Homework Answers
A decreasing cost industries and industry if theaverage cost decreases with the increase in the output levels and in this regard if the demand for this industry decreases then the equilibrium output be less than what is expected as a result of which the average cost for producing that amount of output would be high and if it is a perfectly competitive market with constant price then the profit per unit decreases due to increase in the average cost on the profit levels decrease all in all
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Explain in words what will happen to the output and price of a decreasing-cost industry if...
Explain in words what will happen to the output and price of a decreasing-cost industry if...
Explain in words what will happen to the output and price of a decreasing-cost industry if there is a fall in market demand.
What will likely happen to firms in this industry in the long run? What will be...
What will likely happen to firms in this industry in the long run? What will be the long-run price of output sold in this market in the long run? Explain how you know what will happen to prices and firms in the long run. 2 2 9 . 8 MC ATC AVC 23 MR 0 14 17 19 Quantity (units)
study guide help 10) A decreasing-cost industry is characterized by which of the following? (2pts) a...
study guide help
10) A decreasing-cost industry is characterized by which of the following? (2pts) a downward-sloping long-run average cost curve a downward-sloping market demand curve. a downward-sloping long-run industry supply curve All of the above None of the above 11) A constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the price of the product? (2pts) It will increase in the short-run and then decrease in the long-run, but...
Please show graphically What will likely happen to firms in this industry in the long run?...
Please show graphically
What will likely happen to firms in this industry in the long run? What will be the long-run price of output sold in this market in the long run? Explain how you know what will happen to prices and firms in the long run. 2 2 9 . 8 MC ATC AVC 23 MR 0 14 17 19 Quantity (units)
Problem 1. (13 points) Markets: Perfect Competition. Assume that a perfectly competitive, constant cost industry is...
Problem 1. (13 points) Markets: Perfect Competition. Assume that a perfectly competitive, constant cost industry is in a long run equilibrium with 35 firms. Each firm is producing 90 units of output which it sells at the price of $39 per unit; out of this amount each firm is paying $5 tax per unit of the output. The government decides to decrease the tax, so the firms will be paying $3 tax per unit. a) Explain what would happen in...
Explain what will happen if the government establishes a price ceiling of $10 per bushel of...
Explain what will happen if the government establishes a price
ceiling of $10 per bushel of wheat in this market? What if the
price ceiling was set at $30?
Explain what will happen if the government establishes a price
floor of $30 per bushel of wheat in this market. What if the price
floor was set at $10?
1.12 The following graph represents the market for wheat. The equilibrium price is $20 per bushel and the equilibrium quantity is 14...
1. What will happen to the equilibrium quantity and price of a product in a competitive...
1. What will happen to the equilibrium quantity and price of a product in a competitive market when the increase in demand exactly offsets the decrease in supply? A)Equilibrium quantity will increase and equilibrium price will decrease B)Equilibrium quantity will decrease and equilibrium price will increase C)Equilibrium quantity will increase and equilibrium price will stay the same D)Equilibrium quantity will stay the same and equilibrium price will increase 2. Which statement is not correct? A)If demand increases and supply decreases,...
match the definitions with the words Question 1 options: A an industry in which average total...
match the definitions with the words Question 1 options: A an industry in which average total costs do not change as industry output increases B anything which artificially prevents the entry of firms into an industry C when a firm produces at an output level that is smaller than the output level at minimum average total cost D a single firm can supply the entire market at a lower cost than two or more smaller firms E a firm with...
The industry price elasticity of demand for good X is −1.5. The price elasticity of demand for the output of an individu...
The industry price elasticity of demand for good X is −1.5. The price elasticity of demand for the output of an individual firm producing good X in this industry −9. From this we can conclude that: individual firms have significant market power. the HHI for this industry is 1,667. this industry is highly concentrated. None of the options. individual firms have little market power.
what do you expect to happen in the long Suppose that the price of corn, a...
what do you expect to happen in the long
Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208 % last year as demand for corn based ethanol fuel increased. What do you expect to happen in the long run for the corn industry given this recent success? Suppose the firms in the market for bacon, also a perfectly (or purely) competitive industry, experienced losses last quarter the to people becoming increasingly...
What will likely happen to firms in this industry in the long run? What will be the long-run price of output sold in this market in the long run? Explain how you know what will happen to prices and firms in the long run. 2 2 9 . 8 MC ATC AVC 23 MR 0 14 17 19 Quantity (units)
study guide help
10) A decreasing-cost industry is characterized by which of the following? (2pts) a downward-sloping long-run average cost curve a downward-sloping market demand curve. a downward-sloping long-run industry supply curve All of the above None of the above 11) A constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the price of the product? (2pts) It will increase in the short-run and then decrease in the long-run, but...
Please show graphically
What will likely happen to firms in this industry in the long run? What will be the long-run price of output sold in this market in the long run? Explain how you know what will happen to prices and firms in the long run. 2 2 9 . 8 MC ATC AVC 23 MR 0 14 17 19 Quantity (units)
Explain what will happen if the government establishes a price
ceiling of $10 per bushel of wheat in this market? What if the
price ceiling was set at $30?
Explain what will happen if the government establishes a price
floor of $30 per bushel of wheat in this market. What if the price
floor was set at $10?
1.12 The following graph represents the market for wheat. The equilibrium price is $20 per bushel and the equilibrium quantity is 14...
what do you expect to happen in the long
Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208 % last year as demand for corn based ethanol fuel increased. What do you expect to happen in the long run for the corn industry given this recent success? Suppose the firms in the market for bacon, also a perfectly (or purely) competitive industry, experienced losses last quarter the to people becoming increasingly...
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