PRICE (Thousands of dollars per fire engine)1101009082R 829 RR70Mo10012False3 4S 07QUANTITY (Fire engines)Demand1Revenue LostRevenue Gainedincrease production from 8 to 9 fire engines because theTrue or False: If alternatively Mo's Hook NLadder were a competitive firm and output effect$80,000 to $60,000 would result in a decrease in the production quantity, but price effect otal revenue.O True(C)dominates in this scenario.e market price for an engine, decreasing its price from Mo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Mo initially produced eight trucks, but then decidedto increase production to nine trucks. The following graph gives the demand curve faced by Mo's HookNLadder. As the graph shows, in order to sell theadditional fire truck, Mo must lower the price from $80,000 to $60,000 per truck. Notice that Mo gains revenue from the sale of the additional engine,but at the same time, he loses revenue from the initial eight 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 eight engines by selling at $60,000 ratherthan $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at$60,000.PRICE (Thousands of daars perfeMo2***1101501QUANTITY (Fe engines.Demand.Revenue LostRevenue GanedIncrease production from a to fire engines because the(?)Tru shouldternatively Mo's HookNLadder were a competitive firm and 160,000 were the market price for an engine, decreasing its prire frshould not would result in a decrease in the production quantity, but an increase in totalOthedominates in this scenario,

A perfectly competitive market is a theoretical market body where all companies offer homogeneous…

PRICE (Thousands of dollars per fire engine 110 100 90 80 75 3 889RRS Mo 60 50 2 true O False 3 4 S 0 7 QUANTITY (Fire engines) Demand 1 Revenue Lost increase production from 8 to 9 fire engines because the True or False: If alternatively Mo's HookNladder were a competitive firm and output effect $80,000 to $60,000 would result in a decrease in the production quantity, but price effect Revenue Gained dominates in this scenario. otal revenue. e market price for an engine, decreasing its price from

PRICE (Thousands of dollars per fire engine 110 100 90 80 75 3 889RRS Mo 60 50 2 true O False 3 4 S 0 7 QUANTITY (Fire engines) Demand 1 Revenue Lost increase production from 8 to 9 fire engines because the True or False: If alternatively Mo's HookNladder were a competitive firm and output effect $80,000 to $60,000 would result in a decrease in the production quantity, but price effect Revenue Gained dominates in this scenario. otal revenue. e market price for an engine, decreasing its price from

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Part D E
QUESTION 5 Price 10 97 8- 7+ 6 3 2 MC ATC AVC Pl P2 P3 P4 + + 1 2 3 1 S 6 7 N Quantity At the price level labeled "P2," what happens in the short-run (SR) and long-run (LR) O SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price remains the same. SR: This firm will have zero economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have zero economic profit. LR: Price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price rises. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price remains the same. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price rises.
310 185 170 95 80 65 $ A profit-maximizing firm will break even when market price is $ SMC If market price is $80, a profit-maximizing firm will produce ATC 0 1100 1600 1900 The figure above shows cost curves for a perfectly competitive firm. Suppose that market price is $310. A firm producing 1 700 units of output should produce AVC 9 units of output instead, to earn profits of $ units of output and earn profits of $
2. Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a particular firm operating in this PRICE (Dollars per wind chime) 40 36 32 28 24 20 16 2 8 4 0 0 MC 2 ATC AVC 6 4 8 QUANTITY (Thousands of wind chimes per day) + 10 12 14 16 18 20 market: a) In short run, at a market price of $26 per wind chime, how much will firm choose to produce per day? How do you know? b) If the market price is $26 in the short run, and the firm chooses to produce the quantity you obtained in question (a), indicate the area that represents firm's profit or loss in short run on the graph. c) What is this firm's shutdown price, that is the price below which it is optimal for the firm to shut down in short run? d) long run, all firms can enter and exit the market, and all entram the same costs as above. As this mark
I need answer of second part and only handwritten otherwise i will dislike
Price and cost (dollars per ride) The graph shows the market for the two zipline firms that operate in a resort city. If the firms decide to compete, then together they will produce rides at a price of per ride. 60 O A. 400: $30 MC O B. 400; $50 50 O C. between 200 and 400: between $30 and $50 40 O D. 200: $30 O E. 200; $50 30 20 'D 10 MR 100 200 300 400 500 Quantity (number of rides)
Suppose that there are exactly 1000 firms in the short-run in the market for widget production. The market is perfectly comp below: 100 6 75 50 25 10 20 MC 5 b. 3000 O c. zero d. 5000 ATC AVC 80 100 123 140 Market demand for widgets is given by the following equation: Q-140,000-400P What is the long-run equilibrium profit level per firm? O a. 1500 quart
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Please see the attached12
AVC, ATC,MC 110 80 76 " 50 40 30 29 18 MC ATC 1234567H0 11 12 13 14 Output per period O a Loss of $90 O b. Profit of $180 O c. 50 Od. Profit of $6300 The Competitive Industry and Firm Refer to the figure above to answer this question for a representative firm in a perfectly competitive market. Suppose that the market price is $70. What is the firm's maximum profit (or minimum loss)?
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2. Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a particular firm operating in this PRICE (Dollars per wind chime) 40 b) 36 32 28 24 20 16 2 8 4 0 MC 0 2 4 + 10 12 14 16 18 20 QUANTITY (Thousands of wind chimes per day) 8 market: a) In short run, at a market price of $26 per wind chime how much will firm ATC AVC 6 the market price is $26 in th quantity you obtained in question (a), indicate the area that represents firm's profit or loss in short run on the graph. c) What is this firm's shutdown price, that is the price below which it is optimal for the firm to shut down in short run? d) In the long run, all firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. e) Graph the…