O A. left, remain unchanged in both panels O B. left; shift upward in the right panel Price ($) O C. right, shift downward in the right panel O D. right; remain unchanged in both panels O E. right; remain unchanged in the right panel only .………………...…………….. Quantity D Q Quantity -d₁ Consider the figures above. The left panel shows the industry supply and demand lines. The right panel shows an individual firm's demand line. If there is a decrease in the cost of the productive inputs used in this industry, the industry supply line will shift to the in the left panel, and the demand line will B

O A. left, remain unchanged in both panels O B. left; shift upward in the right panel Price ($) O C. right, shift downward in the right panel O D. right; remain unchanged in both panels O E. right; remain unchanged in the right panel only .………………...…………….. Quantity D Q Quantity -d₁ Consider the figures above. The left panel shows the industry supply and demand lines. The right panel shows an individual firm's demand line. If there is a decrease in the cost of the productive inputs used in this industry, the industry supply line will shift to the in the left panel, and the demand line will B

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

See similar textbooks

Similar questions

31) What is total fixed cost at the profit-maximizing quantity? 32) When the process of entry and exit has ended in a competitive market, are firms’ profits positive, negative, or zero? Why is this true? 33) When a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, the industry is known as a?
E1
Typed plz and Asap Thanks
Price ($) OA. left; shift upward in the right panel O B. right; remain unchanged in both panels O C. right; shift upward in the right panel O D. right; remain unchanged in the right panel only O E. left; remain unchanged in both panels Quantity D Price ($) Quantity _d₁ Consider the figures above. The left panel shows the industry supply and demand lines. The right panel shows an individual firm's demand line. If there is an increase in the cost of the productive inputs used in this industry, the industry supply line will shift to the demand line will in the left panel, and the
Price (dollars per pound) S Market price 2 0 10 20 30 Supply of apples 40 Demand for apples 50 Quantity (thousands of pounds) Price and cost (dollars per pound) Market price 2 10 يلا 20 30 40 ATC -D-MR 50 Quantity thousands of pounds) Given the two diagrams, the left showing the market supply and demand, the right showing a typical individual firm in this competitive market, what would you expect will happen over time? Existing firms will increase output with positive profits. Existing firms will exit the market and average profits by market firms will remain positive. New firms will enter the market and average profits by market firms will remain positive. Existing firms will exit the market and average profits by market firms will be zero in the long run. New firms will enter the market and average profits by market firms will be zero in the long run.
Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. RICE (Thousands of dollars per fire engine) 78°F Sunny 200 180 F1 160 140 120 100 80 60 40 F2 -0- F3 0+ F4 Demand F5 Revenue Lost Revenue Gained OL…
The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 10 V ATC The firm will receive $ MR Quantity/time The firm will maximize its profit at a quantity of▼ units. D Options: 6, 8, 9, or 10 After choosing the profit maximizing quantity, the firm will charge a price of in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is $ The maximum profit the firm can earn in this situation is How will the situation change over time? Options: 6,8 10, or 24 per unit for this output. O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. O This market is already in long-run equilibrium, and will not change throughout time. O Losses will induce firms to leave…
c. Suppose that the demand for Molly's product increased by three units at every price level. Complete the table below. Total Revenue Marginal Cost Quantity per Period Price $30 30 29 28 27 26 25 24 22 20 $ Marginal Revenue $ $ Total Cost $ d. What will be her new profit-maximizing output and price, and what will be the amount of her profit? Output: Price: $ Profit: $
The figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right). Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A. Price 6 Cost 17 D 8 10 12 Quantity ATC O the price is $1.00 and the quantity sold is 6 units O the price is $3.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 4 units Quantity Refer to the figure above. Suppose that the market has reached the long-run equilibrium. Then, due to news of the product's defects and recall, the demand falls by 2 units at each price. The market will tend toward the new long run equilibrium where
er 11 i Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be Multiple Choice OO O the same as the initial equilibrium price, but the new industry output will be greater than the original output. greater than the initial price, and the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output. the same as the initial equilibrium price, and the industry output will remain unchanged. 23 11,229 X OCT all Z A
a. Demonstrate what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight-loss supplement. On the market graph, you will shift a curve (or curves). On the firm's graph, use "Price 2" to draw a new price line for the firm. On both graphs, indicate the new equilibrium points with the points labeled B. b. Now, demonstrate the changes that get both graphs back to long run equilibrium. Use shift(s) for the market and "Price 3" for the firm. Indicate the new long-run equilibrium with the green points labeled C.
(A) what price will prevail in this market? (B) what quantity is produced? (C) how much profit(loss) does each firm make? (D) what happen to the price of two more identical firms enter the market?