a) Using both market and firm graphs for a perfectly competitive industry, show the effect of...
a) Using both market and firm graphs for a perfectly competitive industry, show the effect of an increase in consumers’ income taxes. Assume the representative firm and market begin in long run equilibrium. Illustrate the short run effect on price, output, and profits, assuming this firm does not shut down. Label your graphs and explain your answer.
b) Assuming the representative firm does not withdraw from the market, show the long run effect on price, output, and profits. Label your graphs and explain your answer.
Homework Answers
Add Answer to:
a) Using both market and firm graphs for a perfectly competitive
industry, show the effect of...
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?...
Suppose the market for rice is perfectly competitive. What effect will the widespread popularity ...
please explain your answer
I need a correct answer. thank you
Suppose the market for rice is perfectly competitive. What effect will the widespread popularity of quinoa (as a replacement for rice) have on the rice market in the short run and the long run? Illustrate with two carefully labeled graphs showing the effects at both the market level and the firm level **the price axes on the two graphs should be linked with each other.**
Suppose the market for...
The market for coffee is perfectly competitive, has a large number of identical firms, and is...
The market for coffee is perfectly competitive, has a large number of identical firms, and is in LONG-RUN equilibrium. The market demand curve is downward sloping, and the cost schedules have their usual shapes. Market price for a unit of coffee is $10. There is a decrease in the price of tea, a substitute for coffee. [A] In the SHORT RUN, in appropriate diagrams, show what happens to price, industry output, and the output and profits of a representative firm...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual firm earning an economic profit, including MR, MC, AVC, and ATC. On the second, show the short-run market equilibrium price and quantity. Explain how the industry supply curve and the market equilibrium price and quantity are determined. 2. What is the relationship between the price on the two graphs? Why does this relationship exist? 3. Explain why a firm in a perfectly competitive industry...
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...
#5 75. The graphs below show the market demand and supply curves for a good in...
#5
75. The graphs below show the market demand and supply curves for a good in a perfectly competitive industry along with a representative firm's short-run average and marginal cost curves. a. Determine the equilibrium price (label Pe) and output (label Qe) in the market. b. Draw the firm's demand (label d) and marginal revenue (label MR) curve. c. Determine the profit maximizing output (label 4). Explain why this is the profit-maximizing output d. Is the firm earning a profit...
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)
2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the...
2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the market supply curve to shift rightwards, but the market does not reach its long run state. a. Draw two corresponding graphs, side-by-side, that allustrate this shift. One is the market supply and demand graph, and the other is the profit-maximizing production choice of a typical firm. Using your graph, explain b. How do price and marginal revenue change as firms enter c. How do MC...
Introduction to Microeconomics Deriving the Short-Run Supply Curve for the Perfectly Competitive Firm Cost $ 0...
Introduction to Microeconomics Deriving the Short-Run Supply Curve for the Perfectly Competitive Firm Cost $ 0 10 20 30 40 50 60 70 80 90 100 110 Outputs tunits) The figure illustrates the costs faced by a perfectly competitive firm. Use the figure to answer the following: 1) Based on the above, indicate on the graph, the short-run market supply curve for the perfectly competitive firm. 2) At what price will the firm shut-down? Will the firm leave the industry?...
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?...
please explain your answer
I need a correct answer. thank you
Suppose the market for rice is perfectly competitive. What effect will the widespread popularity of quinoa (as a replacement for rice) have on the rice market in the short run and the long run? Illustrate with two carefully labeled graphs showing the effects at both the market level and the firm level **the price axes on the two graphs should be linked with each other.**
Suppose the market for...
The market for coffee is perfectly competitive, has a large number of identical firms, and is in LONG-RUN equilibrium. The market demand curve is downward sloping, and the cost schedules have their usual shapes. Market price for a unit of coffee is $10. There is a decrease in the price of tea, a substitute for coffee. [A] In the SHORT RUN, in appropriate diagrams, show what happens to price, industry output, and the output and profits of a representative firm...
#5
75. The graphs below show the market demand and supply curves for a good in a perfectly competitive industry along with a representative firm's short-run average and marginal cost curves. a. Determine the equilibrium price (label Pe) and output (label Qe) in the market. b. Draw the firm's demand (label d) and marginal revenue (label MR) curve. c. Determine the profit maximizing output (label 4). Explain why this is the profit-maximizing output d. Is the firm earning a profit...
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)
2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the market supply curve to shift rightwards, but the market does not reach its long run state. a. Draw two corresponding graphs, side-by-side, that allustrate this shift. One is the market supply and demand graph, and the other is the profit-maximizing production choice of a typical firm. Using your graph, explain b. How do price and marginal revenue change as firms enter c. How do MC...
Introduction to Microeconomics Deriving the Short-Run Supply Curve for the Perfectly Competitive Firm Cost $ 0 10 20 30 40 50 60 70 80 90 100 110 Outputs tunits) The figure illustrates the costs faced by a perfectly competitive firm. Use the figure to answer the following: 1) Based on the above, indicate on the graph, the short-run market supply curve for the perfectly competitive firm. 2) At what price will the firm shut-down? Will the firm leave the industry?...
Most questions answered within 3 hours.
-
At December 31, 2020, Pharoah Company has outstanding three
long-term debt issues. The first is a...
asked 14 seconds from now -
Life requires energy. Use what you know about the energy
transformations that occur in animal cells...
asked 4 minutes ago -
Improving access to medical care has been a challenge in the
U.S. health care system. How...
asked 5 minutes ago -
Engineers must consider the breadths of male heads when
designing helmets. The company researchers have determined...
asked 36 minutes ago -
In the Williamson Ether Synthesis of Phenacetin from
Acetaminophen, sodium methoxide in methanol and 100% ethanol...
asked 40 minutes ago -
If the spin of the earth suddenly changed to spin in the
opposite direction, what effect...
asked 54 minutes ago -
An orb weaver spider with a mass of 0.23 grams hangs vertically
by one of its...
asked 50 minutes ago -
Determine the sample size required to estimate the mean score on
a standardized test within
2...
asked 1 hour ago -
The idea that one can remain relatively 'anonymous' on the
internet if they so choose, for...
asked 59 minutes ago -
In the reaction of N2 and H2 to produce
NH3, how many moles of H2 will...
asked 1 hour ago -
When a certain coin is flipped, the probability of
obtaining a tails is 0.55. Which of...
asked 58 minutes ago -
Can you show how a sulfonic acid group
is introduced into an aromatic ring by Friedal...
asked 1 hour ago