The accompanying graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals.Place the market supply curve at the correct location on the graph.What happens to the market if a third supplier enters theMarket for Stuffed Animals10market, holding all else constant?MarketMarket supply increases.OFirm 1 and Firm 2 will lower output to accommodatethe new supplier in order to keep market supply7constant.O Market supply decreases.O The emergence of a third supplier will result inhigher prices of stuffed animals.1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000Quantity of Stuffed AnimalsPrice per Stuffed Animal($)Firm 2

In a market, when there is change in the number of firms, it will lead to influence the total output…

Answered: The accompanying graph contains…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the competitive market for rhenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 0 90 80 70 60 V 50 40 ATC 30 20 AVC MC D COSTS (Dollars per pound) PRICE (Dollars per pound) 100 90 80 70 60 The following graph plots the market demand curve for rhenium. 50 40 30 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. 20 100 10 10 0 0 0 5 0 15 20 30 35 40…
3. Profit maximization in the cost-curve diagram Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 ATC 60 50 40 30 AVC 20 MC 10 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans per day) In the short run, at a market price of $50 per pan, this firm will choose to produce 37,500 pans per day. PRICE (Dollars perpan)
The figures below show (on the left) two possible demand curves and (on the right) two possible supply curves in the perfectly competitive hamburger market. Price per hamburger 0 A B D₂ D₁ Hamburgers per month Price per hamburger 0 Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. F c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G Hamburgers per month Assume that people consume either hamburgers or hot dogs. What will be the result of a decrease in the price of hot dogs? Hint: Are hamburgers and hotdogs complements or substitutes? S₂ S₁
Page 4 of 10 c) The below graph illustrates an initial competitive equilibrium in the market for citrus fruit at the intersection of D and S. In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. What happens in the market for citrus fruit? Price P1 d) The below granh illustrates an initial enmnetitiva couilibrium in the market for almonds
Assume that the market for house cleaning is perfectly competitive. If a single firm cleans 22 apartments per week, and there are 99 identical firms in the market, how many markets are getting cleaned weekly? O a less than 2178 because demand slopes down. O b.4356 Oc 2614 O d. 2178 O e. it is impossible to say anything about the market output based on information about single firms.
8. Refer to the information in the table below to answer the following questions: TVC €0 10 15 Quantity of fruit baskets 0 1 2 3 4 5 6 TFC €50 50 50 50 50 50 50 21 31 46 68 TC MC -- 10 5 6 10 15 22 a) The firm sells fruit baskets in a perfectly competitive market. Calculate the firm's total cost for each level of production and complete the table. b) Assume that the market price of a fruit basket is €15. To maximize profit, how many fruit baskets should the firm sell? c) At the profit-maximizing quantity, what is the profit?
4 The Competitive Equilibrium Model—Deriving Supply] Negar owns a trendy and sustainable shoe factory. The total cost of producing a given number of pairs of shoes is displayed in the table below. Assume Negar can only produce the integer quantities of pairs of shoes specified in the table. Number of pairs Total Cost 0 400 10 410 20 430 30 460 40 500 50 580 60 680 70 800 b. Draw the supply curve for Negar’s shoe factory. c. Suppose the wholesale market for shoes that sell to retail stores is competitive, with a market price of $10 per pair (i.e., $100 per 10 pairs). If Negar’s goal is to maximize profits, how many pairs will she choose to sell? d. What are Negar’s profits when she sells the number of pairs from (c) at the market price of $10? e. Calculate Negar’s producer surplus given the price and quantity from part (c). How does this compare to the profit calculated in part (d)?
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)
am. 116.
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
Please see the attached23
Assume a perfectly competitive market. Draw the average total cost, average variable cost,marginal cost, and marginal revenue curves for a good. Determine the profit-maximizing levelof output given that the price of the good is above the minimum average variable cost butbelow the minimum average total cost. Is the profit at the chosen price point positive,zero, 0r negative? Shade the area representing profit. Assume a monopoly market. Draw the average total cost, marginal cost, marginal revenue,and demand curves for a good. At what price will the monopolist sell? What is theprofit-maximizing level of output at this price? Shade the area representing profit.

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