Suppose the government regulates the price of a good to be no lower than some minimum level. Moreover, suppose firms misinterpret the regulated price as a signal to produce more output. Using the graph to the right, compute this fictional industry's net gain or loss resulting from this policy. As a whole, firms in this industry will experience a net of $ because of this policy. (Enter your response rounded to the nearest whole number.) C Price ($) 4.25 3.25 :90 130 170 S D Quantity

Suppose the government regulates the price of a good to be no lower than some minimum level. Moreover, suppose firms misinterpret the regulated price as a signal to produce more output. Using the graph to the right, compute this fictional industry's net gain or loss resulting from this policy. As a whole, firms in this industry will experience a net of $ because of this policy. (Enter your response rounded to the nearest whole number.) C Price ($) 4.25 3.25 :90 130 170 S D Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the government regulates the price of a good to be no lower than some minimum level. Moreover, suppose firms misinterpret the regulated price as a signal to produce more output. Using the graph to the right, compute this fictional industry's net gain or loss resulting from this policy. Price ($) As a whole, firms in this industry will experience a net of $ because of this policy. (Enter your response rour nearest whole number.) loss 4.50 3.50 gain Q ☑ S Ps = $5.50 D :100 140 180 Quantity
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At these levels of output the marginal revenue in the manufactured items market is and the marginal revenue in the semimanufactured raw materials market is . At these prices, the price elasticity of demand in the manufactured items market is and the the price elasticity of demand in the semimanufactured raw materials market is . (Hint: ED=PMR−P��=�MR−�) What are the total profits if the company is effectively able to charge different prices in the two markets? . If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are per ton and tons respectively. The total profits in this situation is .
Feedback Imagine that the flat-screen TV market is made up of one large firm that leads the industry and sets its own price first, and another firm that follows the leader when deciding its own profit-maximizing strategy. The leader has a cost function of c₁ (91) = 5q1, and the follower has a cost function of CF (ar) = 4, where Q =q₁ + qr. Total market demand for flat-screen TVs is given by the function Q = 250.00-2p. Calculate the following values: Leading firm's production: q = Follower firm's production: qp = Equilibrium price: p= $49.37 9 OF 16 QUESTIONS COMPLETED 118.33 32.92 (Round to two decimals if necessary.) (Round to two decimals if necessary.) (Round to two decimals if necessary.) See Hint 4 VIEW SOLUTION SUBMIT ANSWER
Caprica Corporation is a large conglomerate that has interests in various industries such as mining, oil refining, chemicals, and consumer goods. In the chemical industry, Caprica produces and sells Kalocin, a substance used in the production of most analgesic drugs. Caprica recently acquired the only firm that controls the extraction of a key raw material used to produce Kalocin. Jane Harris, an industry expert, expects the total surplus in the domestic market for Kalocin to fall following this acquisition. Her colleague, Brian Hall, disagrees. He feels that the acquisition will in fact increase efficiency in the market. Which of the following, if true, will most strengthen Jane's argument? O A. The net benefit accruing to Caprica will increase following the acquisition. ⒸB. Caprica's per-unit revenue before the acquisition was equal to the cost of producing an extra unit of Kalocin. O C. The demand for analgesic drugs is expected to increase in the coming year. O D. A Sri Lankan firm…
Sketch the microeconomics graph of the article, Industrial Demand for platinum driving significant supply shortfall
Refer to the diagram to the right. The equation for market demand is given by: D(p) 950 10p 100.00 90.00- 80.00- The equation for the supply curve of all other firms is given by: So(p)=-400+20p At the market equilibrium price of $45.00, the residual demand for a given firm is: ☐ units (enter your response as an integer). At a market price of $42.31, the residual demand for this same firm is: ☐ units (enter your response as an integer). AQ The slope of this firm's residual demand curve is: ΔΡ (enter your response as an integer. Include a minus sign if necessary). -C Price 70.00- 60.00- 50.00-45.00 40.00- 30.00- 20.00- 10.00- 0.00+ The Market 500 p = 42.3° 0 100 200 300 400 500 600 700 800 900 1 Quantity (per week)
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Please see how I've responded to the 2 questions below...Do you concur are am I off track here. What will the dollar amount of economic gain or economic loss be? The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5 What will be the price and quantity where the firm will shut down? Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units
Using the image please find: a. Find the total revenue function, using the fact that there is no revenue when no units are sold. R= b. Find the demand function, using the relation between price, demand, and revenue. P=
Question 2 a) The supply curve of a product is Q = b) The number of kilograms Q of tomatoes harvested from a field in a day is given by the production function, Q = 150L¹/³. Find the profit maximizing number of people to employ on this farm if each kilogram of tomatoes is sold for 20 cedis, and each worker is paid an average wage of 40 cedis per day. c) A firm is breaking even in a competitive market. Is this firm making zero profits? Explain d) A car wash business washes 11,000 cars per year. The price charged per vehicle washed is 10 cedis. The total cost (total economic cost) of washing these 11000 cars each year is given as 120,000 cedis. Included in this total cost is a fixed cost of 15 percent of the 160,000 cedis capital provided by the financier of this car wash. That is, the financier could have earned 15 percent interest on this capital in the money market if he had not used it to set up this car wash. Is this car wash making profits at the end of the year? Compute the…