ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 8, Problem 3P
To determine
The shape and reason behind the
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(Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $38, what profit (or loss) will this firm earn?
a profit of $200
a loss of $30 T
a loss of $200
a profit of $80 This is what I think the answeris
(J) Canadian red wheat is a normal good, in a perfectly competitive market which is in long run equilibrium. There occurs a boon in the economy and income rises. What effect does this have on short run equilibrium price and equilibrium quantity? Draw a short run industry graph showing the change described above. Remember to label every curve, label your axes, and demonstrate the resulting changes in the axes.
(Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $38, what profit (or loss) will this firm earn?Possible solutions
a profit of $80
a loss of $30
a profit of $200
Chapter 8 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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- Please see the attached20arrow_forwardCo Assignment Content 1) When the Price is $4 the quantity supplied of hats is 100. If the price changes to $6 dollars and the quantity supplied changes to 400, is the elasticity of supply elastic, inelastic or unit elastic? How did you reach that conclusion? 2) Why will economic profits for firms in a perfectly competitive industry tend to vanish in the long run? What about accounting AS 12arrow_forward(What’s So Perfect About Perfect Competition) Use thefollowing data to answer the questions.Marginal MarginalQuantity Cost Benefit0 — —1 $ 2 $102 $ 3 $ 93 $ 4 $ 84 $ 5 $ 75 $ 6 $ 66 $ 8 $ 57 $10 $ 48 $12 $ 3a. For the product shown, assume that the minimum pointof each firm’s average variable cost curve is at $2. Construct a demand and supply diagram for the product andindicate the equilibrium price and quantity.b. on the graph, label the area of consumer surplus as f.Label the area of producer surplus as g.c. If the equilibrium price were $2, what would be theamount of producer surplus?arrow_forward
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