Homework Answers
ANswer
Option 2
The economic loss discourages firms from producing wheat so fewer
firms produce wheat and decrease supply which increases price and
decreases quantity in the new equilibrium.
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Question 34 (1 point) Assume the market for wheat is perfectly competitive. At the current price...
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently...
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently the firm is producing 200 units at an average variable cost of $8, an average total cost of $12 and a marginal cost of $10. a. Is the situation described above a short-run equilibrium for XYZ? Explain. b. What is XYZ’s profit/loss? c. What is XYZ’s producer surplus? d. Should XYZ continue to produce in this situation? Explain. e. Assuming that XYZ is ‘average’...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently,...
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently, the firm is producing 200 units at an average variable cost of $8, and average total cost of $12 and a marginal cost of $10. (2) is the situation described above a short-run equilibrium for XYZ? Explain. (2) what is XYZ's profit loss? (2) What is XYZ's producer surplus? (2) Should XYZ continue to purchase in this situation? Explain (2) Assuming that XYZ is...
We assume that in the long run in a perfectly competitive market: the firms can enter...
We assume that in the long run in a perfectly competitive market: the firms can enter or exit. the number of firms is fixed. O collusion will set in without government regulation. the price will be constant. MC $15 MR 9 11 14 According to the graph shown, at point C the firm is earning: fewer profits than at point B, and they should produce more. higher profits than at point B, and they should produce more. fewer profits than...
For a perfectly competitive market made up of firms represented in the graph below, what is...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) MC ATC AVC $16 $14 $12 $10 Quantity $14 $10 $12 $16 For a perfectly competitive market made up of firms represented in the graph below, if the price is $14, Cost ($) MC ATC $16 AVC - $14 $12 $10 Quantity The firm is operating at its minimum long run average total cost....
Suppose the market for wheat is perfectly competitive. Suppose further the long-run supply curve in this...
Suppose the market for wheat is perfectly competitive. Suppose further the long-run supply curve in this market is increasing. Explain briefly if and how each of the following varies as market quantity increases: i) The number of firms ii) Input prices iii) Long-run profits Suppose firms in a monopoly competitive market produce their profit-maximizing quantity, and their average total cost equals their marginal revenue. Should firm entry or exit in the long run?
Assume that the perfectly competitive market for ethanol is in long-run equilibrium. Now suppose that the...
Assume that the perfectly competitive market for ethanol is in long-run equilibrium. Now suppose that the price of gasoline, a substitute for ethanol, increases. Explain what will happen in the market for ethanol. 1) Describe how this change will affect short-run economic profits. 2) What will happen to the number of firms producing ethanol in the long run? 3) How will price and output in this industry adjust in the long run?
Please help with these questions Question 21 0.4 pts The market for candles is perfectly competitive...
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: ? 100 90 MC BO 70 60 ATC 50 COST (Cents per bushel) 40 30 20 AVC 10 0 O 5 10 15 20 25 30 35 QUANTITY OF OUTPUT (Thousands of bushels) 40 45 50 The following graph shows the market demand for wheat. Use the...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
We assume that in the long run in a perfectly competitive market: the firms can enter or exit. the number of firms is fixed. O collusion will set in without government regulation. the price will be constant. MC $15 MR 9 11 14 According to the graph shown, at point C the firm is earning: fewer profits than at point B, and they should produce more. higher profits than at point B, and they should produce more. fewer profits than...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) MC ATC AVC $16 $14 $12 $10 Quantity $14 $10 $12 $16 For a perfectly competitive market made up of firms represented in the graph below, if the price is $14, Cost ($) MC ATC $16 AVC - $14 $12 $10 Quantity The firm is operating at its minimum long run average total cost....
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: ? 100 90 MC BO 70 60 ATC 50 COST (Cents per bushel) 40 30 20 AVC 10 0 O 5 10 15 20 25 30 35 QUANTITY OF OUTPUT (Thousands of bushels) 40 45 50 The following graph shows the market demand for wheat. Use the...
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