Comment on these statements: 1: Supply curve of the Constant cost industry. 2: supply curve of the increasing cost industry. 3: supply curve of the Decreasing lost Industry.
Q: In an increasing cost industry, the long-run market supply curve is _____ because the long run…
A: The expenses that are being incurred by the business for carrying out transactions are known as…
Q: An increasing-cost industry is associated with Multiple Choice a perfectly elastic long-run supply…
A: Supply Curve: The supply curve will help represent the connection between the cost of products and…
Q: Draw a supply and demand diagram showing the effect of a decrease in demand in the long-run for a…
A: The decreasing cost industry is an industry in which the expansion of the output production leads to…
Q: For a firm in Perfect Competition, the Industry Price is equal to $12, Average Total Cost is equal…
A: Short-Run Supply Curve: The short-run supply curve shows the relationship between the market price…
Q: 7 62 10.00 8.00 8 8 64 9.00 7.00 9 9 67 8.00 6.10 10 10 72 7.00 5.00 11 11 79…
A: The table is as follows : Price Quantity Total Cost Marginal cost 10 6 61 - 8.85 7 62…
Q: A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a…
A: Question A typical profit-maximizing firm in a perfectly competitive constant-cost industry is…
Q: QUESTION 10 In an increasing cost industry, the long-run market supply curve is because the long run…
A: D) Upward sloping; average cost Explanation: In an increasing-cost industry (when the long-run…
Q: 1)Which kind of industry would have a downward-sloping long-run supply curve? Select one:…
A: An "industry" implies an unmistakable classification or area of economic activity portrayed by a lot…
Q: Price B с A Cannot be determined C B The graph above depicts the demand, short-run industry supply…
A: In the long run, the industries tend to produce more goods as they have better resources and most…
Q: ATC MC MR Quantity of cherries %24
A: Under perfect competition firms are price takers. The optimum level of output of a perfectly…
Q: Price O Quantity The graph above depicts the demand, short-run industry supply curve and the long-…
A: The short run refers to a time frame when prices of output and some production costs are fixed. The…
Q: The coffee industry is comprised of many firms producing an identical product. Market demand and…
A: An industry comprised of many firms producing an identical product ia a perfect competitive…
Q: Below, the graph on the left shows the long-run average and marginal cost for a typical firm in a…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: What do you think the long-run supply curve looks like for the Chinese furniture runner industry?…
A: Since it provides the economy with value by bringing labour to work on land, production is a…
Q: The wheat industry is comprised of many firms producing an identical product. Market demand and…
A: Firms in perfect competition are price takers. Price is set by market forces of demand and supply.…
Q: b). The Philadelphia water ice industry is a constant cost industry. The demand for water ice…
A: A constant cost industry is an industry whose output can be increased without an increase in the…
Q: An increasing-cost industry is so named because of the positive slope of which curve? A) Each firm's…
A: An increasing-cost industry is an economic idea that alludes to a market or industry wherein…
Q: If a competitive industry is currently losing money what can be expected to happen to the number of…
A: The perfect competitive market is a market where large number of buyers and sellers in the market,…
Q: The data in the table to the right give the total cost, C, and marginal cost, MC, for a profit…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: 1) Use the graph to answer the question below. The quantity is measured in thousands of units.…
A: As per the guidelines answer is given to the first question. (1) As per the diagram given in…
Q: On a graph for a representative firm in a perfectly competitive industry, depict the three cost…
A: Marginal Cost: It refers to the change in the firm's total cost by employing one more unit of the…
Q: The two figures below show (on the left) the industry supply and demand for wheat and (on the right)…
A: Here, the first graph shows the market for wheat and the second graph shows cost functions of a…
Q: Q52 If firms in a competitive industry are earning positive economic profits, in the long run we…
A: Q52 If firms in a competitive industry are earning positive economic profits, in the long run we…
Q: Question: PLease explain in detail with graphical representation of Industry’s long run supply curve…
A: The long run Equilibrium exists when demand and supply intersect which is shown in part b of figure.
