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 88 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?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe
In the past year, about one in five adults in the United States reported symptoms of anxiety ... In the past year, about one in five adults in the United States reported symptoms of anxiety ...
During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ... During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ...
Rock Art: Boat And Sea Battle Rock Art: Boat And Sea Battle
Foods for Baby’s First Year Foods for Baby’s First Year
Video: Rods and Cones Animation

For a complete list of videos, visit our video library