Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make...
Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity.
a. Start with a graph depicting market equilibrium for the monopolistic market
b. Modify the graph to demonstrate that the price at the profit maximizing level of output is above the average variable cost curve,but below the average cost curve
c. Is the firm making a profit or loss?
d. Will the firm decide to continue to produce in the short-run (will it shutdown)?
e. Will the firm decide to continue to produce in the long-run (will it leave the market)?
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Draw and label a graph depicting a monopolistic market from
perspective of a single firm. Make...
Draw and label a graph depicting a monopolistic market from the perspective of a single firm....
Draw and label a graph depicting a monopolistic market from the perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity . Start with a graph depicting market equilibrium for the monopolistic market . Modify the graph to demonstrate that the price at the profit maximizing level of output is below the average variable cost curve . Discuss the following characteristics of a the firm depicted in part 1 : Is the firm making a...
Draw and label a graph depicting a government tax on suppliers of a good. Start with...
Draw and label a graph depicting a government tax on suppliers of a good. Start with a graph depicting general market equilibrium with the demand curve having a slope of 1 (technically negative 1) and the supply curve having a slope of 2. Modify the graph to demonstrate the effect of a tax on the supplier on the market.
Draw and label a graph depicting world trade in which the world price is perfectly elastic...
Draw and label a graph depicting world trade in which the world price is perfectly elastic and higher than the country price. Start with a graph depicting market equilibrium with the demand curve and supply curves having slopes of approximately 1 (negative 1 for demand). Modify the graph to demonstrate the world market price being lower than the country market price.
in short run this firm will___ in long run this firm will___ a. Label the graph...
in short run this firm will___
in long run this firm will___
a. Label the graph that represents the market "Market" and the graph that depicts a perfectly competitive representative firm for this industry "Firm". Label the axes and all of the curves. (4 points) b. Label market equilibrium. Draw in the firm's price line. Indicate the profit maximizing level of output for the firm and illustrate the area of profits/losses. (4 points)
Suppose that the market is perfectly competitive with a price of $16. The graph below shows...
Suppose that the market is perfectly competitive with a price of $16. The graph below shows the cost curves of a typical manufacturer in the market. a. Why is the firm's marginal revenue curve horizontal? MC Price (dollars per unit) AVC b. What is the profit maximizing level of output for the firm? 0 14 17 19 Quantity (units) c. Given your answer to part (a), is the firm making a profit or a loss? What is the value of...
Consider a firm facing conventional technology with U-shaped AVC and ATC and MC. The firm wants...
Consider a firm facing conventional technology with U-shaped AVC and ATC and MC. The firm wants to maximize profits given an exogenously fixed price of P = $20. Further, suppose the firm correctly determines that its short run profit maximizing output is 1000 given its costs and the exogenously fixed price of $20. Question 1A Using the axes as constructed below, depict marginal revenue and marginal cost curves that would support the conclusion that the optimal short run output is...
PLEASE READ VERY CAREFULLY!! ANSWERS MUST BE CORRECT AND CLEAR TO READ. AND FOR THE GRAPH...
PLEASE READ VERY CAREFULLY!! ANSWERS MUST BE CORRECT AND CLEAR
TO READ. AND FOR THE GRAPH PLEASE LIST OUT ALL THE COORDINATE
POINTS!! THANKS!
PRODUCE OR SHUTDOWN OPTIONS"
EITHER SHUT DOWN OR PRODUCE
PRODUCE
SHUTDOWN
IN THE LONG RUN: FIRMS WILL NEITHER ENTER NOR
EXIT
SOME FIRMS WILL ENTER
SOME SOME FIRMS WILL EXIT
5. Deriving the short-run supply curve Consider the price-taker market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and...
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total...
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...
T=_$410 5) On the graph below, show the situation in which a firm in a perfectly...
T=_$410 5) On the graph below, show the situation in which a firm in a perfectly competitive market is making an economic profit in the short-run. Label the axes and all curves. Label the short-run profit maximizing quantity with q* and the market price with P. Shade the area on the graph corresponding to the economic profit.
Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.
5. Profit maximization and shutting down in the short run Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent...
in short run this firm will___
in long run this firm will___
a. Label the graph that represents the market "Market" and the graph that depicts a perfectly competitive representative firm for this industry "Firm". Label the axes and all of the curves. (4 points) b. Label market equilibrium. Draw in the firm's price line. Indicate the profit maximizing level of output for the firm and illustrate the area of profits/losses. (4 points)
Suppose that the market is perfectly competitive with a price of $16. The graph below shows the cost curves of a typical manufacturer in the market. a. Why is the firm's marginal revenue curve horizontal? MC Price (dollars per unit) AVC b. What is the profit maximizing level of output for the firm? 0 14 17 19 Quantity (units) c. Given your answer to part (a), is the firm making a profit or a loss? What is the value of...
PLEASE READ VERY CAREFULLY!! ANSWERS MUST BE CORRECT AND CLEAR
TO READ. AND FOR THE GRAPH PLEASE LIST OUT ALL THE COORDINATE
POINTS!! THANKS!
PRODUCE OR SHUTDOWN OPTIONS"
EITHER SHUT DOWN OR PRODUCE
PRODUCE
SHUTDOWN
IN THE LONG RUN: FIRMS WILL NEITHER ENTER NOR
EXIT
SOME FIRMS WILL ENTER
SOME SOME FIRMS WILL EXIT
5. Deriving the short-run supply curve Consider the price-taker market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and...
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...
T=_$410 5) On the graph below, show the situation in which a firm in a perfectly competitive market is making an economic profit in the short-run. Label the axes and all curves. Label the short-run profit maximizing quantity with q* and the market price with P. Shade the area on the graph corresponding to the economic profit.
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