Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 8, Problem 12E
(a)
To determine
Identify the industry in long-run equilibrium.
(b)
To determine
Identify the amount that used to purchase the new technology.
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A number of stores offer film developing as a service to their customers. Suppose that each store offering this service
has a cost function (C)
and a marginal cost (MC) of
C(q) = 25+0.40q+0.0625q²
MC(q) = 0.40+0.125q.
If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No
Find the price associated with long-run equilibrium.
The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)
Consider the following cost curve for a firm in a competitive industry where the market price equals $150.
C= =q° + 6q + 1,500.
What is the firm's marginal cost (MC)?
MC = 150. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.)
At what level of output does the firm maximize profits (minimize losses)?
Profit is maximized at 12 units of output. (Round your answer to two decimal places.)
What is the firm's profit maximizing price?
The profit-maximizing price is $ (Round your response to the nearest dollar.)
What is the firm's profit?
The firm earns a profit of $. (Round your response to the nearest penny.)
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Short-run supply and long-run equilibrium
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm 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.
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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.
Chapter 8 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Suppose you are the manager of a watchmaking firm...Ch. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - A sales tax of 1 per unit of output is placed on a...Ch. 8 - Prob. 15E
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