MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 17QE
(a)
To determine
Calculate the profit maximizing quantity.
(b)
To determine
The long-run market price of a perfectly competitive firm.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The graph shows the cost curve of a firm in a competitive market. If the market price is $30, what should the firm do
A: exit the market completely
B: decrease production
c: temporarily shut down production
D; increase production
Choose the one alternative that best that answers the question. Assume the market for organic produce is perfectly competitive. All else being equal, as more farmers choose to produce and sell organic produce, in the long-run,
Select one:
a. The equilibrium price is likely to increase, and profits are likely to remain unchanged.
b. The equilibrium price is likely to remain unchanged, and profits are likely to increase.
c. The equilibrium price is likely to decrease, and profits are likely to decrease.
d. The equilibrium price is likely to increase, and profits are likely to increase.
e. Both the equilibrium price and quantity are likely to remain unchanged.
What are the two essential characteristics of a competitive market?
Chapter 13 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 13.1 - Prob. 1QCh. 13.1 - Prob. 2QCh. 13.1 - Prob. 3QCh. 13.1 - Prob. 4QCh. 13.1 - Prob. 5QCh. 13.1 - Prob. 6QCh. 13.1 - Prob. 7QCh. 13.1 - Prob. 8QCh. 13.1 - Prob. 9QCh. 13.1 - Prob. 10Q
Ch. 13 - Prob. 1QECh. 13 - Prob. 2QECh. 13 - Prob. 3QECh. 13 - Prob. 4QECh. 13 - Prob. 5QECh. 13 - Prob. 6QECh. 13 - Prob. 7QECh. 13 - Prob. 8QECh. 13 - Prob. 9QECh. 13 - Prob. 10QECh. 13 - Prob. 11QECh. 13 - Prob. 12QECh. 13 - Prob. 13QECh. 13 - Prob. 14QECh. 13 - Prob. 15QECh. 13 - Prob. 16QECh. 13 - Prob. 17QECh. 13 - Prob. 18QECh. 13 - Prob. 19QECh. 13 - Prob. 20QECh. 13 - Prob. 1QAPCh. 13 - Prob. 2QAPCh. 13 - Prob. 3QAPCh. 13 - Prob. 4QAPCh. 13 - Prob. 5QAPCh. 13 - Prob. 1IPCh. 13 - Prob. 2IPCh. 13 - Prob. 3IPCh. 13 - Prob. 4IPCh. 13 - Prob. 5IP
Knowledge Booster
Similar questions
- Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. On the back of the page, graph the supply and demand curves.arrow_forwardIs a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run?arrow_forwardI need the answer as soon as possiblearrow_forward
- In a market characterized by perfect competition, what happens to price and quantity when new firms enter the market? A. Price increases, quantity increases B. Price decreases, quantity decreases C. Price remains the same, quantity increases D. Price decreases, quantity increasesarrow_forwardexplain your answers in detail and use graphs whenever appropriate: The market for rental cars is very competitive. How would the following developments affect the quantity of car rentals that a typical rental car company wants to supply in the short run? a. With the easing of fears about Covid 19, people are more excited to travel than before. b. Local governments reduce the yearly fee that rental car companies have to pay for their facilities. Note, these fees do not vary with how many cars the company rents. c. Rental car companies have to pay higher wages for their workers. Suppose that initially the market for rental cars is in long-run equilibrium. a. What does the fall in the yearly fee rental car companies have to pay for their facilities do to the profits of a typical rental car company in the short run? b. What will happen to the equilibrium price and quantity of rental cars in the long run? Why? What will happen to the profits of a typical rental car company in the long run?arrow_forwardWhat is special about a purely competitive market?arrow_forward
- Economics 1. Rob Doe just started a ice cream business within a perfectly competitive market. The new business man was told that he would charge a price that is equal to marginal revenue. The market clearing price for ice cream is $20 dollars per scoop. The total cost for producing ice cream is given by: Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day. a. How many ice cream should Rob choose to produce to maximize profit? b. Calculate Rob's maximum daily profit c. Graph these results, and label Rob's supply curvearrow_forwardIn economics terms ,what does it mean for a firm to be the right size for a market?arrow_forwardThere is equilibrium in the purely competitive market for oranges, and the optimal amount of oranges is being produced. Explain if and how the optimal amount of oranges will change if the following events occur: a) New fertilizers increase the yields of orange trees. b) Frost destroys part of the orange crop. c) Frost destroys part of the grapefruit crop. The resulting increase in the price of grapefruits raises the demand for oranges. d) People get tired of oranges.arrow_forward
- The increase in demand for soap operas also increases the salaries of actors and actresses. If the soap opera industry is in a perfectly competitive market, what is the supply curve? long term for horizontal or upward-sloping soap operas? Explain.arrow_forward7. Short-run and long-run effects of a shift in demand 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 25 million pounds per year. Suppose a leading foodle 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 jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video, 10arrow_forwardSuppose that the market for air fresheners 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. 40 36 Profit or Loss 32 28 ATC AVC MC 4 2 4 6 10 12 14 16 18 20 QUANTITY (Thousands of air fresheners per day) In the short run, at a market price of $20 per air freshener, this firm will choose to produce v air fresheners per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's v would be $ thousand per day in the short run. PRICE (Dollars per air freshener)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage LearningEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning