What is the difference between demand and supply curve in short-run competitive firm? Illustrate with figure the demand curve in short-run competitive firm and explain the characteristic of demand curve in this market.

What is the difference between demand and supply curve in short-run competitive firm? Illustrate with figure the demand curve in short-run competitive firm and explain the characteristic of demand curve in this 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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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 B D₂ D₁ Hamburgers per month A Price per hamburger 0 F Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G S₂ S₁ 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?
Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell an unlimited amount at the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 1 10 3 15 4. 14 12 24 25 45 dema Recalculate, given the small increase in fixed cost and the change in the going market price. What quantity should the firm produce? OUTPUT PRICE FC VC TC TR AR AC MR MC Profit 10 7 15 30 14 24 25 45 234 567
Explain the concept of a perfectly competitive market and its characteristics.
Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
1. Assume you have a perfectly competitive market with two types of firms. The only difference between the two types of firms is that the minimum average cost at which firms of type A can produce is lower than the minimum average cost at which firms of type B can produce. a. Give a graphical example of what the individual long run supply functions of a type A firm and a type B firm may look like. Explain the shape in detail. b. Based on your example, what will the aggregate supply curve of a market with 2 firms, one type A and one type B, look like? Explain the shape in detail. C. Assume now that all potential firms are identical. Evaluate the impact of a demand shock on the long run equilibrium market price and firm numbers. You must use graphical analysis and explain in detail.
Not use excel
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
Only typed answer and don't use chatgpt
choose 1 if, for the last unit of a good produced by a perfectly competitive firm, MR>MC, then in producing it the firm: 1- added more to total revenue than it added to total costs 2-is maximizing marginal profit 3-has minimized its losses 4-added more to total costs than it added to total revenue
I DO NOT NEED THE CHART I ONLY NEED THE QUESTIONS Quantity of Output Total Cost Marginal Cost Average Total Cost 0 $100 1 $120 2 $135 3 $145 4 $160 5 $180 6 $205 7 $240 8 $285 9 $350 10 $440 Approximately where do you think the price will end up in this market over the long run? Explain your answer. Last, instead of assuming a given price, how would you go about finding the equilibrium price if you were given information on market demand? Assume that this market is made up of 10 identical sellers with costs as above, and that market demand can be given as below. It may be useful to construct a column for market supply knowing the cost information per seller and that there are ten identical sellers in the market.
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2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Flagstaff, AZ, during Northern Arizona's fall move-in week. PRICE (Dollars per small trick) 100 90 70 8 8 8 8 8 8 8 0 0 Demand 1 2 0 1 2 3 QUANTITY (Hundreds of small trucks) Supply Suppose that Zoom be is one of over a dozen competitive firms in the Flagstaff area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is 9 Fill in the price and the total, marginal, and average revenue Zoomba earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price (Trucks) (Dollars per truck) Total Revenue Marginal Revenue (Dollars) (Dollars) Average Revenue (Dollars per truck) 10 O Marginal revenue curve O Supply curve O Marginal cost curve Ⓒ Average revenue curve 0 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. $10