Sleek Sneakers Co. is one of many firms in the market for shoes. Show the effect that positive profits has on the demand curve faced by Sleek in the long run. Price Quantity Demand Demand ?
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- The folowing diagram shows the curves for perceived demand, marginal revenue, and cost for Manuela's Pizza, which serves Mexican-style pizza. Manuela's is one of many other fast food restaurants in this town. MC Price and Cost ATC Demand Quantity of piezas Which statement describes the transibon to the long nun? Select the best answer. O More fast food restaurants will enter the market, and Manuela's demand curve will become more elastic. Manuela's will raise its prices since there is a large demand for its pizzas. O More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic. Manuela's will experience lower costs of production because it will expand its output.How many brands enter the flat-panel tv market between 2002 and 2007? what will economic profit in the long run?What is the slope of average revenue curve in a market In which firm can sell more only by lowering the price?
- The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. Use the black point (plus symbol) to indicate Crest's profit-maximizing output and price. (?) Price, Cost, Revenue Demand ATC O True MR Quantity of Crest Toothpaste True or False: Crest's profit is positive. + Profit MaxThere are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a unique design. How will the demand for pens faced by the existing pen manufacturers in Corinthia be affected if new firms enter the industry in the long run? a. The demand curve faced by the existing firms will become perfectly elastic. b. The demand faced by the existing firms will decrease. c. The demand curve faced by the existing firms will become perfectly inelastic. d. The demand faced by the existing firms will increase.1. Below is the price and quantity information a firm. For example, at a price of $2.80, 60 units are sold. P1 = 3.20 Q1 = 40 P2 = 2.80 Q2 = 60 P1 = 2.20 Q1 = 90 P2 = 1.80 Q2 = 110 P₁ = 1.20 Q1 = 140 P2 = 0.80 Q2 = 160 a. Construct the demand curve for this firm with P on the vertical and Q on the horizontal axis. b. Using the equation for PED, calculate the price elasticity of demand. Use absolute value to determine and describe the range of elasticity. c. Using the results from "b" and the equation for TR, analyze the relationship between the ranges of elasticity and revenues. d. Using the graph from "a" and the analysis from "c," predict the price this firm will likely charge customers. Why?
- What are Coca-Cola's competitive advantages?Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate which of the following graphs accurately reflects Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. (?) ?) A B Demand Demand ATC ATC MC- MC- MR MR Quantity of Sparkle Toothpaste Quantity of Sparkle Toothpaste A B Price, Cost, Revenue Price, Cost, RevenueSuppose you are in charge to analyze the future price trend of a brand. What do you suggest about the price? What should be the change in it in future for market equilibrium if it is currently at P1 and also explain whether there is a surplus or a shortage in this current market?
- Would a competitive firm ever engage in advertising? Explain.Dana is a dot-com entrepreneur who has established a Web site at which people can design and buy awatch. Dana pays $200 a month for a Web server and Internet connection. The watches that customers design are made to order by another firm, and Dana pays this firm $60 a watch. Dana has no other costs. The table shows the demand schedule for Dana's watches. What is Dana's profit-maximizing output, price, and economic profit? Dana's profit-maximizing output is Dana's profit-maximizing price is $ Dana's economic profit is $ a month. watches a month. a watch. Price (dollars per watch) 100 80 60 40 20 0 Quantity (watches per month) 0 20 40 60 80 100The components of marginal revenue Andrew's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Andrew produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Andrew faces. As you can see, to sell the additional engine, Andrew must lower his price from $80,000 to $60,000 per fire engine. Note that although Andrew gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. (GRAPH 1) Andrew _____ increase production from 8 to 9 fire engines, because revenue…