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Alenkasestr [34]
3 years ago
14

"Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer

balls is prohibited. The following equations describe the monopolist’s demand, marginal revenue, total cost, and marginal cost: Demand: P=15−Q Marginal Revenue: MR=15−2Q Total Cost: TC=3+Q+0.5Q2 Marginal Cost: MC=3+Qwhere Q is quantity and P is the price measured in Wiknamian dollars.a. How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist’s profit?b. One day, the King of Wiknam decrees that henceforth there will be free trade—either imports or exports— of soccer balls at the world price of $6. The firm is now a price taker. What happens to domestic production of soccer balls? To domestic consumption? Does Wiknam export or import soccer balls?c. In our analysis of international trade in Chapter 9, a country becomes an exporter when the price without trade is below the world price and an importer when the price without trade is above the world price. Does that conclusion hold in your answers to parts (a) and (b)? Explain.d. Suppose that the world price was not $6 but, instead, happened to be exactly the same as the domestic price without trade as determined in part (a). Would anything have changed when trade was permitted? Explain."
Business
1 answer:
sweet-ann [11.9K]3 years ago
7 0

Answer:

Explanation:

a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4

price P=15-Q=10-4=6

profit=6*3-TC=18-(3+4+0.5*4^2)=3

b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.

c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.

d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.

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A surplus of a good

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Although we think that having a lot of something sounds like a good idea that is not always the case. Sometimes its better to have less of an item but therefore sell it for. For example when there was a shortage of hand sanitzer, masks and toilet paper people bought more of it for a higher price because they were afraid not to have enough. A surplus can take up a lot of storage and use up a lot of money. For example if a car manafacturer has a surplus of cars they are just sittinng there taking up space in a lot that needs to be payed for and mantained. I find it is especially bad if there are lot of that item and people are not interested in purchasing it. The company would be losing money because they would be most likely selling it at a lower price. Therefore the economy would be losing money while during a shortage they would be gaining money.

4 0
3 years ago
WexAll Industries has seen demand for its RB37 start to slow down. In addition, the number of other companies producing a simila
White raven [17]

Answer:

The RB37 is most likely in the decline stage of the product life cycle

Explanation:

The decline stage of the product life cycle is associated with decreasing revenue due to market saturation, high competition, and changing customer needs. Companies at this stage have several options: They can choose to discontinue the product, sell the manufacturing rights to another business that can better compete or maintain the product by adding new features, finding new uses for the product, or tap into new markets through exporting. This is the stage where packaging will often announce “new and improved.”

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​Joe's starting salary as a mechanical engineer is around ​$100 comma 000. Joe is planning to place a total of 13​% of his salar
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Answer:

$ 2,209,797.96

Explanation:

Given:

Salary = $100,000

Salary investment rate = 13%

Salary increase rate(g) = 5%

number of year = 25

Annual rate of return(i) = 11%

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Salary invested = $100,000*13% = $13,000

calculation of present worth

P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675

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3 0
3 years ago
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6 0
3 years ago
Read 2 more answers
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DENIUS [597]

Answer:

6%

Explanation:

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

Solution

interest rate on 3-year bond

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Interest rate = [(1.16802 ^ 0.33) - 1] + 0.75%

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Interest rate = 0.0525 + 0.0075%

Interest rate = 0.06 OR 6%

6 0
3 years ago
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