Q: The industry in the figure below consists of many firms with identical cost structures, and the…
A: Demand: It refers to goods and services that are consumed by the people. More demand leads to an…
Q: Question 13 If a firm operating in a competitive industry shuts down in the short run, it can avoid…
A: The structure of a market where there are numerous firms competing with each other for selling goods…
Q: a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is…
A: A competitive industry permits firms to openly enter and leave the market and has not many…
Q: Consider the following = 100 units, average to firm do and why? a. Shut down in th b. Shut down in t…
A: The notion concentrates upon a company's short-term production decisions, particularly when…
Q: Costs and Profit Maximization Under Competition: End of Chapter Problem a. Use the variable cost…
A: Fixed cost is the cost that remains the same regardless of how much output the firm produces.…
Q: e following graph shows the market for orange juice. Initially, the market is in a long-run…
A: The curve that depicts different quantities of products and services being demanded at various price…
Q: The table shows cost data for a firm that is selling in a purely competitive market. Average Average…
A: A Perfectly Competitive firm maximizes profit by producing output at a level where Price is equal to…
Q: A perfectly competitive industry consists of many identical firms, each with a long-run total cost…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: At its current level of production a profit-maximizing firm in a competitive market receives $15 for…
A: A competitive market, often referred to as a perfectly competitive market, is a type of market…
Q: Answer the question on the basis of the following demand and cost data for a specific firm. Demand…
A: When all expenditures are covered and paid from total revenue, total profit is calculated.
Q: Compared to the short-run industry supply curve, the long-run industry supply curve will be more *…
A: In economics, the costs of production can be studied under two time periods- the short run and the…
Q: In long-run equilibrium for a perfectly competitive industry, price equals short-run marginal cost.…
A: Long-run equilibrium refers to the state of balance and stability reached by a market or industry in…
Q: Perfect Competition? 1. Explain why the Perfectly Competitive firm is considered a Price taker? 2.…
A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…
Q: The short-run supply curve for a price-taking firm is given by: Select one: a. its short-run…
A: Perfectly competitive markets are characterized as having a large quantum of producers and…
Q: Consider the following costs of a typical firm in a purely competitive industry. The firm has no…
A: According to the given information, there is a perfectly competitive market having no fixed cost. A…
Q: In a competitive market characterized by increasing costs, the long-run industry supply curve gives…
A: In a perfectly competitive market, there are a large number of firms who sell identical products.…
Q: Using diagrams derive a long-run market supply curve for a constant-cost industry, a…
A: The curve that depicts various quantities of goods and services being provided by firms or producers…
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- The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $7.50, a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2 MC y A A 1 B a 10 11 12 ATC AVC 13 Quantity Produce between 10 and 11, for a positive economic profit Produce about 9, for an economic profit of over $9 Produce between 10 and 11, for an economic profit of about $0 Produce about 9, for an economic profit of less than $9 Produce about 10, for an economic profit of about $20The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short - run a profit - maximizing firm would: Produce and earn a negative economic profit Not produce (as it leads to a negative profit) Produce and earn a normal profit Produce and earn a positive economic profit The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short-run a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 6 3 MO O Produce and earn a negative economic profit O Not produce (as it leads to a negative profit) O Produce and earn a normal profit O Produce and earn a positive economic profit ATC AVC 6 bis & QuantityExplain the two concepts listed below and draw a diagram to show a long-run supply curve associated with each. What are the possible causes, respectively? a. Increasing-cost industry b. Decreasing-cost industry
- 10 The industry in the figure given below on the left consists of many firms with identical cost structures, and the industry experiences constant returns to scale. a. Draw the short-run market supply curve up to 4,000 units of output. Instructions: Use the tool provided (SRMSC) to draw the short-run market supply curve. Plot three points total. b. Draw the long-run market supply curve from zero to 4,000 units of output. Instructions: Use the tool provided (LRMSC) tool to draw the long-run market supply curve. Plot only the endpoints across the entire output range (0 to 4,000). Price ($) 50 40 40 Typical Firm Market Price ($) 50 MC ATC 40 30 AVC 20 20 10 0 10 20 20 30 Quantity 40 40 50 50 30 20 20 10 0 D Tools / LRMSC SRMSC 1000 2000 3000 4000 5000 QuantityMC ATC AVC -MR P X Refer to the above diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. The predicted long-run adjustments in this industry might be offset by: entry of new firms into the industry. an increase in resource prices. a technological improvement in production methods. a decline in product demand.If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC) and minimum average total cost $15 (ATC) of a firm, that firm will:___________ a) always shut down. b) always continue to produce.c) produce in the short run but shut down in the long run. d) produce in the long run but shut down in the short run. e) make positive economic profits.
