In recent years fresh bagel sales have been growing at about 30% per year. Once considered an ethnic food to be eaten only by some consumers, bagels now “have become the new doughnut to bring to the office.” But one problem with bagels is that they get stale fast. In the words of Ray Lahvic, editor emeritus of Bakery Production and Marketing, “The worst thing in the world is a day-old bagel.” If a market researcher asserts that the slope of the typical consumer’s indifference curve between fresh bagels and day-old bagels is -1, would you agree with Mr. Lahvic’s statement about fresh and day-old bagels given above? Please explain

Omari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced eight trucks, but then decided to increase production to nine trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $80,000 to $40,000 per truck. Notice that Omari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold 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 $40,000 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 $40,000. PRICE (Thousands of dollars per fire engine) 220 200 180 160 140 120 100 80 60 40 20 0 Omari 0 1 + 2 3 4 5…

A4

Herriott's is the only veterinary clinic in a remote village. The graph shows the demand curve for the firm's vet visits. Now suppose that there are 30 veterinary clinics, all able to produce these vet visits at zero marginal cost and with zero fixed costs. How does the equilibrium price and quantity produced with 30 veterinary clinics compare to Herriot's price and quantity produced? Draw the supply curve when there are 30 veterinary clinics. Label it. Draw a point at the equilibrium price and quantity. The monopoly price is The monopoly output is A. higher; less B. higher; greater OC. lower; less D. lower; greater than the perfectly competitive price. than the perfectly competitive output. C 120 100- 80- 60- 40- 20- 0- 0 Price and cost (dollars per visit) D 8 24 16 32 Quantity (visits per day) >>> Draw only the objects specified in the question. 40 ON 48