long-run equilibrium diagram
Using diagrams for both the industry and a representative firm, illustrate competitive long-run equilibrium. Assume constant costs. Given the change indemand in the diagram on the left, show how this affects the representative firm. (draw line)
Homework Answers
When the demand curve shifts, equilibrium point shifts from A to B. When there is an increase in demand, then the equilibrium prices rise. As a result, in a competitive market, the Marginal revenue curve shifts up to MR'
With the constant cost, we find new equilibrium at point where
MR' = MC. The quantity increases from X to X' and there is
profit.
3. Suppose the market for rolled oats is perfectly competitive and is in a long-run equilibrium....
3. Suppose the market for rolled oats is perfectly competitive and is in a long-run equilibrium. For the following. be sure to carefully label your graphs and use subscripts as we have done in class! You can give your answers for each part on the same graphs. a. Draw the graphs below that illustrate the market and a representative firm in the initial long-run equilibrium (use the subscript 1 to denote each curve). What profits is the representative firm earning?...
Cost curves, profits/losses, and long-run equilibrium: a. Draw typical short run average cost and marginal cost...
Cost curves, profits/losses, and long-run equilibrium: a. Draw typical short run average cost and marginal cost curves for a firm (costs on the vertical axis, q on the horizontal axis), such that marginal cost = average cost= 6 at q=10. b. Suppose this firm operates as a perfect competitor in a market with a short run equilibrium price of $5. Illustrate on your graph the area indicating the short run profit or loss experienced by this firm, given the cost...
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)
2nd picture is Average Cost curve oncept: Long-Run Equilibrium 3 Ques representative firm in a perfectly...
2nd picture is Average Cost curve
oncept: Long-Run Equilibrium 3 Ques representative firm in a perfectly competitive market. Assume all firms in the industry have the same cost structure. (Click the icon to view the average cost curve) Suppose the figure to the right illustrates the market, with a market supply curve 64 (S) and a market demand curve (D) How will this industry adjust to its long-run equilibrium? 1.) Using the line drawing tool, draw the market supply curve...
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic...
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry?
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic...
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points. b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry?
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic...
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points (10 points). b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry? (10 points)
Quick question I need answered as soon as possible 3. Cost curves, profits/losses, and long-run equilibrium:...
Quick question I need answered as soon as possible
3. Cost curves, profits/losses, and long-run equilibrium: a. Draw typical short run average cost and marginal cost curves for a firm (costs on the vertical axis, q on the horizontal axis), such that marginal cost = average cost=6 at q=10. (5) b. Suppose this firm operates as a perfect competitor in a market with a short run equilibrium price of $5. Illustrate on your graph the area indicating the short run...
Suppose the apple market is competitive. State the long run equilibrium condition of a typical profit-maximizing...
Suppose the apple market is competitive. State the long run equilibrium condition of a typical profit-maximizing firm operating in a competitive market. Express your answer using marginal cost and average cost. Assume the market for apple is now operating at her long run equilibrium. Draw side-by-side diagrams to show the long run equilibrium conditions for a typical apple farmer and the market for apples. Label your diagrams clearly. Recently, there is a fall in the price of fertilizers used for...
Suppose the apple market is competitive. a. State the long run equilibrium condition of a typical...
Suppose the apple market is competitive. a. State the long run equilibrium condition of a typical profit-maximizing firm operating in a competitive market. Express your answer using marginal cost and average cost. (2 marks) b. Assume the market for apple is now operating at her long run equilibrium. Draw side-by-side diagrams to show the long run equilibrium conditions for a typical apple farmer and the market for apples. Label your diagrams clearly. (6 marks) c. Recently, there is a fall...
3. Suppose the market for rolled oats is perfectly competitive and is in a long-run equilibrium. For the following. be sure to carefully label your graphs and use subscripts as we have done in class! You can give your answers for each part on the same graphs. a. Draw the graphs below that illustrate the market and a representative firm in the initial long-run equilibrium (use the subscript 1 to denote each curve). What profits is the representative firm earning?...
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)
2nd picture is Average Cost curve
oncept: Long-Run Equilibrium 3 Ques representative firm in a perfectly competitive market. Assume all firms in the industry have the same cost structure. (Click the icon to view the average cost curve) Suppose the figure to the right illustrates the market, with a market supply curve 64 (S) and a market demand curve (D) How will this industry adjust to its long-run equilibrium? 1.) Using the line drawing tool, draw the market supply curve...
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points (10 points). b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry? (10 points)
Quick question I need answered as soon as possible
3. Cost curves, profits/losses, and long-run equilibrium: a. Draw typical short run average cost and marginal cost curves for a firm (costs on the vertical axis, q on the horizontal axis), such that marginal cost = average cost=6 at q=10. (5) b. Suppose this firm operates as a perfect competitor in a market with a short run equilibrium price of $5. Illustrate on your graph the area indicating the short run...
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