The following graph shows the market demand for wheat.Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at thelowest point of the supply curve and another orange point at the highest point of the supply curve. (Note: You can disregard the portion of the supplycurve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would likethem connected. Line segments will connect the points automatically.) Then, place the black point (plus symbol) on the graph to indicate the short-runequilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.)100Demand90Supply Curve807060Equilibrium50403020106501300 1950 2600 3250 3900 4550 5200 5850 6500QUANTITY OF OUTPUT (Thousands of bushels)At the current short-run market price, firms willin the short run. In the long run,the marketgiven the current market price.PRICE (C ents per bushel) Consider a perfectly competitive market for wheat in New York City. There are 130 firms in the industry, each of which has the cost curves shown onthe following graph:10090MC807060ATC504030AVC20105 10 15 20 25 3035404550QUANTITY OF OUTPUT (Thousands of bushels)COST(Cents per bushel)

Demand curve: It can be defined as the graphical presentation of the law of demand which depicts an…

Answered: The following graph shows the market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If there were 10 firms in this market, the short-run equilibrium price of steel would be $______per ton. At that price, firms in this industry would ______(shut down/operate at a loss/ earn a positive profit/ earn zero profit). Therefore, in the long run, firms would__________(enter/ exit/ neither enter nor exit) the steel market. Because you know that competitive firms earn______(zero/ negative/ positive) economic profit in the long run, you know the long-run equilibrium price must be $_____per ton. From the graph, you can see that this means there will be_____(10/20/30) firms operating in the steel industry in long-run equilibrium.
The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run. On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes through two of the points A, B, C, or D. PRICE (Dollars per bag 10 9 8 2 1 D 0 1 True B D₁ O False 23 C S 10²4 NO 2 3 4 5 7 8 QUANTITY (Milions of bags per year) According to the graph, the tortilla chip market is an example of 10 Long-Run Supply True or False: The average cost at the cost-minimizing level of output is lower for the new marginal firm than it was for the marginal firm before the change in demand. industry.
Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC) and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Observe the Short - Run Loss information illustrated in the graph to the right. With respect to Price (P*"), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P What would happen if this were to continue in the long run? Is there a Shut Down point? ** ? Notice that MR = P
On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.)
Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 75 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links jackfruit consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. PRICE (Dollars per pound) 10 9 8 7 co 01 2 1 0 0 15 Supply Demand jackfruit at every price. In the short run, firms will respond by 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) Demand Supply ?
The following graph shows the long-run supply curve for persimmons. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for persimmons. (Note: Place the points of the line either on W and R or on W and M.) PRICE (Dollars per pound) 24 20 16 6 2 co 4 0 0 W 4 M R Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of persimmons) 12 Short-Run Supply ?
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in New York City. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: COST (Cents per bushel) 100 90 80 70 60 50 40 30 20 10 0 ATC 0 5 AVC 10 15 20 25 30 35 40 QUANTITY OF OUTPUT (Thousands of bushels) MC The following graph shows the market demand for wheat. 45 50 ?
The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. 200 180 160 140 120 100 80 60 40 PRICE (Dollars per unit) + Demand 20 0 01 2 3 4 5 6 7 8 9 10 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units). Demand Price (Dollars per unit). 5 100.00 ?
After serving as President of the United States for eight years, Dena has retired from politics and has decided to become a wheat farmer. The market for wheat is perfectly competitive and the current market price for wheat is $10 per bushel. Dena is currently producing 8 bushels (Dena can only produce this good in whole units). Her total cost at 8 units of output is $88 and her variable cost at 8 units of output is $64. Dena knows that if she produces a 9th unit her total cost will become $97, and if she produces a 10th unit her total cost will become $110. Dena’s goal is to maximize her profits. Based on this information, identify whether each of the following would be true or false and briefly explain your reasoning. Dena is currently losing money in the short-run and she would be better off if she shutdown and produced zero. Dena is not currently profit maximizing at 8 units of output and she could increase her profits if she expanded output by one unit. Dena would increase her…
7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per ton) 100 90 80 70 60 50 40 ATC 30 20 10 + MC AVC 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of tons) The following diagram shows the market demand for steel. ⑦? Use the orange points (square symbol) to plot the short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry…
7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per kilogram) 80 72 64 56 48 40 32 16 8 0 0 4 MC 8 ATC AVC □ 12 16 20 24 28 32 QUANTITY (Thousands of kilograms) 36 The following diagram shows the market demand for copper. □ 40 ? 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…
Show what happens in the short run on both graphs when a new medical study shows soybeans to be highly carcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2 to draw a new price line for the firm. On both graphs, indicate the new equilibrium point with point B. Now, show the changes that get both graphs back to long‑run equilibrium. Use shift(s) for the market and Price 3 for the firm. Indicate the new long‑run equilibrium with point C.

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