1. Farmers are often heard to complain about the high costs ofmachinery, labor, and fertilizer, suggesting that these costsdrive down their profits. Does it follow that if, for example,the price of fertilizer fell by 10 percent, farming (a highlycompetitive industry with low barriers to entry) would bemore profitable? Explain.

While a reduction in the cost of fertilizer may potentially have a positive impact on farmers'…

Answered: 1. Farmers are often heard to complain…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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what is the effect on the market price and output of hambyrgers with reference to the following? A. An increase in the income of consumers B. wide spread disease of beef C. Dramatic improvement in fast food technology
Astro Computers makes onboard vehicle control computers for the Tesla. The production department has gathered data on the costs of several yearly production levels and asked you to help interpret these for them. 1. The data for Astro appear in the graph below. The COO asks what production level he should set for the coming year, if Astro operates in a perfectly competitive market. (the graph is in the picture) 2. Is Astro earning “excess profit” (explain what that means if you think they are) and how other firms will react when they see Astro’s performance? 3. The production department has also done a bit of research on other firms operating in the market for onboard control computers. The graph below shows the relative sizes and cost structures of the four largest firms in the market (Data, Astro, Consolidated and BCS); these four firms combined account for 35% of business in the market for onboard control computers. There are over fifteen firms that supply onboard control computers…
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Explain in detail how purely competitive markets, in the long-run, know how to adjust to and provide the correct output, at the correct price. Give an example of a good or service you might buy that is closest to being in a purely competitive market. Explain your logic.
What type of industry has the characteristics where there are many producers, they are able to differentiate their product, the barriers to entry are low, and a firm in the industry has the ability to manipulate price to a certain extent. What type of industry is this? Will this type of industry be able to enjoy profits in the long run? Why? Also is this firm producing at productivity and allocative efficiency? Why?
See image for question with sub-parts.
I DO NOT NEED THE CHART I ONLY NEED THE QUESTIONS Quantity of Output Total Cost Marginal Cost Average Total Cost 0 $100 1 $120 2 $135 3 $145 4 $160 5 $180 6 $205 7 $240 8 $285 9 $350 10 $440 Approximately where do you think the price will end up in this market over the long run? Explain your answer. Last, instead of assuming a given price, how would you go about finding the equilibrium price if you were given information on market demand? Assume that this market is made up of 10 identical sellers with costs as above, and that market demand can be given as below. It may be useful to construct a column for market supply knowing the cost information per seller and that there are ten identical sellers in the market.
Choose the one alternative that best that answers the question. Assume the market for organic produce is perfectly competitive. All else being equal, as more farmers choose to produce and sell organic produce, in the long-run, Select one: a. The equilibrium price is likely to increase, and profits are likely to remain unchanged. b. The equilibrium price is likely to remain unchanged, and profits are likely to increase. c. The equilibrium price is likely to decrease, and profits are likely to decrease. d. The equilibrium price is likely to increase, and profits are likely to increase. e. Both the equilibrium price and quantity are likely to remain unchanged.
Suppose a profit maximizing firm in a perfectly competitive market currently pays their employees $20 per hour. When their most recently hired employee began working at the firm, their hourly production increased by 5 units. What price must they sell their product for?
The figure below depicts the market supply and demand for the perfectly competitive rollerblade industry. S Price per pair of Rollerblades 1,140 070 50 150 Number of pairs of Rollerblades per week Based on the figure above, if the current quantity demanded of rollerblades is 150 per week, you accurately predict that in the short run, Q Select one: a. price and quantity supplied will increase and quantity demanded will decrease. b. price and quantity supplied will decrease and quantity demanded will increase. c. price, quantity supplied and quantity demanded will increase. d. price, quantity supplied and quantity demanded will decrease.
Q4 Please help me solve this question so I can compare it to my awnser, question 4. Thank you
1. The market for manicures and other nail treatments is very competitive. How would the following developments affect the number of nail treatments that a typical nail salon wants to supply in the short run? a. Heightened concern about their appearance causes people to want more manicures at a given price. b. The government requires all nail salons to pay a new yearly licensing fee to operate. c. Worse job prospects elsewhere in the economy cause more people to want to become manicurists, causing the wages of manicurists to fall.

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