If the newspaper market were perfectly competitive, what would be the quantity, price, consumer surplus, and producer surplus? Draw a point at the equilibrium quantity and equilibrium price if this market is perfectly competitive. Draw and label the consumer surplus. Draw and label the producer surplus. When a perfectly competitive industry is taken over by a single firm, the competitive industry's the monopoly's curve. OA. supply, marginal revenue OB. supply, marginal cost OC. demand, average total cost OD. demand, average variable cost curve becomes

If the newspaper market were perfectly competitive, what would be the quantity, price, consumer surplus, and producer surplus? Draw a point at the equilibrium quantity and equilibrium price if this market is perfectly competitive. Draw and label the consumer surplus. Draw and label the producer surplus. When a perfectly competitive industry is taken over by a single firm, the competitive industry's the monopoly's curve. OA. supply, marginal revenue OB. supply, marginal cost OC. demand, average total cost OD. demand, average variable cost curve becomes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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19 Market Representative Firm MC i of A $7 a MR = P АТС b $5 AVC $2 D1 18,000 70 100 115 Quantity (Q) Output (Q) The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. If the entry of new firms into the market caused the equilibrium Price to decrease to $5, the representative firm would: Select one: а. earn a positive Economic Profit. b. earn a negative Economic Profit. c. shut down in the short-run. d. earn zero Economic Profit. Price $$$
The marginal cost to produce one bottle of developer is $5. There is no fixed cost. Note that this is a market demand, not a firm's individual demand schedule. 1)Calculate total revenue, total cost, marginal revenue and total profit. Quantity Demanded : 0, 10, 20, 30, 40, 50, 60, 70, 80 Price: 40, 35, 30, 25, 20, 15, 10, 5, 0 2) If the market for developer is perfectly competitive, what quantity will be produced? What price will be charged? What will the firm’s profit be? Write a sentence explaining how you determined each of those three answers.
1. Suppose a perfectly competitive firm has a cost function described by TC = 200Q+Q² +225 Each firm's marginal revenue is $240. a. Find the profit maximizing level of output. b. Is this a short-run or long-run situation? How do you know? c. Assuming that this firm's total cost curve is the same as all other producers, find the long-run price for this good.
K Big Top is the only circus in the nation. The graph shows its demand curve and marginal cost curve. Draw the marginal revenue curve Label it Draw a point at the firm's profit-maximizing output and price Draw a shape to show the consumer surplus Label it CS Draw a shape to show the producer surplus Label it PS S Consumer surplus equals and producer surplus equals s >>> Answer to 2 decimal places When the firm maximizes profit, the circus is OA. efficient, marginal revenue equals marginal cost OB. inefficient, marginal benefit exceeds marginal revenue OC. efficient, the marginal benefit from an additional ticket is greater than its marginal cost OD. inefficient, the marginal benefit from an additional ticket is greater than its marginal cost OE. inefficient, marginal revenue equals marginal cost because 1 50- 45- 40 35 30- 25 20- 15- 10- 5+ 0+ 0 Price and cost (dollars per ticket) D MC 100 200 300 400 500 600 700 800 900 Quantity (tickets per show) >>> Draw only the objects specified…
67. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s average cost is TC = 300 + Q2 /3, and marginal cost by MC = (2/3)Q. Suppose there are 10 identical firms in the market. What is the market supply? A. 30Q B. 40Q C. 15Q D. 5Q
Market Representative Firm S1 MC A my a MR = P $3.50 - - АТС $2.50 b. AVC D1 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. O is earning a negative economic profit (loss). is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit.
Give typing answer with explanation and conclusion Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither. maximize total surplus result in some deadweight loss zero economic profit in the long run eliminate consumer surplus
1. Consider the case of a perfectly competitive industry with n identical firms. Each firm's total cost function is given by Ci(q) = 100 + 10q+q² The demand for the good is given by Qd = 400 - 4p a) Find the(long-run)equilibrium in the market. b) Calculate the equilibrium total surplus or welfare. 9 i = 1, ..., n
The figure below shows the industry demand curve and two possible industry supply curves in the perfectly competitive market for cheeseburgers. Price ($) 8 7 6 51 3 2 1 0 3 5 6 B S₂ A S₁ Select one: ● a. an excess supply of 6 cheeseburgers. b. an excess demand of 4 cheeseburgers. O c. an excess supply of 3 cheeseburgers. d. an excess demand of 6 cheeseburgers. 7 8 Cheeseburgers The market depicted in the figure above is initially at equilibrium at Point A. Suppose firms begin to exit the market, causing the supply curve to shift from S₁ to S₂. 9 10 11 12 Q If the price of cheeseburgers remains constant at $5.00, as a result of the decrease in supply there will be
Price or Cost(dollars per unit) Pc MR Later C2 MR B MC Demand QE QC QB QA Later ATC Demand Quantity (units per period) 3. Refer to the graph above. Identify each of the following market outcomes: a. Short-run equilibrium output in perfect competition. b. Long-run equilibrium output in perfect competition. c. Long-run equilibrium price in perfect competition. d. Long-run equilibrium output in monopoly. e. Long-run equilibrium output in monopolistic competition.
20 12 10 0 MC ATC -MR 10 Quantity (units) Figure 11.4.1 Refer to Figure 11.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market O supply will decrease. demand will decrease. O supply and market demand will decrease. supply will increase. O demand will increase.