Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13.1, Problem 1QQ
To determine
The price of output and total revenue if the firm increases selling.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
When a competitive firm doubles the amount it sells, what happen to the price of its output and its total revenue
“An upward – sloping demand curve doesn’t make sense in my business. All I know is that if I raise my prices, revenue doesn’t go up, it goes down. I don’t sell more products, I sell less. “Can you straighten out this business man’s thinking?
If firms in a competitive industry incur an economic profit, what happens to supply, price, output, and economic profit in the long run? Explain
Chapter 13 Solutions
Essentials of Economics (MindTap Course List)
Ch. 13.1 - Prob. 1QQCh. 13.2 - How does a competitive firm determine its...Ch. 13.3 - Prob. 3QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQCh. 13 - Prob. 1QR
Ch. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - A firm in a competitive market receives 500 in...Ch. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PACh. 13 - Suppose that each firm in a competitive industry...
Knowledge Booster
Similar questions
- A. If a firm operating in a perfectly competitive market doubles the amount it sells, what happens to the price of its output and its total revenue? B. How does a competitive firm determine its profit-maximizing level of output? When does a competitive firm decide to temporarily shut down in the short run? Explain, using the concepts of marginal cost, marginal revenue, price, and average variable cost.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_forwardAssume that the market for pasta is in long-run equilibrium and that the pasta industry is a constant-cost industry. Explain with a graph and words what will happen to the price and quantity in the market when the demand for pasta decreases.arrow_forward
- How does a competitive firm determine the quantity that maximizes profit?arrow_forwardHow does a market compete with other firms efficiently to maintain profit in a competitive market over time? Show diagram with shifts in price, cost, quantity, etc.arrow_forwardWill a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.arrow_forward
- Sleek Sneakers Co. is one of many firms in the market for shoes. Show the effect that positive profits has on the demand curve faced by Sleek in the long run. Price Quantity Demand 中 Demand ?arrow_forwardFor each of the following, is the business a price-taking producer? Explain your answers. a. A cappuccino café in a university town where there are dozens of very similar cappuccino cafés. b. The makers of Pepsi-Cola. Just answer a.arrow_forwardSuppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) C Price and cost (dollars per box) 10- 9- 00 N 1 0 10 MC 20 30 40 50 60 70 80 Quantity of beans (boxes per week) ATC 90 100 Narrow_forward
- Suppose that in the short run perfectly competitive firms earn $1,250 in economic profit. Would we expect to see more, less, or the same number of firms operating in the market in the long run?arrow_forwardConsider the perfectly competitive market for pineapples, which is in long-run equilibrium. Now income increases (we may assume that pineapples are a normal good). As a result, we would expect that The short-run profits stay the same The long-run profit for each firm increases. The short-run quantity for each firm increases The long-run quantity produced by each firm increasesarrow_forwardIn the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in question 3. a. What happens to the number of firms producing running shoes in the long run? Answer: b. What happens to the price of running shoes in the long run? Answer: c. What happens to the quantity of running shoes produced by Smart in the long run? Answer: d. What happens to the quantity of running shoes in the entire market in the long run? Answer: e. Does Smart shoes have excess capacity in the long run? Answer: f. Why, if Smart firm shoes has excess capacity in the long run, doesn’t the firm decrease its capacity? Answer: g. What is the relationship between Smart Shoes’ price and marginal cost? Answer:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning