This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have ... (Read 77 times)

folubunmi

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than 30 million in ransom and insurance premiums have shot up.
 
  The pirate activity and increase in premiums means that the expected wealth of boat owners who sail near Somalia is ________. A) decreasing
  B) increasing
  C) staying the same
  D) decreasing only if they have insurance

Question 2

How does a firm in monopolistic competition determine its price and quantity? What type of profit can it make in the short run and the long run?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

allisonblackmore

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The firm produces where its marginal cost equals its marginal revenue. Then the price is determined from the demand curve and is the highest price at which people will buy the quantity produced. The firm can make a positive economic profit, zero economic profit, or incur an economic loss in the short run. In the long run, the firm cannot make an economic profit; it can only make zero economic profit, that is, its owners make a normal profit.


folubunmi

  • Hero Member
  • *****
  • Posts: 524
Reply #2 on: Jun 29, 2018
Correct answers!


allisonblackmore

  • Sr. Member
  • ****
  • Posts: 330
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Optimal foraging behaviour in shore crabs. Optimal foraging behaviour in shore crabs.
On May 15, 1916, after deliberating for one hour, an all-white jury in Waco, Texas, found seventeen- On May 15, 1916, after deliberating for one hour, an all-white jury in Waco, Texas, found seventeen-
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ... Harry and Gus fish the same lake together from the same boat. Each morning Harry typically ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Kindergarten school year book Kindergarten school year book
Video: Simple Diffusion - gases and nonpolar compounds transport

For a complete list of videos, visit our video library