Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 8, Problem 8SQP
(a)
To determine
Economic profit or loss.
(b)
To determine
The
(c)
To determine
The demand curve which results in shutdown.
(d)
To determine
The short-run supply curve of the firm.
Expert Solution & Answer
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Students have asked these similar questions
Consider Exhibit 7-11, which shows the graph of a perfectly competitive firm in the short run.
a) If the firm's demand curve is MR3, does the firm earn an economic profit or loss?
b) Which demand curve(s) indicate(s) the firm incurs a loss?
c) which demand curve(s) indicate(s) the firm would shut down?
d) Identify the firm's short-run supply curve.
Question 5:
The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run
marginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost
function is given by AC' (Q) = 50 +3Q +22. The market demand curve is QD = 350 – 2P.
1. What is the long-run quantity produced by each firm?
2. What is the long-run equilibrium price in this industry?
3. How many active producers are in the avocado growing industry in the long-run competitive
market?
QUESTION 10
In an increasing cost industry, the long-run market supply curve is
because the long run
is increasing.
downward sloping; average variable cost (AC)
upward sloping; fixed cost (FC)
downward sloping; marginal cost (MC)
upward sloping; average cost (AC)
QUESTION 11
In the long run, each perfectly competitive firm has long run AC = 4+5Q+20/Q and MC=4+10Q. What is the long run equilibrium price P*?
$20
$24
$4
Chapter 8 Solutions
Economics For Today
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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