The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant scale. Consider a change in demand from D₁ to D2, which increases price from $20 to $30 in the short run. Market Price $50 $40 $30 $20 $10 10 20 30 D₁ 40 Quantity S₁ D₂ 50 60 70 Tools LRS O S₂ Instructions: Enter your answers as a whole number. a. Draw the new short-run market supply curve that will occur in response to the increase in demand and increase in price. Instructions: Use the tool provided 'S2' and be sure your supply curve includes the new equilibrium price and quantity. b. Draw the long-run supply curve. Instructions: Use the tool provided 'LRS' and plot only the endpoints over the entire range of output (0-60). The new equilibrium price is $ 20 and the new equilibrium quantity is 40

The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. COSTS (Dollars) 100 100 80 90 80 20 70 70 HD 50 40 30 20 0 11 D 10 O MC Price (Dollars per snapback) 15 15 20 25 55 70 85 201 ATC 0 D AVC O 50 60 70 80 QUANTITY (Thousands of snapbacks) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. □ Quantity (Snapbacks) BO 100 ▼ On the following graph, use the orange points (square symbol) to…

The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $8 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 20 115 5 25 137 4.50 30 162 35 192 40 232 8 45 282 10 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. b. Given a price of $8 per gift box, how many boxes of chocolate should Choco Lovers produce? gift boxes What will the profit or loss be per gift box? $ per gift box c. Suppose that Choco Lovers raises the price to $10 per gift box. Now how many boxes should Choco Lovers produce? gift boxes…

Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 ------ 10 ..---- .---- 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm produces its profit-maximizing or loss-minimizing output, then it will make a equal to Loss; $420 Profit ; $240 Loss ; $180 Loss; $240

Price and cost MC ATC AVC 20 MR 15 14 11 750 1,100 1,350 1,800 Quantity Refer to Figure 12-11. Suppose the prevailing price is $20 and the firm is currently producing 1,350 units. In the long-run equilibrium, the firm represented in the diagram will continue to produce the same quantity. O will cease to exist. O will reduce its output to 1,100 units. O will reduce its output to 750 units.

Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services.  The following table sets out Lisa’s costs.    Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?

The table below shows the total costs faced by Gregory's Jewelry firm for different quantities of necklaces sold. Quantity 0 1 2 3 4 5 6 7 8 9 10 Total Cost $64 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 Gregory's Jewelry firm sells necklaces in a perfectly competitive market with a downward sloping demand curve and an upward sloping supply curve. The market price is $32/unit. A. Calculate the average fixed cost of producing 8 units. Show your work. B. Identify the profit maximizing quantity. Explain using marginal analysis. C. Calculate the economic profit at the profit maximizing quantity you identified in Part B. Show your work. D. Based on your answer to Part C, will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain. E. Based on your answer to Part C, will the market price increase, decrease, or stay the same in the long run? Explain. F. The income elasticity of demand for necklaces is -3 and the cross price elasticity of demand…

« Consider Figure 21.1 for a perfectly competitive firm Figure 21.1 Price or Cost (dollars/bushel) 4.90 3.90. 3.10 1.90 1.10 0 += h la b 13 18 24 K MC deg D 37 46 50 54 ATC AVC Quantity (thousands of bushels/year) OA. This firm's short run supply curve is its MC curve from points "e" to "T" and beyond. OB. An individual firm, like this one, does not have a short run supply curve. OC. This firm's short run supply curve is its MC curve from points "o" to "f" and beyond. OD. This firm's short run supply curve is its MC curve from points to "T" and beyond.