Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You candisregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use thepurple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 40 firms.Note: Points will snap to the quantities of output.100888PRICE (Dollars per tonne)507080-O-Supply (20 firms)Supply (30 firms)A40DemandSupply (40 firms)30201000123250 373 500 623 750 873 1000 1123 1250QUANTITY (Thousands of tonnes)?If there were 20 firms in this market, the short-run equilibrium price of steel would be $wouldTherefore, in the long run, firms wouldBecause you know that perfectly competitive firms earnper tonne. At that price, firms in this industrythe steel market.must be $run equilibrium.per tonne. From the graph, you can see that this means there will beeconomic profit in the long run, you know the long-run equilibrium pricefirms operati

In the long run, competitive firms earn zero economic profit, resulting in a stable equilibrium…

Answered: Use the orange points (square symbol)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
What quantity will the firm produce if it shuts down in the short run? What will be the profits if this firm shuts down? What quantity will the firm produce to minimize losses in the short run? If this firm chooses to operate at a loss, what will its profits equal? If the cost and revenue numbers in the table will continue permanently, what will this firm choose to do?
1.500 $72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 1,800 2,100 2,400 2,700 3.000 3.300 3.600 3,900 Market Supply and Demand Functions $72 $68 $64 $60 $56 $52 $48 $44 $40 Cost Functions for a Typical Firm in the Industry XY $36 $32 $28 $24 $20 $16 $12 4,200 4,500 $4 $0 0 2 4 6 8 10 12 14 16 18 20
Please correct answer and don't use hend raiting
The first graph depicts the industry supply and demand for yoga classes. Assume that the market is initially in equilibrium at the intersection of lines D and S. The second graph is the cost information for a single firm in this perfectly competitive industry. Assume there is an increase in the industry demand for yoga classes and the industry demand curve moves from D to D1. Furthermore, assume this is a constant cost industry. Shift the supply (S) curve to the correct positions to reflect long-run equilibrium in this constant cost industry. Next, use the interactive line to trace out the long-run industry supply curve (LRIS) for this industry. Price per class Yoga Industry Supply and Demand Short-run marginal cost Long-run average cost Short-run average cost S Price=Marginal revenue DRIS D1 Quantity of classes Quantity of classes Price ($)
By how much would the market price of abortions and the number of abortions change if a lump-sum tax is assessed on abortion clinics that raises their minimum average cost by 10%? On the graph to the right, show the new long-run equilibrium price. 1.) Use the line drawing tool to draw the new demand curve and label the line d². 2.) Use the 3-point curved line drawing tool to draw the new average cost curve and label the curve AC². Carefully follow the instructions above, and only draw the required objects. Using the price elasticity of demand information from the "Abortion Market" application, calculate the decrease in the number of abortions from the lump sum tax. Abortions will decrease by as little as percent or by as much as percent. (round your answers to one decimal place) C Price/cost per abortion 490- 470- 450- 430- 410- 390- 370- 350- 330- 310- 290- 270- 250+ 100 AC2 d2 1 AC¹ P = MR 150 200 250 300 350 400 450 500 Abortions per year Q N
9 Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, ever n 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. Esc 78°F Sunny 100 COSTS (Dollars per pound) 90 80 70 60 4 50 + 40 + 30 20 10 0 MC O 05 F2 ATC AVC F3 0 10 15 20 25 30 35 40 QUANTITY (Thousands of pounds) 0+ ☐ F4 45 50 F5 H M OL F6 M (?) F7 10 F8 At ( F9 F10 F11 F12 2 Fn
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
the orange square points on the marginal cost curve from low to high(16,12) (24,20),(30,36),(32,44),(34,52),(38,72)
Lesson 5.4 - Industry Adjustments to Increases in Demand 1. In a/an industry, an increase in demand will result in a new equilibrium price equal to the original equilibrium price (before demand increased). This results in a long-run supply curve that is 2. In a/an industry, an increase in demand will result in a new equilibrium price higher than the original equilibrium price (before demand increased). This results in a long-run supply curve that is sloping. 3. In a/an. industry, an increase in demand will result in a new equilibrium price lower than the original equilibrium price (before demand increased). This results in a long-run supply curve that is sloping.
Q4) Answer the following, providing a graphical illustration along with your answer where necessary: a) What is the profit maximising condition? b) Explain what is meant by abnormal profit? What is the adjustment process from short-run abnormal profit to long-run equilibrium in a perfectly competitive market? c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A's payoff/Firm B's payoff) Firm A Price £2 Price £1 Assume you are the pricing manager at Firm A; i) ii) Price £2 £10,000/£10,000 £12,000/£5,000 Firm B Price £1 £5,000/£12,000 £6,000/£6,000 What is your payoff for a 'maximin' strategy? What is your payoff for a 'maximax' strategy? Does a dominant strategy exist within this prisoners' dilemma?
Give an explanation to the answer and ensure all the steps are shown.

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