a) Construct the Demand Curve b) Construct the short-run cost curves c) Construct the short-run industry curve d) Construct the long-run industry supply curve e) Suppose 50 more identical consumers show up
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- If an industry's long-run average total cost curve has a negative slope over an extended range of quantity (as shown on the diagram here), what is the most likely market structure for this industry? $ Long-run ATC Quantity The industry consists of firms of various sizes. The industry consists of many small firms. The industry is monopolistically competitive. The industry is monopolistic.Q4) Answer the following, providing a graphical illustration along with your answer where necessary: a) What is the profit maximising condition? b) Explain what is meant by abnormal profit? What is the adjustment process from short-run abnormal profit to long-run equilibrium in a perfectly competitive market? c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A's payoff/Firm B's payoff) Firm A Price £2 Price £1 Assume you are the pricing manager at Firm A; i) ii) Price £2 £10,000/£10,000 £12,000/£5,000 Firm B Price £1 £5,000/£12,000 £6,000/£6,000 What is your payoff for a 'maximin' strategy? What is your payoff for a 'maximax' strategy? Does a dominant strategy exist within this prisoners' dilemma?1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: 2) A firm that is motivated by self interest should 3) If price is above the equilibrium level, competition among sellers to reduce the resulting 4) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to 5) Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement 6) In a market economy the distribution of output will be determined primarily by 7) In a competitive market economy firms will select the least-cost production technique because 8) Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut…
- A firm in a perfectly competitive market faces what type of demand curve? unitary elastic perfectly inelastic perfectly elastic none of the aboveAssume that the MBA education industry is constant-cost and is in long-run equilibrium. Discuss what long-run equilibrium means. Market demand increases, but due to strict accreditation standards, new firms are not permitted to enter the market. Explain the nature of the original long-run equilibrium then analyze the determination of a new long-run equilibrium, showing the effects with the aid of graphs for a representative school as well as for the market as a whole. Explain with a compare/contrast analysis how your analysis changes if MBA’s are produced in an increasing cost industry. Page limit, one page and one page for supporting graphs.PRICE (Dollars per pound) 8. Short-run supply and long-run equilibrium Consider the competitive market for rhodium. Assume that no matter how many firms operate in the Industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. COSTS (Dollars per pound) 30,90 100 90 80 70 60 50 40 ATC 30 20 AVC 10 MC 0 0 + 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pounds) The following graph plots the market demand curve for rhodium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the…
- ume the pizza market is a perfectly competitive constant cost industry, and all firms have identical homogenous firms). The market demand and market supply functions for this perfectly competit stry are given below. L 0 1 2 3 4 5 6 7 8 9 q=TP 0 10 20 30 40 50 60 70 80 90 TC 100 205 2.45 280 340 430 545 720 930 1190 P = 30.5-.005Q P = 1.7+.003Q TFC TVC 100 0 100 105 20.50 10.50 100 145 12.25 7.25 100 180 9.33 6.00 100 240 8.50 6.00 100 330 8.60 6.60 100 445 9.08 7.42 100 620 10.29 8.86 100 830 11.63 10.38 100 1090 13.22 12.11 ATC AVC MC 10.50 4.60 3.50 6.00 9.00 11.5 17.50 21.00 26.00Q2: Derive theoretically and graphically the supply curve of an industry.Here i a list of the following conditions of a perfectly competitive market.Which characteristic is wrong for a perfectly competitive market? a)There is complete information b)Firms products are differentiated c)The number of firms is large d)Firms are price takers e)There are any barriers to entry
- On x and y axes, draw ATC, AVC and MC curves and four alternative demand curves that the Perfectly Competitive Firm might face. a) Draw D1 such that the firm makes a profit. b) Draw D2 such that the firm breaks even (profit=0). c) Draw D3 such that the firm is at its shut down point. d) Draw D4 such that the firm would shut down rather than produce.demand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output? [1] 0 [2] 10 [3] 190 [4] 200 [5] 400Which of the following scenarios represents a customer acquisition cost of $100? Multiple Choice A company spends $100.000 on advertising and marketing in one month. They gain 100 new customers that month. A company spends $1.000 on advertising and marketing in one month. They gain 100 new customers in that month. A company spends $100.000 on advertising and marketing in one month. They gain 1,000 new customers in that month. A company spends $100 on advertising and marketing in one month. They gain 10 new customers in that month.