Suppose that a competitive industry is buying and selling at an equilibrium price of $12. Now suppose that demand increases. If the market is an increasing cost industry, which of the following would we expect to happen in the long run? (select all that apply) The equilibrium price will be lower than $12 in the long run The equilibrium price will be at the minimum firm's LAC The equilibrium price will stay at $12 in the long run The equilibrium price will be higher than $12 in the long run

Suppose that a competitive industry is buying and selling at an equilibrium price of $12. Now suppose that demand increases. If the market is an increasing cost industry, which of the following would we expect to happen in the long run? (select all that apply) The equilibrium price will be lower than $12 in the long run The equilibrium price will be at the minimum firm's LAC The equilibrium price will stay at $12 in the long run The equilibrium price will be higher than $12 in the long run

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
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End of Chapter 3.2 Question Help Assume the market price is $20. 48- MC The graph shows a firm in a perfectly competitive market operating at a loss. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. 44- 40- 1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 36- ATC 2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 32- 28- 3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area. AVC 24- Carefully follow the instructions above, and only draw the required objects. In order to more easily and accurately label the objects drawn in your graph, 20- use 4-directional arrow tool to reposition overlapping labels, as necessary. sure 16- 12- 8- 4- Quantity Click the graph, choose a tool in the palette and follow the instructions to create your graph. AIl narts showing Clear All…
The let graph shows the world market for wheat. The right graph shows the cost curves and the marginal revenue curve of an individual wheat farmer at the initial long-run equilibrium The world population increases. In the left graph, draw the new demand curve. Label it Draw the market supply curve that returns the wheat market to its long-run equilibrium. Label it Draw a point to show the new long-run equilibrium price and quantity In the right graph, draw a point to show the firm's price and quantity in the long run >>>Draw only the objects specified in the question 16 124 Price (dollars per bushel) 10 P₁ 05 10 15 20 25 30 35 40 Quantity (bons of bushels per year) C Price and cost (dollars per bushel) 20 MC 10 ATC 124 M 10 MAR 200 650 100 150 200 250 300 350 400 Quantity (thousands of bushels per year) 0 a 3
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
why the answer is 150. Please answer correct calculation asap plz Don't answer by pen paper plz
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Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT PER WEEK TOTAL COSTS AFC AVC ATC MC 0 $100 1 150 2 175 3 190 4 210 5 240 6 280 7 330 8 390 9 460 10 540 Fill in the missing values in the table. Suppose the equilibrium price in the table lamp market is $50. How many table lamps should Harry produce, and how much profit will he make? If next week the equilibrium price of table lamps drops to $30, should Harry shut down?
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Imagine that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per kilogram of turkey and a quantity of 600 million kilograms per year. Imagine the department of health issues a report saying that eating turkey is bad for your health.
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