
This is because, when the firm has purchased a new sewing machine, they need to produce more in order to capture the fixed cost of production (i.e. cost of sewing machine). In order to do so, they need to hire more workers or labour to increase the total output.
Answer:
C. every additional missile will reduce consumer goods production more and more.
Explanation:
Due to the fact there are limited resources in the economy, as more of one product is being produced, there would be less resources available to produce the second good and as a result, the number of the other good that can be produced would reduce.
As more of one good is produced, the opportunity cost of producing the other good increases.
As more missiles are produced, less consumer goods would be produced and the opportunity cost of consumer goods would increase.
This can be understood by looking at the production possibility curve.
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced
It is for this reason that the production possibility frontier is bowed outwards
Answer:
Explanation:
Principle amount is $162000
Rate is 7.5% or 7.5%/12 monthly
So formula is: Interest = Principle * Rate * Time / 100
Interest = 162000*7.5*1/12*1/100 = 1215000/12 = 1012.5
Interest = 1012.5
Answer: Option C
Explanation: In simple words, inelastic demand refers to a situation when the demand of the buyer does not change as per the price of the commodity. Thus, the price does not increase or decrease with decrease or increase in demand.
Hence the farmers should decrease the supply as there would be no profit for them to supply a product that has an inelastic demand.
