Answer:
8.06%
Explanation:
According to the Fisher equation
( 1 + Total rate of return) = (1 + real rate of return) x ( 1 + inflation rate)
(1.14) = (1.055) x ( 1 + inflation rate)
Inflation rate = 1.080569 - 1 = 0.080569 = 8.06%
For this case what you should do is to clear q in both equations with a price of p = 16 $
We have then:
For the demand
p = 48 - 2q
q = (48 - p) / 2
q = (48 - 16) / 2
q = 16
For the supply:
p = 12 + q
q = p-12
q = 16-12
q = 4
Answer:
if the town imposes a price ceiling of 16 dollars, and the quantity demand will be 16 while quantity supply will be 4.
As an Oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to <u>decline</u> significantly.
When firms in an oligopoly market individually chooses production in order to maximize profit, a quantity of output is produced by them which is higher than the level produced by monopoly and lesser than the level produced by competition.
The existence of economies of scale in certain industries can lead to oligopolistic market structures in those industries. This oligopoly market structure refers to a market form in which there are only a few sellers and they sell similar products.
The Oligopoly firm produces at a higher output, and so the costs per unit here decline significantly. Oligopoly firms are also able to take advantage of economies of scale that reduce production costs and prices.
Thus, when the oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to decline significantly.
To learn more about the Oligopoly market here:
brainly.com/question/15243178
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