b. Assuming a cookie firm was in equilibrium before the change in demand, and it is a constant-cost industry, demonstrate the effect of the decline on equilibrium price for an individual cookie firm in the short run. Instructions: Using the following graph, use the tool 'MR' to draw the new marginal revenue curve facing the firm between Q=0 and Q=1,000. Then use the 4-point tool 'A' to identify the firm's profit or loss. Price Your Graph Score: 0% 10 9 8 7 4 3 1 0 MR Cookie Firm MC ATC MR 100 200 300 400 500 600 700 800 900 1000 Quantity

b. Assuming a cookie firm was in equilibrium before the change in demand, and it is a constant-cost industry, demonstrate the effect of the decline on equilibrium price for an individual cookie firm in the short run. Instructions: Using the following graph, use the tool 'MR' to draw the new marginal revenue curve facing the firm between Q=0 and Q=1,000. Then use the 4-point tool 'A' to identify the firm's profit or loss. Price Your Graph Score: 0% 10 9 8 7 4 3 1 0 MR Cookie Firm MC ATC MR 100 200 300 400 500 600 700 800 900 1000 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below provides revenue and cost information for a perfectly competitive firm producing computers. How much are total costs if 3 computers are produced? How much are total variable costs if 5 computers are produced? What is the price of a computer? What is the average revenue from producing computers? What is the marginal revenue of producing computers? Over what output range will firm earn economic profits?
. Mr DIY is a new small scale palm oil supplier. There are many small scale palm oil suppliers in the market. The price of oil palm is solely determined by the market demand and supply. Describe the market characteristics of this industry. As Mr DIY is a new firm in the market, his firm is facing a problem of revenue lesser than the total variable costs. Illustrate the situation with an appropriate diagram(s). Evaluate the situation of this firm and provide one suggestion for the firm to sustain in the long run.
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t of 40 40 35 55 30 25 25 20 15 10 5 MC, AC MC AC 9 0 100 200 300 400 500 The graph shows average and marginal cost curves for a typical firm in a perfectly competitive industry in LONG-RUN equilibrium. The long-run equilibrium price of the product is $ In long-run equilibrium the firm will produce units. In long-run equilibrium the firm will earn $ economic profit.
The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. COSTS (Dollars) 100 100 80 90 80 20 70 70 HD 50 40 30 20 0 11 D 10 O MC Price (Dollars per snapback) 15 15 20 25 55 70 85 201 ATC 0 D AVC O 50 60 70 80 QUANTITY (Thousands of snapbacks) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. □ Quantity (Snapbacks) BO 100 ▼ On the following graph, use the orange points (square symbol) to…
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Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.
Please answer F and show steps for the graph
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Suppose that the perfectly competitive tuna Industry is In long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per year. Suppose the Surgeon General Issues a report saying that eating tuna is bad for your health. The Surgeon General's report will cause consumers to demand Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply X Demand 400 600 800 QUANTITY (Millions of cans) 0 0 In the long run, some firms will respond by 5 0 200 0 200 Demand 1000 Shift the supply curve, the demand curve, or both on the following diagram to Illustrate both the short-run effects of the Surgeon General's announcement and the new long-run equilibrium after firms…