2. Assume that the gold-mining industry is competitive. a. Illustrate a long-run equilibrium using diagrams for the gold market and for al representative gold mine. b. Suppose that an increase in jewelry demand induces a surge in the demand for gold. Using your diagrams from part (a), show what happens in the short run to the gold market and to each existing gold mine. c. If the demand for gold remains high, what would happen to the price over time? Specifically, would the new long-run equilibrium price be above, below, or equal to the short run equilibrium price in part (b)? Is it possible for the new long-run equilibrium price to be above the original long-run equilibrium price? Explain. 3. The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses. a. How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer? b. Draw two graphs, side by side, illustrating the present situation for the typical firm and in the market c. Assuming there is no change in demand or the firms' cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market. Previous
Answers
a) Equilibrium of a Gold MarketIn a competitive industry, the long-run equilibrium of the market is reached when the average total cost (ATC) of each firm is minimized and firms earn no economic profit.
b) Effect of Increase in Jewelry Demand.
c) New Long-Run Equilibrium.
Explanation:
a) Equilibrium of a Gold MarketIn a competitive industry, the long-run equilibrium of the market is reached when the average total cost (ATC) of each firm is minimized and firms earn no economic profit. The market supply curve, in the long run, becomes perfectly elastic since it is relatively easy for new firms to enter or for existing firms to exit the industry. The gold-mining industry is no exception; it is a competitive market and the firms within the industry seek to minimize their costs and maximize their profits in the long run. A representative gold mine and the gold market diagram are illustrated below.
b) Effect of Increase in Jewelry Demand: The demand for gold rises when there is an increase in jewelry demand, and in the short run, there is a price increase. Existing firms are making economic profits as a result of this price rise, but new firms will enter the industry since the market price is above the minimum of the long-run average total cost. As a result, the supply curve of the gold market shifts rightward, leading to a drop in the market price and individual firm prices. The market price falls to its new long-run equilibrium price, which equals the minimum of the long-run average total cost, as new firms continue to enter the market.
c) New Long-Run Equilibrium: The demand for gold will stay high if the demand for jewelry remains high, resulting in an increase in the equilibrium quantity and a rise in the equilibrium price. The long-run equilibrium price of gold will be the same as the short-run equilibrium price if no cost curves have shifted. The original long-run equilibrium price will be less than the new long-run equilibrium price since the demand has shifted upwards. This happens because when demand rises, the short-run equilibrium price rises and economic profits are made by the firms. The demand curve, however, also shifts rightwards as a result of this increase in economic profits. This will drive up the price until the firms' economic profits have been entirely competed away and they are earning zero economic profit. It is not possible for the new long-run equilibrium price to be above the original long-run equilibrium price because the new long-run equilibrium price is the price that equates supply and demand with the new demand curve and the long-run supply curve. As the original demand curve and the long-run supply curve had determined the original long-run equilibrium price, it would be impossible for the new demand curve and the long-run supply curve to produce a higher price than this price.
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Related Questions
When you put a check you received in the bank, you have immediate access to the money.
True or False.
Answers
Answer:
this is true hope this helps
Explanation:
In Virginia, government agencies that address market failures include the Attorney General,
the Department of Labor, and the Department of Environmental Quality. true or false ?
Answers
Answer:
The answer is False.
Explanation:
The office of the Attorney General in Virginia primarily responsible for attending to matters of the state such as:
Representing the governor and the state in legal matters; Consulting for members of the Virginia General Assembly (VGA) and local government officials Acting as the defense counsel in legal suits filed against the stateDefending the constitution of the stateThe department of Labour on the other hand is tasked with the following mission to position Virginia as a conducive place to live work or run a business. It tries to achieve this by adopting and promoting international best practices.
Department of Environment of course is focused on ensuring that companies and individuals uphold the law in relation to the environment.
Managing the stability of inflation, employment and interest rates by the use of monetary policies.
