Consider the figure below. If the industry is perfectly competitive and the market price is $15, what do we expect to happen in the long run? P $15 S₂ D₂ O O Supply will shift from $1 to $2 O Supply will shift from S2 to $1 000 Demand will shift from D1 to D2 O Demand will shift from D2 to D1 MC ATC MR-P

Consider the figure below. If the industry is perfectly competitive and the market price is $15, what do we expect to happen in the long run? P $15 S₂ D₂ O O Supply will shift from $1 to $2 O Supply will shift from S2 to $1 000 Demand will shift from D1 to D2 O Demand will shift from D2 to D1 MC ATC MR-P

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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The figure below depicts the market supply and demand for the perfectly competitive rollerblade industry. S Price per pair of Rollerblades 1,140 070 50 150 Number of pairs of Rollerblades per week Based on the figure above, if the current quantity demanded of rollerblades is 150 per week, you accurately predict that in the short run, Q Select one: a. price and quantity supplied will increase and quantity demanded will decrease. b. price and quantity supplied will decrease and quantity demanded will increase. c. price, quantity supplied and quantity demanded will increase. d. price, quantity supplied and quantity demanded will decrease.
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Consider the figure below. If the industry is perfectly competitive and the market price is $15, what do we expect to happen in the long run? MC ATC y P $15 ******** D₁ Q Supply will shift from $1 to $2 Supply will shift from $2 to S1 O Demand will shift from D1 to D2 Demand will shift from D2 to D1 O MR-P
Use the information in the graphs below to answer the following questions SAb $/gal 25- S1 25 H MC ATC 20 20 15 15 P1 10 10 P2 5 4 6 8 10 2. Thousands of gal/week 1 3 Millions of gal/week What is the long-run equilibrium price in this market? Please enter your answers as whole numbers with and do not type out your answer in words (ie. $5 or $5.00 not "Five dollars"). How many gallons per week will the individual firm produce to maximize profits in equilibrium? Please enter your answers as whole numbers with no extra words (ie. 5000 not "5000 gallons/week"). What is the individual firm's long run economic profit?
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explain your answers in detail and use graphs whenever appropriate: The market for rental cars is very competitive. How would the following developments affect the quantity of car rentals that a typical rental car company wants to supply in the short run? a. With the easing of fears about Covid 19, people are more excited to travel than before. b. Local governments reduce the yearly fee that rental car companies have to pay for their facilities. Note, these fees do not vary with how many cars the company rents. c. Rental car companies have to pay higher wages for their workers. Suppose that initially the market for rental cars is in long-run equilibrium. a. What does the fall in the yearly fee rental car companies have to pay for their facilities do to the profits of a typical rental car company in the short run? b. What will happen to the equilibrium price and quantity of rental cars in the long run? Why? What will happen to the profits of a typical rental car company in the long run?
Assume that the market for pasta is in long-run equilibrium and that the pasta industry is a constant-cost industry. Explain with a graph and words what will happen to the price and quantity in the market when the demand for pasta decreases.
The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.
Hello, can u help me with this mcq question? the last expert got it wrong. Price $10 $8 $7 $6 $4 Show Transcribed Text 18 MC ATC AVC D-MR-AR 1-Refer to the figure, if the market price is $8, what will happen in the long run? a)Nothing will change in the industry and this firm will earn zero economic profit b)Firms will exit the industry until each firm is earning zero economic profit c)This firm will exit the industry d) New firms will enter the industry because there's opportunity for positive profits 2-Refer to the figure, if the market price is $6: a) This firm will cease production in the short run and bear losses equal to it's total fixed cost b)This firm will continue operating in the short run and it will expand it's production in the long run c)This firm will continue operating in the short run, but it will exit the industry in the long run d) This firm will continue operating in the short run and in the long run 3-Refer to the figure, if the market price is $10 a) This firm…
In a competitive market, are market supply curves typically more elastic in the short run or in the long run? Explain within 40 words.
A Wall Street journal headline states: "a nation of snackers snubs old favorite: the beloved cookie" as u.s. consumers adopted more carbohydrate-conscious diets, the number of cookie boxes sold declined 5.4 percent that year, the third consecutive year of decline. a. Assuming the cookie industry is perfectly competitive demonstrate using market supply and demand curves the effect of this decline in demand on equilibrium price and quantity in the short run. b. Assuming a cookie form was in equilibrium before the change in demand, and it is a constant-cost industry, demonstrate the effect of the decline in equilibrium price for an individual cookie firm in the short run. c. How might your answer to question "a" if you are considering long run?
Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm produces 20,000 tablets per month, total costs for this production are $1,800,000, and the minimum of the average variable costs is $70, what price will Instructions: Enter your responses as a whole number. a. induce entry into the market? When the price rises above $ b. cause firms to shut down production in the short run?