- The diagram to the right shows the long-run equilibrium for a competitive market for three different levels of demand (Do, D₁, and D₂). Assume that firms earn a normal level of profits at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, draw the long-run industry supply curve. Label this curve 'LRIS'. Note: Carefully follow the instructions above and only draw the required object. C Price per unit ($) 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0.0 Po -So 0.4 P₁ P₂ 0.8 1.2 1.6 2.0 Units of output, q (millions) 2.4 2.83. A perfectly competitive individual firm operates in a constant cost industry and produces a level of output q. Suppose that TC = ((1/2)*q²)+ 5,000 and MC = q. a. What question does the supply curve answer? Derive the individual firm supply curve. b. Does the Law of Supply hold for the individual firm supply curve you derived in part (a)? Explain. c. Derive the ATC curve as a function of q. Sketch the ATC curve and the MC curve on the same graph. d. Suppose the market price is P = 125. In the short run, does the firm earn a positive profit or not? How do you know? e. Suppose the market price is currently P = 125. In the long run, will firms enter or exit the industry? How do f. Predict what will happen to the market price as a result of your answer to part (e). Use a graph. g. When the market price changes by a small amount as you describe in part (f), what will happen to the individual firm quantity? Explain using a graph. h. Two market experts comment on your work in parts (e)…Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supply curve is A. an upward-sloping line equal to the sum of the portion of each firm's marginal cost curve that is above minimum average variable cost. B. a horizontal line equal to the minimum point on the typical firm's average total cost curve. C. an upward-sloping line equal to the sum of each firm's marginal cost curve. D. a horizontal line equal to the minimum point on the typical firm's average variable cost curve. E. an upward-sloping line equal to the sum of each firm's supply curve. Suppose that the perfectly competitive market illustrated in the graph to the right is initially in long-run equilibrium (at P₁) and then there is a permanent decrease in the demand for the product (to D₂). Show how the market adjusts in the long run. 1.) Use the line drawing tool to add either a new demand curve or a new supply curve showing the market in long-run equilibrium. Properly label this…
- 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…7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per kilogram) 80 72 64 56 48 40 32 16 8 0 0 4 MC 8 ATC AVC □ 12 16 20 24 28 32 QUANTITY (Thousands of kilograms) 36 The following diagram shows the market demand for copper. □ 40 ? 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 short-run industry…Problems: Question #6: The Phantom Farms bakery produces pumpkin pies according to the following short run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that the bakery can only produce and sell whole pies. AVC = ATC = MC = Quantity (pies) TFC = total TVC = total TC = total fixed cost variable cost average average total marginal cost variable cost cost cost (i) same as (i) 1 14 18 14.0 18 14 2 same as (i) (ii) 28 12.0 14 10 3 same as (i) 38 42 12.7 (v) 14 4 same as (i) 60 (iii) 15.0 16 22 same as (i) 86 90 17.2 18 (vi) same as (i) 116 120 (iv) 20 30 Fill in the five missing cost numbers indicated in the table above. (i) (ii) (iii) (iv) (v) (vi) If the price of pumpkin pies is $22 per pie, how many pies should Phantom Farms produce in the short run? What profit or loss does the firm earn? Explain how you arrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profits or losses. 3
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