Cheers
Assume that the oil extraction company needs to extract Q units of oil (a depletable resource) reserve between two periods in a dynamically efficient manner. What should be a maximum amount of Q so that the entire oil reserve is extracted only during the 1st period if (a) the marginal willingness to pay for oil in each period is given by P = 26 - 0.5q, (b) marginal cost of extraction is constant at $3 per unit, and (c) discount rate is 1%?
Answers
To determine the maximum amount of oil reserve, Q, that should be extracted only during the 1st period, we need to compare the marginal cost of extraction with the marginal willingness to pay for oil in each period.
(a) The marginal willingness to pay for oil in each period is given by P = 26 - 0.5q, where q represents the quantity of oil extracted in each period.
(b) The marginal cost of extraction is constant at $3 per unit.
(c) The discount rate is 1%.
We want to maximize the total present value of revenue from oil extraction. The present value of revenue can be calculated using the formula:
PV = Σ [(P - MC) / (1 + r)^t],
where PV is the present value of revenue, P is the price per unit, MC is the marginal cost per unit, r is the discount rate, and t is the time period.
Since the marginal cost of extraction is constant at $3 per unit, MC = $3.
Using the formula for marginal willingness to pay, we have P = 26 - 0.5q.
Substituting the values into the present value formula, we get:
PV = Σ [(26 - 0.5q - 3) / (1 + 0.01)^t],
where the summation is taken over the 1st period.
To maximize PV, we want to extract the maximum amount of oil reserve, Q, only during the 1st period. This means the summation will include all values of q from 0 to Q.
To find the maximum value of Q, we need to determine the point at which extracting any additional unit of oil in the 1st period would result in a lower present value.
Therefore, we need to find the value of Q where the marginal willingness to pay, 26 - 0.5Q, is equal to the marginal cost, $3.
26 - 0.5Q = 3,
Solving for Q:
0.5Q = 23,
Q = 46.
Hence, the maximum amount of oil reserve, Q, that should be extracted only during the 1st period is 46 units.
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Banks do not hold a lot of their assets in the form of cash mainly because of:
a. regulation.
b. the fear of being robbed.
c. the opportunity cost of holding cash, cash does not earn interest.
d. it can encourage employee theft.
Answers
Banks do not hold a lot of their assets in the form of cash mainly because of the opportunity cost of holding cash, cash does not earn interest. The correct option is C.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
The interest that could have been made if the cash had been used to buy bonds instead is the opportunity cost of keeping any money balance.
Therefore, due to the opportunity cost of holding cash and cash does not earn interest banks does nor prefer to hold a lot of their assets in the form of cash .
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"Which of the following statements is (are) true? Do not select all answers, incorrect answers are penalized." "When bonds are sold at a premium, the debit to interest expense is more than the interest payment." "When the stated rate on a bond is greater than the market rate, bond sells at a premium. When the stated rate and the market rate are equal bonds sell at a premium "When bonds are sold at a discount, the DEBIT to interest expense is greater than the interest payment." Unamortized Bond discounts are deducted from bonds payable on the balance sheet Unamortized Bond premiums are deducted from bonds payable on the balance sheet
Answers
The true statement is: "When bonds are sold at a premium, the debit to interest expense is more than the interest payment," and "Unamortized Bond premiums are deducted from bonds payable on the balance sheet. "What is a bond premium? The bond premium is the amount over the face value of the bond that the issuer has received.
This happens because investors are willing to pay a premium for a bond that offers a greater return than the market average. A premium bond pays an interest rate that is higher than the prevailing market interest rate.When a bond is sold for more than its face value, a bond premium is produced. The company debits the cash account for the actual cash received when the bond is sold and credits the bond payable account for the face value of the bonds sold in the journal entry to record the sale of the bonds.
The difference between the amount credited to bonds payable and the amount received is the bond premium. The premium on bonds payable is considered a liability account and is reported on the balance sheet as a reduction of the face amount of the bonds payable. In addition, the premium on bonds payable account is reduced over the life of the bonds through a process known as amortization.
