Long run.

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Answer 1

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Use the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?

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Answer 2

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Answer 3

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

Answer 6

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

Answer 7

Chapter 9, Problem 1MC

To determine

Long run.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.