Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium? P < MC MR < MC P = AR MR > MC
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- Assume that the gold-mining industry is perfectly competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for a representative gold mine. b) Suppose that an increase in jewelry demand induces a surge in the demand for gold. Using your diagrams, show what happens in the short run to the gold market and to each existing gold mine. c) If the demand for gold remains high, what would happen to the price over time? Specifically, would the new long-run equilibrium price be above, below, or equal to the short-run equilibrium price in part b)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. The following graph shows Hi-Tech's initial marginal-cost curve (MC1MC1) and average-total-cost curve (ATC1ATC1) before the new technology, and its marginal-cost curve (MC2MC2) and average-total-cost curve (ATC2ATC2) after the new technology. Now suppose the patent expires and other firms are free to use the technology. Which of the following statements are true about what happens in the long run? Check all that apply. The market price stays at P1P1. Hi-Tech's average-total-cost curve rise back to ATC1ATC1. All firms earn zero profit.Suppose that the market for pizzas in your town is perfectly (or purely) competitive, with a market price of $14 per pizza in long run equilibrium. A local pizza restaurant, Pizzazzy, signs a one-year lease in a new building in town and continues selling pizzas at this price. People in your town view Pizzazzy pizzas as the same as other pizzas. Suppose that a couple of months after the new pizza restaurant opens, the local government institutes a $8 per pizza price ceiling. If you buy a $8 pizza from Pizzazzy a week later (and assuming Pizzazzy is behaving rationally), what do you know about the marginal cost, average total cost, and average variable cost at the profit maximizing point of production after the price ceiling is imposed? Answer Bank marginal cost no higher than $8 no higher than $14 but definitely higher than $8 average total cost higher than $14 no higher than $14 but average variable cost maybe higher than $8
- The behaviour of a firm depends on the features of the market in which it sells its product(s) and on its production costs. The following diagrams illustrate the possible short-run equilibrium positions of two firms. Firm A MC AC Po AR=MR Quantity Both firms employ the marginal approach to determine profit in the short-run. However, differ with regards to certain market structure criteria: The number of firms in the market The nature of the good or service sold Ease of entry for new competitors into the market Control that the firm has over price In scenario 7, the possible short-run equilibrium positions of two firms are given. With reference to "Firm A", answer the following question. 9.1 Identify the market structure of Firm A. 9.2 Using the marginal approach to determine profit, is Firm A making a short-run profit or loss? Explain your answer with reference to the provided diagram. OFocus Unil revenue and costUnit 10 - Competition - Microeconomics The market for coffee near Sarbucks stores is perfectly competitive (all firms are price takers). Graph the long-run market equilibrium for coffee and for Sarbucks as an individual firm in this market in spaces below. Make sure to identify the market S&D, firm S&D, and firm ATC and AVC curves. How much profit is the firm making? Discuss with your group why this profit is synonymous with being in a long-run equilibrium. Now suppose that coffee shop coffee is a normal good and income goes up. Starting from the diagram in (1), show and discuss with your group how the market will adjust towards a short-run equilibrium and then return to a long-run equilibrium. What happen to the market price and quantity in the short-run? What happens to individual firm output and the number of firms in the short-run? What is the profit in the short-run? What happen to the market price and quantity in the long-run? What happens to individual firm output…Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- Unit10 - Microeconomics Multiple choice A firm in perfect competition is a price taker because there are no good substitutes for its good. they are profit maximizers. it is very large. many other firms produce identical products. Under what condition would a perfectly competitive firm who is incurring an economic loss temporarily stay in business? if the total revenue is positive if the total revenue exceeds the variable cost if the total revenue exceeds the fixed cost if the total revenue is increasing When firms in a perfectly competitive market are making earning an economic profit, in the long run, firms will exit the market. firms will continue to earn a profit. average cost will shift downward. firms will enter the market.Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. The following graph shows Hi-Tech's initial marginal-cost curve (MC1) and average-total-cost curve (ATC1) before the new technology, and its marginal-cost curve (MC2) and average-total-cost curve (ATC2) after the new technology. ATC, ATC2 MC1 MC2 Quantity of Books +--- P. Price of BooksSuppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. The following graph shows Hi-Tech's initial marginal-cost curve (MC1) and average-total-cost curve (ATC1 ) before the new technology, and its marginal-cost curve (MC2) and average-total-cost curve (ATC2) after the new technology. Price of Books ATC1 * MC₁ MC 2 Quantity of Books ATC2 ?
- Assume that the MBA education industry is constant-cost and is in long-run equilibrium. Discuss what long-run equilibrium means. Market demand increases, but due to strict accreditation standards, new firms are not permitted to enter the market. Explain the nature of the original long-run equilibrium then analyze the determination of a new long-run equilibrium, showing the effects with the aid of graphs for a representative school as well as for the market as a whole. Explain with a compare/contrast analysis how your analysis changes if MBA’s are produced in an increasing cost industry. Page limit, one page and one page for supporting graphs.Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. Suppose Hi-Tech's patent prevents other firms from using the new technology. Which of the following statements are true about what happens in the short run? Check all that apply. Hi-Tech's marginal-cost curve remains the same. Hi-Tech's profits increase. The price of books remains the same. Hi-Tech's average-total-cost curve shifts downward.What are the advantages of scale in capitalist competition?