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what factors into the opportunity cost for a decision?
Answers
Answer:
Price. Perhaps one of the biggest factors is the price; although this can vary depending on income.
Time. Everyone has the same 24 hours in a day. Whether you’re Bill Gates, Warren Buffett, or your next-door neighbor.
Effort. Time and effort are essentially interlinked. ...
Utility. This is essentially the enjoyment or pleasure that the consumer receives
Explanation:
Jesse wants to work as a public relations specialist. What academic requirements should he complete?
A.
a bachelor’s degree
B.
on-the-job training
C.
a technical program
D.
a doctorate degree
E.
high school
Answers
Answer:
A.
Explanation:
a bachelor's degree
Answer:
"A 4-year bachelor's degree in a PR-related area like journalism, marketing or communications is frequently required for entry-level positions."-Google
So the answer should be A.
Which type of production process is likely used for custom
yachts built by Logan Corporation?
Group of answer choices
a) Assembly.
b) Batch.
c) Job Shop.
d) Direct assembly.
e) Continuous Flow.
Answers
A production process refers to the series of steps or activities involved in transforming raw materials, components, or resources into finished goods or services. The likely type of production process used for custom yachts built by Logan Corporation is c) Job Shop.
Custom yachts typically require unique specifications and customization according to individual customer preferences. Job Shop production processes are well-suited for such custom and low-volume manufacturing. Job shops provide flexibility in production, as each yacht is built to order and requires specialized craftsmanship and attention to detail. This production approach allows for the customization of various components and features, accommodating specific customer requirements.
On the other hand, assembly, batch, direct assembly, and continuous flow production processes are more commonly associated with standardized or high-volume manufacturing where repetitive tasks or continuous production lines are involved. However, in the case of custom yachts, the nature of the product and the need for customization make the job shop production process the most appropriate choice.
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The firm uses the perpetual inventory system, and there are 22 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO? $
b. What is the total cost of the ending inventory according to LIFO? $
Answers
To calculate the total cost of the ending inventory according to FIFO (First-In, First-Out) and LIFO (Last-In, First-Out), we need information about the cost of each unit of the item and the number of units sold during the year. Without this information, it is not possible to provide an accurate answer.
If you can provide the cost per unit and the number of units sold during the year, I can help you calculate the total cost of the ending inventory according to FIFO and LIFO.
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A large public corporation in the telecommunications industry has become so powerful that it uses its vast resources to prevent other companies from entering the market as a competitor. the federal courts determine the company to be an illegal monopoly and order it to be split into multiple separate corporations. why
is this government action considered appropriate in americas free market economy?
A. in a free market economy, it is important for wealth to be distributed evenly.
B. by acting to disband a monopoly, the government is actually protecting competition and the free market.
C. the government has extraordinary power to step in and intervene in cases dealing with public corporations.
D. despite popular belief, America is not meant to have a free market economy.
Answers
Answer:
by acting to disband a monopoly, the government is actually protecing competition and the free market
Explanation:
Which of the following is an example of a civil engineer demonstrating problem sensitivity? (Select all that apply.)
1 Anne notices that the construction company isn't properly following the specified layout for emergency exits.
2 Lewis resolved the conflict between the construction company and the client with his usual tact and diplomacy Nick had to leave his last firm because he felt the environment there was too hostile and he couldn't deal with it.
3 Michiko reviews the latest spec changes from the architect on her project and realizes that a simple color change is going to require reordering massive amounts of tile and slow construction to a halt
Answers
Answer:
1. Anne notices that the construction company isn't properly following the specified layout for emergency exits
3. Michiko reviews the latest spec changes from the architect on her project and realizes that a simple color change is going to require reordering massive amounts of tile and slow constriction to a halt
Explanation:
Problem sensitivity simply means the ability for someone to be able to know that something is wrong with a particular thing. In this case, the civil engineer demonstrating problem sensitivity include:
1. Anne notices that the construction company isn't properly following the specified layout for emergency exits
3. Michiko reviews the latest spec changes from the architect on her project and realizes that a simple color change is going to require reordering massive amounts of tile and slow constriction to a halt .
In both cases, they detected what was wrong and could hinder what they were doing or can cause a problem later.
Problem sensitivity simply means the ability for someone to be able to know that something is wrong with a particular thing.
I want to become doctor and I'm from nepal..which may be the best country for me to study
Answers
Answer:
the best would always be the USA in doctoring.
it has the best colleges etc.
Explanation:
Consumer surplus exists because of the
A. surplus of money that wealthy consumers hold.
B. surplus in marginal product that firms get when they hire an additional worker.
C. willingness of some consumers to pay a price higher than the market price for some units of a good.
D. additional utility that households obtain when the prices of substitutes fall.
E. increase in the availability of goods when income rises.
Answers
Answer:
it exists because of the increase in the availability of goods when income rises
Choosing to go to college over getting a job right out of high school is an example of a(n) _____.
fixed cost
opportunity cost
variable cost
none of the above
Answers
Catherine has been managing her company for a couple of years. She now plans to expand her business by bringing in fresh funding through a new stock issue. She would like to inform her investors about this development. What would Catherine use to inform investors about this development in her company?
Catherine would use to inform investors about the development in her company.
Answers
Answer:
Newsletter on website and social media platforms. Email to investorsExplanation:
In order to reach as many of her investors as possible, Catherine can write up a news update or newsletter explaining the change to her investors and then post it on the company website. She should also post it to their social media platforms as an increasing number of people check these as opposed to websites.
In the event that her investors are not public but rather private, Catherine would have would have their contact details such as email. She can therefore send the update to their email addresses. This will increase the chances of the investors seeing it.
Answer: Direct mail
Explanation: Direct mail enables an advertiser to reach target customers through mail, thereby making it a selective and specific medium. Media vehicles in direct mail include manuals, booklets, catalogues, newsletters, invitations, posters, coupons, and charts. To send out mailers, however, an advertiser needs to have an updated list of target contacts. Direct mail is a cheap advertising medium, and its advantage is that mailers can contain a lot of information. It also includes a feedback option in the form of reply cards to prompt customers to respond.
Next Saturday, best friend, Sol, and I will have separate acts in a citywide talent contest. But we've just made a _____ with each other that will help us from feeling jealous if one of us wins and one loses. We've decided that if one of us wins, that person will share the prize money with one another.
Answers
Answer:
truce
Explanation:
Here is the full question :
Next Saturday, my best friend. Sol and I will have separate acts in a citywide talent contest. But
we've just made a _____with each other that will help us from feeling jealous if one of us
wins and one loses. We've decided that if one of us wins that person will share the prize money
with the other one.
Which word BEST completes the sentence?
truce
alliance
treaty
pact
A truce is an agreement between people to stop fighting for a limited.
Sol and his best friend made an agreement that would stop them from fighting
A pact is an agreement between people
Answer:
Truce (that the correct one).
Explanation:
there is a proposal to raise the minimum wage to $20 an hour. what is the impact on the economy?
Answers
The impact of raising the minimum wage to $20 an hour on the economy would depend on a variety of factors, including the current minimum wage, the size of the workforce, and the industries and regions that would be most affected.
On the one hand, raising the minimum wage could increase the standard of living for workers, reduce poverty and income inequality, and stimulate consumer spending. This increased spending could then lead to an increase in demand for goods and services, potentially boosting economic growth.
However, some economists argue that raising the minimum wage would increase labor costs for businesses, leading to higher prices for consumers, and could ultimately result in job losses, as businesses may cut jobs or reduce hours to offset the increased labor costs. Some also argue that it could lead to increased automation and outsourcing of jobs to countries with lower labor costs.
