Assume that banana squash is traded in a perfectly competitive market in which thedemand curve captures buyers' full willingness to pay while the supply curve reflectsall production costs.For each of the following situations, indicate whether the total output should beincreased, decreased, or kept the same in order to achieve allocative and productiveefficiency.The maximum willingness to pay exceeds minimum acceptable price. ( increased,decreased, or kept the same) <--Choose a correct answer!b. Marginal Cost > Marginal Benefit. ( increased, decreased, or kept the same)а.く--Choose a correct answer!Total surplus is at a maximum. ( increased, decreased, or kept the same) <--Choose a correct answer!С.d. The current quantity produced exceeds the market equilibrium quantity. (increased, decreased, or kept the same) <--Choose a correct answer!Blank # 1Blank # 2Blank # 3Blank # 4

A perfectly competitive market is the market in which there are many sellers selling homogeneous…

Answered: Assume that banana squash is traded in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Maximizing total surplus results in all of these EXCEPT: [6.2.1 Markets in Equilibrium Often Maximize Total Surplus] A no deadweight loss. B maximizing allocative efficiency. all mutually beneficial trades taking place. D) maximizing productive efficiency.
1
7..Assume that we have a fixed supply of a depletable resource to allocate between two periods. Assume further that the demand function is constant in the two periods, the marginal willingness to pay is given by the formula P = 12 - 0.5q, and marginal cost is constant at $4 per unit. The total supply is 2 units. What percent of the total should be consumed during the first period if the discount rate is 2%?
Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
1. The village of Copsi has 100 identical residents who all love the local drink, Popsi. Each resident of Copsi has the following willingness to pay for Popsi: First bottle: $5 Second bottle: $4 Third bottle: $3 Fourth bottle: $2 Fifth bottle: $1 Sixth bottle: $0 The equilibrium price of Popsi is $1/bottle. The cost of producing Popsi is $1/bottle, no matter how many bottles are produced. (note: what will the supply curve for Popsi look like? Hint: Perfectly elastic) a. Draw a supply-and-demand diagram of the market of Popsi. To make it simpler, draw the demand curve for just one resident. b. How many bottles of Popsi will each resident consume? Please calculate a value. C. How much consumer surplus will each resident get? Please calculate a value. d. How much economic surplus is created per resident of Copsi? Please calculate a value.
If a competitive market is in equilibrium, then: Prices are such that supply is equal to demand. Supply is equal to the average cost curve. Each individual buyer is purchasing their optimal bundle, given prices and incomes. Firms still wish to increase production along the intensive margin, given prices. O More than one of the above. No answer.
Only part (b) please, thank you!
PRICE 5. Market efficiency and market failure The following graph shows equilibrium in a free market, with equilibrium quantity of Qu- QUANTITY Supply Demand (?) For any level of output equal to Q, a buyer values a unit of goods in this market the unit will cost a saler Suppose now that an individual firm that produces goods in this market has the power to influence market price, leading to an outcome different from the free market equilibrium illustrated in the previous graph. This is an example of ▼ due to
5. Consider the price-supply function p= S(x) = 5+ 0.1x. (a) Find the equilibrium quantity a if the producers' surplus at ī is 500 pesos. (b) Find the corresponding equilibrium price, p. (c) If p = D(x) = ax² + b is the price-demand equation, find the values of 2000 a and b so that the consumers' surplus at the equilibrium point is 3 pesos.
a. What is the consumer surplus at a price of $7? b. What is producer surplus at a price of $7? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
11) There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y. These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 150 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 80, PY = 130 B) PX = 40, PY = 65 C) PX = 60, PY = 120 D) PX = 30, PY = 80 12) There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y. These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is…

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