Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 8IAPA
To determine
To explain:
The graph of the U.S. strawberry market in long run equilibrium before the pollution crackdown and the short run effects of pollution crackdown.
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The pen industry is an increasing cost industry. If a pen is an inferior good, and consumer's incomes permanently increase, the equilibrium price of a pen ____ in the long run, the equilibrium quantity of pens ______in the long run, and the number of firms in the market ____ in the long run.
Word Bank:
Decreases, Decreases, Decreases, Increases, Increases, Increases, does not change, does not change, does not change.
You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question.
What does each burger cost on average if you make 8 burgers?
Suppose the market of surgical mask in Country D is competitive.
а.
Assume the market of surgical mask in Country D operates at her long run
equilibrium. Draw side-by-side diagrams to show the long run equilibrium
conditions for a typical firm producing surgical masks and the market for surgical
masks. Label your diagrams clearly.
b.
Suppose a trade war happens and many other countries refuse to buy surgical masks
from Country D.
Making use of your diagram in (a), explain its short run effects on the equilibrium
price and quantity in the market of surgical masks in Country D, and the output and
the profit/loss of a typical firm producing surgical masks in Country D.
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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- Confused and don’t know how to solve these set of problemsarrow_forwardYou decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is AVC if you produce 6 burgers?arrow_forwardYou decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is BurgerDeals TFC?arrow_forward
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- 2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 + 0.01q. Demand for mink oil is as follows: Q = p2 What will be the long-run equilibrium price and quantity in the market? How many fims are in the industıy?arrow_forwardEconomicsarrow_forward1. The soybean industry is a constant cost industry. A new study revealing negative health effects of soymilk permanently decreases the number of buyers in the soybean market. Due to the decrease in demand, the equilibrium price of soybeans ......... in the long run, the equilibrium quantity ........of soybeans in the long run, and the number of firms in the market will ........ in the long run. decrease, increase, or does not change. 2.The pen industry is an increasing cost industry. If a pen is an inferior good, and consumer's incomes permanently increase, the equilibrium price of a pen....... in the long run, the equilibrium quantity of pens ........... in the long run, and the number of firms in the market......... in the long run. increase, does note change, decrease. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- 300 270 240 210 180 150 120 90 60 30 0 20 MC 32 40 50 60 70 80 The figure shows MC, MR and ATC curves for Joe's Good Enough Cafeteria, a firm that operates in a competitive market. If the firm is producing 50 units of output, increasing output by one unit would the firm's profit by $ Joe's SHORT RUN equilibrium quantity is equal to ATC Joe's LONG RUN equilibrium quantity will be MR If the firm is producing 70 units of output, increasing output by one unit would the firm's profit by $ and profit is $ and profit will be $arrow_forwardSuppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 1/2q² Marginal Cost: MC = q where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand D = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50+ 1/1/19 19² 1 29arrow_forwardShow what happens in the short run on both graphs when a new medical study shows soybeans to be highly carcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2 to draw a new price line for the firm. On both graphs, indicate the new equilibrium point with point B.arrow_forward
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