Consider a Competitive Industry and a Price-Taking Firm That Produces $Q _ { d } = 10,000 - 10,000 P + 1.0 M$

question 53

Multiple Choice

Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: $Q _ { d } = 10,000 - 10,000 P + 1.0 M$ Supply: $Q _ { s } = 80,000 + 10,000 P - 4,000 P _ { I }$ where Q is quantity,P is the price of the product,M is income,and $P _ { I }$ is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and $P _ { I }$ for 2021: $\hat { M } = \$ 50,000 \text { and } \hat { P } _ { I } = \$ 20$ The manager also estimates the average variable cost function to be $A V C = 3.0 - 0.0027 Q + 0.0000009 Q ^ { 2 }$ Total fixed costs will be $2,000 in 2021.What is the price forecast for 2021?

• A)$2
• B)$2.50
• C)$2.75
• D)$3
• E)none of the above

Understand the impact of currency valuation on international trade.

Identify the components of GDP and their relationship with trade.

Understand the timeframe of significant shifts in trade patterns and agreements.

Understand the psychological blocks to creativity and strategies to overcome them.

---

Definitions:

Fertility Rate

The average number of children that would be born to a woman over her lifetime.

Infant Mortality

The death of infants and young children under the age of one year, often used as an indicator of the health and societal conditions of a country.

Life Expectancy

The average period that an individual is expected to live, based on statistical analysis.

Immigration

The action of coming to live permanently in a foreign country.