Overall, the impact of raising the minimum wage to $20 an hour on the economy is complex and uncertain, and would depend on a variety of factors.
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how many peoples in kerala
Answers
Answer:
2million
Explanation:
I hope naka tulong
Answer:
34.8 million
Explanation:
its divided in 14 district
Allen Furniture Company is considering offering an inexpensive line of college dorm and apartment furnishings. If they move forward, they will renovate part of their store to accommodate this new stock. Before spending the money to redesign the store, they first want to find out customer interest. In a short response of approximately 100 words, describe some of the steps they should take as they consider this project.
Answers
Answer:
Allen Furniture Company should look into conducting a survey to gauge customer interest to find what they look for, need, and find attractive. They could do so by going to college campuses and conducting random interviews. For their apartment furnishings, they could look online to see what kind of product sell and do an analysis of customer interest that way and they could also conduct a survey for people that live in apartments. They could also look into a consultant that specializes in the field and is experienced with what customers like or want.
please help
Arthur showed up five minutes late to his job interview. His interviewer will likely wonder whether he possesses which important business skill?
Group of answer choices
punctuality
responsibility
integrity
ability to follow a schedule
Answers
Answer:
D) ability to follow a schedule
Answer:
Punctuality
Explanation:
I took this test, and this was the right answer
What is the name for the process by which information is collected, recorded, and analyzed so that a company can make informed decisions about its marketing efforts?
Answers
Marketing research is the method by which information is collected, recorded, and analyzed so that a company can make informed decisions about its marketing efforts.
What is meant by market research?This is the way that a particular business would go out in order to gather information about a particular market. That is especially when they are in the process of bringing a new good to the market. This would help them to identify their target customers for the particular brand.
Hence we can say that Marketing research is the method by which information is collected, recorded, and analyzed so that a company can make informed decisions about its marketing efforts.
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does anyone know how this is done? i need to know asap due in a while
Answers
a) The method used to calculate GDP should be the expenditure approach, which adds up total consumption (C), investment (I), government spending (G), and net exports (X-M).
Solution to the rest of the questions in detailb) Using the expenditure approach, the GDP can be calculated as follows:
GDP = C + I + G + (X - M) = 30 + 15 + 20 + (50 - 70) = 25.
c) The value of net exports can be calculated as:
Net exports = Exports - Imports = 50 - 70 = -20
d) The method that cannot be used with the given data is the income approach.
e) The data is incomplete because the information provided only covers some of the components of GDP, such as consumption, exports, rent, investment, government spending, and wages. Information on other components, such as net taxes, subsidies, and depreciation, is not provided, making the data incomplete for calculating GDP using the income approach.
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state accounts are audited under the direct supervision of the
Answers
State accounts are audited under the direct supervision of the state auditor. Examiner General is the sole power endorsed in the Constitution endowed with the obligation of review of records.
The State Auditor's Office (SAO) develops strategies for making government more effective and efficient and provides citizens with independent and open examinations of how state and local governments use public funds.
In 48 states, the auditor is a state-level position with administrative authority over the state's accounting and financial operations. In addition, auditors conduct internal government audits and investigate allegations of fraud as watchdogs for other state agencies.
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2. Once someone is promoted to facility manager, the job becomes easier because the person has subordinates who can help them. Therefore, they do not need to spend as many hours at the facility. a. True b. false
Answers
The statement "Once someone is promoted to facility manager, the job becomes easier because the person has subordinates who can help them. Therefore, they do not need to spend as many hours at the facility" is false because the promotion to the position of facility manager often means that more responsibilities are entrusted to the person holding that position and the job becomes more challenging.
Facility management involves a wide range of responsibilities and duties that are essential for the smooth operation and maintenance of a facility.
Once someone is promoted to the position of facility manager, they become responsible for supervising the daily operations of the facility, coordinating with various teams, overseeing facility maintenance and repairs, ensuring compliance with safety and health standards, and managing the facility's budget and resources.
