Carl is an apple farmer. Assume there is price taking in the market for apples. SRS is the short-run supply curve and LRS isthe long-run supply curve.Suppose Carl creates a 100% organic apple juice drink. After initial tasting, the demand increases, to the delight of applefarmers everywhere. Please shift the appropriate curve or curves in the graph for the apple market in both the short andlong run.Price per apple (3)1098-10D1SRS23456Quantity of apples (hundreds)78LRSfarmers will produce at MC < ATC,farmers will make zero accounting profit.) farmers will produce at MC = ATC.farmers will produce at MC > ATC.D9 1010Initially, the existing farmers increase production of apples to meet the increased demand. After new farmers have enteredand the market is again in long run equilibrium,

A firm is a price taker and can sell any quantity of the commodity at the market determined price…

Carl is an apple farmer. Assume there is price taking in the market for apples. SRS is the short-run supply curve and LRS is the long-run supply curve. Suppose Carl creates a 100% organic apple juice drink. After initial tasting, the demand increases, to the delight of apple farmers everywhere. Please shift the appropriate curve or curves in the graph for the apple market in both the short and long run. Price per apple ($) 10 9 TO 4 L 2 1 3 Quantity of apples (hundreds) LRS farmers will produce at MC < ATC. ) farmers will make zero accounting profit. farmers will produce at MC = ATC. farmers will produce at MC > ATC. 10 Initially, the existing farmers increase production of apples to meet the increased demand. After new farmers have entered and the market is again in long run equilibrium,

Carl is an apple farmer. Assume there is price taking in the market for apples. SRS is the short-run supply curve and LRS is the long-run supply curve. Suppose Carl creates a 100% organic apple juice drink. After initial tasting, the demand increases, to the delight of apple farmers everywhere. Please shift the appropriate curve or curves in the graph for the apple market in both the short and long run. Price per apple ($) 10 9 TO 4 L 2 1 3 Quantity of apples (hundreds) LRS farmers will produce at MC < ATC. ) farmers will make zero accounting profit. farmers will produce at MC = ATC. farmers will produce at MC > ATC. 10 Initially, the existing farmers increase production of apples to meet the increased demand. After new farmers have entered and the market is again in long run equilibrium,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Tim True increase production from 4 to 5 fire engines because the True or False: If Tim's Fire Engines were a competitive firm instead and $105,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. False dominates in this scenario.
Suppose postal service of pakistan is facing increased competition from firms providing overnight delivery of packages.what will be the effect of this competition on market for mail delivered by post office
Homework (Ch 09) 1. The supply curve in the very short run The following graph shows the annual demand for tortilla chip consumption, which is initially in long-run equilibrium at point D. Suppose that tortilla chips are sold in a perfectly competitive market, and tastes shift away from tortilla chips so that demand shifts leftward from D₁ to D₂. Use the purple line (diamond symbol) to illustrate the supply curve in the very short run. Make sure the line passes through two of the starred points on the graph. PRICE (Dollars per bag) 10 9 0 1 2 C D A B D₂ 3 4 5 6 7 8 QUANTITY (Millions of bags per year) 9 D. 10 Short-Run Supply Curve ?
Behind the Supply Curve: Inputs and Costs Work It Out: Question 2 of 5 The accompanying table shows a car manufacturer's total cost of producing cars. Calculate the variable cost (VC) for the following quantities. VC for a quantity of 0: $ VC for a quantity of 5: $ VC for a quantity of 9: $ 0 Quantity of cars Total Cost $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000 800,000 920,000 1,100,00 0 1 2 3 4 5 6 7 8 9 10
Calculate Edison's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per frying pan) O 35 30 25 20 15 10 1 2 QUANTITY (Frying pans) Marginal Revenue -4 Marginal Cost Edison's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he produces is s which is than the price Edison receives for each frying pan he sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize his profit) is than the price Edison receives for each frying pan he sells. Therefore, curves. Because Edison is a price which is Edison's profit-maximizing quantity corresponds to the intersection of the taker, this last condition can also be written as
Omari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $105,000 to $90,000 per truck. Notice that Omari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) 165 150 135 120 105 Omari 90 75 60 45 30 15 Revenue Lost Demand…
Only typed answer
Suppose government spending increase. Would the effect on aggregate demand be larger if the Federal Reserve held the money supply constant in response or if the Fed were committed to maintaining a fixed interest rate? Explain. Suppose a wave of business pessimism reduces aggregate demand. Show the effect of this shock on your diagram from part a. If the Fed undertakes expansionary monetary policy, can it return the economy to its original inflation rate and original unemployment rate? Now suppose the economy is back in long-run equilibrium and then the price of imported oil rises. Show the effect of this shock with a new diagram like that in part a. If the Fed undertakes expansionary monetary policy, can it return the economy to its original inflation rate and original unemployment rate? If the Fed undertakes contractionary monetary policy, can it return the economy to its original inflation rate and original unemployment rate? Explain why this situation differs from that…
Only typed answer and don't use chat gpt
Give explanation of correct options and explanation of incorrect options don't upload any graph.
2. A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 6 less bottles each week. He turns over the operation to a Managerial Economics student for a week. The goal is to maximize revenue since the faculty member has a vast supply of Gatorade, and any unsold bottles can be sold in future weeks. The student takes over the operation for a week. She says she sold at the revenue-maximizing price of $4 per bottle. How many units sold? Show your work/thought process:
am. 79.