In the short-run equilibrium of a perfectly competitive market with identical firms that are profit-maximizing, if new firms are about to enter, which of the following is true? a. P > MC and P > ATC b. P > MC and P = ATC c. P = MC and P > ATC d. P = MC and P = ATC
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Hello my question is from my homework...it is:
In the short-run equilibrium of a
a. P > MC and P > ATC
b. P > MC and P = ATC
c. P = MC and P > ATC
d. P = MC and P = ATC
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- Determine whether each of the statement is true, false, or uncertain. If the statement is false or uncertain, please correct the statement to make it true. If the statement is true, please explain your answer briefly. Give a brief definition of any underlined term. a. In the long run equilibrium of a competitive market, all firms are earning normal profits and operating at the efficient scale. b. The competitive firm’s supply curve is upward sloping and its demand curve is downward sloping.Suppose that the perfectly competitive market for wheat spaghetti is in long-run equilibrium. Suppose also that campaigns for fighting obesity make students on lots of college campuses in the US aware of the fact that excessive pasta (including spaghetti) consumption has an adverse effect on body weight, and these campaigns provide an incentive for students to restrict spaghetti consumption. How do the campaigns described above affect the market for wheat spaghetti in the US, that is does the supply or the demand curve for wheat spaghetti shift and in what direction? How are the equilibrium price and quantity of wheat spaghetti affected in the short run? What happens to the short-run profit of the typical producer of wheat spaghetti in the US? What will be the price of wheat spaghetti in the long run? What profit will producers of wheat spaghetti make in the long run? Explain how this outcome is achieved. Use two graphs: one showing the market supply and demand curves for wheat…Explain how purely competitive firms can use the marginal-revenue–marginal-cost approach to maximize profits or minimize losses in the short run.
- In the short-run equilibrium of a competitive marketwith identical firms, if new firms are getting readyto enter, what are the relationships among price P,marginal cost MC, and average total cost ATC?a. P > MC and P > ATC.b. P > MC and P 5 ATC.c. P MC 5 and P > ATC.d. P MC 5 and P 5 ATC.Consider the competitive market for products known as Bergers where there are 500 firms – with each firm in equilibrium. a.Draw the graph of the market and the graph of one of these initial 500 firms in its equilibrium that includes the curves for P, MC and ATC. b. Suddenly, a huge number of entrepreneurs enters the market so the number of firms increases by 500. Please draw what happens to the market and to the firm in the short run on the graphs above. Does the P increase or decrease? Does q increase or decrease? Does Q increase or decrease?please answer question 11 and 12 and 13 11- the market price for the product is $29. If company A wants to maximize its profits and sells in a purely competitive market, how many should they produce? 12- using the price given in Q 11, will company A make an economic profit or economic loss? Show your calculation 13- given the economic profit/loss calculate in Q12, will firms enter or leave this industry or is this industry at long run equilibrium? Why?
- A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Draw a table with multiple columns to help you answer the following questions. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? If the marginal cost of planting and harvesting an acre is $7,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?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.Now consider any perfectly competitive market and suppose there are 'n' firms in the market in the long-run initially, but then the product becomes super-trendy and demand doubles. How many (new) firms enter the market? Whydon’t you need to know the cost and demand curves?
- Answer the following question based on the graph below, which is for Blue Smooth Yoga Mats Ltd. one of 50 small firms operating in the industry. a. What is the profit-maximizing output? Output: b. What price will the firm charge? Price: $ c. How much excess capacity exists at the output in (a)? Excess capacity: d. Is Blue Smooth making economic profits? e. Is the current situation long-run equilibrium?Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average total cost is $7.50, and the marginal cost is $10.00. What would you expect the firm to do in the short run? Why? What would you expect the market to do in the long run? Why?For each of the below, indicate if the curve in question would shift to the left, to the right, or not at all. Assume perfect competition, and that other than the change listed everything else remains the same (i.e. ceteris paribus). How would the DEMAND CURVE shift if there was… An increase in income and the good is a normal good A decrease in the price of a substitute good A decrease in population An increase in the taste for the good A decrease in the price of a complimentary good How would the SUPPLY CURVE shift if there was… A decrease in the number of firms in the market A decrease in the current price of the product An increase in productivity A decrease in the expected future price of a product An increase in the price of an input