As such, the job of a facility manager can become more demanding after their promotion. Although subordinates may provide support, they do not take away the facility manager's responsibility for ensuring that all aspects of the facility's operation are running smoothly.
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A fan base is, in most ways, quite similar to a customer base.
A. False
B. True
Answers
Which of the following jobs in aviation would
involve flying rescue personnel into a
hazardous situation, such as a fire?
A. air traffic controller
B. helicopter pilot
C. commercial aircraft pilot
D. private aircraft pilot
Answers
Answer:
d
Explanation:
Two way how the government impacts/affects the economy?
Answers
Explanation:
The government may also adjust spending, tax rates, or introduce tax incentives. ... As a result, these elected members of the government have a great deal of influence on the economy. Fiscal and monetary policies are intended to either slow down or ramp up the speed of the economy's rate of growth
Answer:
adjusting the cost of borrowing money (by lowering or raising the interest rate)
managing the money supply
and controlling the use of credit.
Which of the following would not cause the market supply of cell phones to change?
Group of answer choices
a Telecommunications are deregulated, and anyone who wants to can produce and sell cell phones.
b Taxes levied on cell phone production are reduced.
c A reduction in the demand for cell phones causes the price to fall.
d A cheaper technology for producing plastics used in producing cell phones is developed.
Answers
The option that would not cause the market supply of cell phones to change is a reduction in the demand for cell phones causing the price to fall. Option C.
The market supply of cell phones would only be affected by changes in production costs, regulations, or input prices, such as taxes or the technology used in production.
However, other options: a) Telecommunications are deregulated, and anyone who wants to can produce and sell cell phones. b) Taxes levied on cell phone production are reduced. d) A cheaper technology for producing plastics used in producing cell phones is developed will cause the market supply of cell phones to change.
Hence, the right answer is option C.
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mojo mining has a bond outstanding that sells for $2,138 and matures in 16 years. the bond pays semiannual coupons and has a coupon rate of 6.82 percent. the par value is $2,000. if the company's tax rate is 21 percent, what is the aftertax cost of debt?
Answers
To calculate the after tax cost of debt, we first need to calculate the semiannual coupon payment: Coupon payment = Par value x Coupon rate / 2
Coupon payment = $2,000 x 6.82% / 2 = $68.20
Next, we need to calculate the yield to maturity (YTM) of the bond. We can use a financial calculator or an Excel spread sheet to do this. Assuming a YTM of 4.5%, we get a bond price of:
Bond price = $68.20 / (1 + 4.5%/2)^32 + $2,000 / (1 + 4.5%/2)^32
Bond price = $2,138.09
Since the bond is selling at par, the YTM equals the coupon rate of 6.82%. Therefore, the before-tax cost of debt is 6.82%.
To calculate the after tax cost of debt, we need to take into account the company's tax rate of 21%. The after-tax cost of debt is:
After-tax cost of debt = Before-tax cost of debt x (1 - Tax rate)
After-tax cost of debt = 6.82% x (1 - 21%)
After-tax cost of debt = 5.38%
Therefore, the after tax cost of debt for Mojo Mining is 5.38%.
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Throughout the history of the United States, central banks were created and disbanded with much controversy until _____________ ensured that a central bank was needed.
Answers
Central banks were established and dismantled throughout American history amid considerable controversy until the bank collapse of 1907 made a central bank necessary.
Thomas Goddard has referred to Robert Morris as "the father of the system of credit and paper circulation in the United States" since he assisted in establishing the Bank of North America in 1782 while serving as Superintendent of Finance.
Congress eventually approved an ordinance to incorporate a privately subscribed national bank, following in the footsteps of the Bank of England, as the ratification of the Articles of Confederation in early 1781 had given it the sovereign power to issue bills of credit.
However, due to complaints of "alarming foreign influence and fictitious credit," preference of foreigners, and unfair rules against less corrupt state banks producing their own notes, it was prevented from performing its intended duty as a statewide national bank.
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