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.
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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. In which of the changes to market conditions might we be certain that the market price will increase, but without knowing whether the quantity traded will increase or decrease?a) A cold winter increases the demand for energy, and the development of renewable energy supply increases the market supply.b) A hot summer increases the demand for ice cream, but an illness among dairy cows reduces the supply of milk for making ice cream.c) A renewed lockdown reduces the demand for the restaurant sector at the same time as increasing food prices reduces the market supply.d) Awareness of skin damage causes an increase in demand for sunscreen, at the same time as the cost of raw materials is falling. 2) We would expect the demand for a brand of coffee beans to be more price elastic than the demand for bags of coffee beans because:a) Not all consumers are able to grind coffee beans.b) The market for the brand of coffee beans is much smaller than the market for all coffee beans.c) There is a…
1. Suppose that other things are constant, Thailand's Department of Commerce (TDC) estimate the models of market demand and supply equations of premier chicken (local) as shown below: Qd=-120p +16000 Qs =80p-4000 (a) Assume that the premier chicken market is in equilibrium, calculate market price and market quantity of premium chicken in Thailand (b) Based on the outcomes in (a), now suppose TDC impose a price floor of 110 Baht per unit on market of the premium chicken. Analyzes the impacts of the policy on the market price and quantity: i.e. the market price goes up or down from what to what and the market quantity goes up or down from what to what, and any shortage or surplus in the market, if any, how much? (c) Given the results in (b), calculate the price elasticity of demand for the premium chicken. Is the demand elastic, inelastic, or else?
Price (Php/kg) 5 10 15 Total Cost of production (Php) Average Price Average Quantity qs 1 (pc) 5 10 15 80 10 10 qs 2 (pc) 5 15 35 2. Compute the net income or profit of Suppliers 1 and 2) net income or profit and the supply curve (? 65 10 18.33 Qs (pc) 1. In one figure, graph the two individual supply curves and the market supply curve (assume that the market only has two suppliers) What is the relationship between the
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

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