QUESTION 24 Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. a. Industry X Price per unit of X (S) Price per unit of Y ($) 0 so b. Industry Y Q¹0⁰ S¹ D¹ Units of X SO DI Dº Units of Y Figure 12.4 There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of sº and Dº. Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, firms in sector X are now earning profits; breaking even O breaking even; breaking even O earning profits; suffering losses breaking even; suffering losses and firms in sector Y are now

QUESTION 24 Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. a. Industry X Price per unit of X (S) Price per unit of Y ($) 0 so b. Industry Y Q¹0⁰ S¹ D¹ Units of X SO DI Dº Units of Y Figure 12.4 There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of sº and Dº. Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, firms in sector X are now earning profits; breaking even O breaking even; breaking even O earning profits; suffering losses breaking even; suffering losses and firms in sector Y are now

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Homework (Ch 14) 1. There must be many buyers and sellers-a few players can't dominate the market. 2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for th problem that a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario Competitive? In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same speed. Several stores in the mall sell hooded sweatshirts. Each store's sweatshirts reflect the style of that particular store.…
Answer the second part
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.
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