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Describe the two conditions necessary for attaining equilibrium for a firm in the shortrun.
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- Describe the situations under which a firms capacity must lag and lead to the demand ?If a price-taking firm’s production function is given by q = √6l , its short-run supplyfunction is given by(a) q = 3Pw.(b) q = 3P/w.(c) q = P/(3w).(d) q = 3w/P. Please explain reason correctly.if the rent of the building the firm occupies increases what will happen to the firm's profit-maximizing quantity of output in the short run.
- Please answer the correct answer ASAP please calculation please Don't answer by pen paper please ASAP The market for bananas is also perfectly competitive. Each banana-growing firm has cost function C(Q)=145+ 20Q+0.75Q2. The aggregate demand for bananas is 1500-2P. Find the long-run aggregate quantity of bananas sold in this market.Distinguish between short-run and long-run supply curves.If the rent of the building the firm occupies increases, what will happen to the firm’s profit-maximizing quantity of hats in the short run?
- Explain why a long-run supply curve might slope upward.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. The following diagram shows the market demand for titanium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. If there were 20 firms in this market, the short-run equilibrium price of titanium would be $_______ per pound. At that price, firms in this…Give an example of a price at which this firm would want to produce and sell output in the short run, but not in the long run.
- Illustrate and explain how the short-run supply curve of a price-taking firm is determined.For each of the following events identify which of the determinates of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Why? A stock market crash lowers people’s wealth. Batelco increases the prices of mobile services. Diminishing returns mean rising costs while economies of scale mean falling costs. Therefore, a firm cannot be facing both diminishing returns and economies of scale. Do you agree? Why or why not?In 2016, Netflix increased prices for their U.S. subscribers from $7.99 to $9.99 per month.1Following the price increase, the rate of subscription growth decreased significantly, from 1.56 (in the fourth quarter of 2015, before implementing the price increase) to 0.40 (in the third quarter of 2016, after implementing the price increase). In addition, the stock price of the company fell by about 16% (price dropped in July 2016, after releasing the second quarter earnings, to $85.84 per share, from $102.23 on March 31, 2016). How much is the price elasticity of demand for Netflix subscription in this case, using the midpoint method when calculating the percentage change.