Multiple choice - microeconomics 43) What will entry into a market by new firms do? A. It will increase the price of the good B. It will increase profits of existing firms C. It will increase the costs of existing firms D. It will increase the supply of the good.
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Multiple choice -
43) What will entry into a market by new firms do?
- A. It will increase the price of the good
- B. It will increase profits of existing firms
- C. It will increase the costs of existing firms
- D. It will increase the supply of the good.
42) What is one consideration that applies to the analysis of a market over the long run but not to the analysis over the short run?
- A. changes in firms’ cost structures
- B. changes in the numbers of firms in the market
- C. changes in the price of the product
- D. changes in firms’ profits
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- Multiple choice question - Micro 33) In a competitive market that is characterized by free entry and exit, what will be the result? A. All firms will operate at efficient scale in the short run. B. The price of the product will differ across firms. C. All firms will operate at efficient scale in the long run. D. The number of sellers in the market will steadily decrease over time 32) When profit-maximizing firms in a competitive market are earning profits, what must be happening in the market? A. The most inefficient firms will be encouraged to leave the market. B. New firms will enter the market. C. Market supply must exceed market demand at the market equilibrium price. D. Market demand must exceed market supply at the market equilibrium priceExplain what a competitive market is and describe a market type that is not perfectly competitive. Discuss the demand schedule and the demand curve, as well as how they are related to one another. Discuss the supply schedule and the supply curve, as well as how they are related to one another. Define the equilibrium of a market and identify at least two forces that move a market toward equilibrium.onsider the general impact of the war in Ukraine on the market for wheat. The April 30, 2022 issue of The Economist had an article titled “Can Brazil help with food shortages around the world?”. You do not have to read the story to understand the setup of these questions. Please, carefully read each question to understand when these changes are introduced into the initial scenario. Here is what you should focus on to complete your analysis. For this analysis, assume the wheat market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped ATC and AVC. Finally, for all questions, assume market price is always greater than the minimum of the AVC. You will be using the same graph in all questions that require a graph (Questions 6, 8, and 10), with each question asking you to add new elements to the graph as part of your analysis. 1) Assume that prior to the outbreak of the war in Ukraine, the wheat…
- Explanation with an example1-Perfectly competitive market2-Competitive marketLet’s consider an economy where all firms are favouring remote work to favour physical distancing and avoid the spread of a virus. To achieve these goals all firms receive a subsidy to equip their workers with a laptop. Consider that the market for laptops is in perfect competition and initially at the equilibrium. Explain the impact of the pandemic on the supply, demand, equilibrium on market of computers. Give a graphical representationTable showing Market Demand Price Quantity Demanded Quantity Supplied $90 20 $65 30 $45 40 $35 50 $25 60 $15 70 $10 80 What is the equilibrium price and quantity given this information on demand in the market? Is each firm making a profit or loss? What is the amount of that profit or loss? What do you predict will happen over the long run? What if the information regarding market demand and market supply is conveyed in equations rather than tables? Practice how you would find equilibrium in a competitive market using equations for demand and supply. Suppose in a competitive market the market demand can be represented as follows: P=10−Q(andthusQ=10−P) and that market supply can be represented as follows: P=Q. Using the fact that at equilibrium the quantity demanded equals the quantity supplied, find the equilibrium price and quantity in this market.
- You are hired as a microeconomist by the United States government to analyze the plum market. You receive the following task: Consider the market for plums as perfectly competitive. (Please use perfect competition explanation and diagrams) Question 1: “We have noticed that the price of plums is skyrocketing. Do you think that the price will remain high? Should we impose price controls that force prices to be low? Why? Why not?"Question 4 If firms are competitive and profit maximizing, the price of a good equals the... Group of answer choices marginal cost of production. average variable cost of production. total cost of production. average total cost of production.I DO NOT NEED THE CHART I ONLY NEED THE QUESTIONS Quantity of Output Total Cost Marginal Cost Average Total Cost 0 $100 1 $120 2 $135 3 $145 4 $160 5 $180 6 $205 7 $240 8 $285 9 $350 10 $440 Approximately where do you think the price will end up in this market over the long run? Explain your answer. Last, instead of assuming a given price, how would you go about finding the equilibrium price if you were given information on market demand? Assume that this market is made up of 10 identical sellers with costs as above, and that market demand can be given as below. It may be useful to construct a column for market supply knowing the cost information per seller and that there are ten identical sellers in the market.
- In graph A below shows the market demand and supply in a competitive market, and graph B shows the cost curves of a representative firm in that industry. a. What are the market equilibrium price and quantity? Equilibrium price: $ Quantity traded:b. At equilibrium, what quantity is the firm producing? What is its total profit or loss? Leave no cells blank - be certain to enter "0" wherever required. Quantity: Total profit or loss $homework Question 1: During the pandemic, many workers started to work from home using digital technologies. Children also started homeschooling using digital technologies. At the same time, technological progress has accelerated in the IT industry. Assume that the market for computer is in perfect competition and that the initial price of a computer is 1000 dollars. Given this context, explain the impact of the pandemic on: The supply curve of computers (answer in 70-130 words) The demand curve of computer (answer in 70-130 words) The equilibrium in the market for computers (answer in 70-130 words).Solve the following microeconomics exercises (please include graphs and detailed explanations with all the mathematical operations that were used ) This is all the info that was proportioned. 1.-Perfect competition: The total revenue for a firm in a perfectly competitive market is the product of price and quantity (TR = P * Q). Total cost = Q^2+2Q+6 Demand eq:200-4P supply eq:4P Determine: a) Market equilibrium (graph) b) consumer surplus c) producer surplus 2-duopoly Total cost: Q^2+2Q+4 Demand eq:100-6P Determine: a) Cournot's equilibrium b) collusion case c) in what case Eq1 breaks the balance d) stackelberg equilibrium 3-monopoly Total cost :2Q^2+10Q+80 Q=656-4P Determine: a) optimal production b) equilibrium price c) monopoly profit d) irrecoverable loss
