Suppose an industry has N> 1 identical producers with linear supply curves and an accident shuts down the activity of one producer. Which of the following statements is true? O The new supply curve will become flatter (more elastic). O The new supply curve will become steeper (less elastic). O The new supply curve will make a parallel shift to the right. O The new supply curve will make a parallel shift to the left. O None of the above. O No answer.
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- The following graph plots the market demand curve for rhenium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. PRICE (Dollars per pound) 80 72 64 56 48 40 32 24 16 8 0 Demand 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) Because you know that competitive firms earn Supply (10 firms) Supply (20 firms) True 4 If there were 30 firms in this market, the short-run equilibrium price of rhenium would be s would Therefore, in the long run, firms would O False Supply (30 firms) per pound. From the graph, you can…Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 75 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as jackfruit could decrease your expected lifespan by 5 years. The publication is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. 2 1 10 9 8 Supply Demand 0 0 + 15 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) In the long run, some firms will respond by + 1 } Demand Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news. 2 1 10 9 Supply Demand B…Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 100 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as jackfruit could increase your expected lifespan by 5 years. The publication is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 7 65 -run effects of a shift in demand 2 0 0 20 40 Supply Demand 60 80 100 120 140 QUANTITY (Millions of pounds) 160 180 200 O Demand Supply ? t.
- 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.Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 200 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could decrease your expected lifespan by 4 years. The publication expected to cause consumers to demand seitan at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 2 1 0 0 40 Supply Demand 80 120 160 200 240 280 320 360 QUANTITY (Millions of pounds) 400 Demand Supply (?)Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of $5 per pound of seitan and quantity of 25 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as seitan could decrease your expected lifespan by 5 years. The publication is expected to cause consumers to demand seitan at every price. In the short run, firms will respond by ▼ Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 7 6 5 2 1 0 10 In the long run, some firms will respond by 9 0 8 5 7 Supply Demand 10 15 20 25 30 35 QUANTITY (Millions of pounds) 40 45 50 Demand Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the blication and the new long- run equilibrium after firms and consumers finish adjusting to the news. Supply 1 Supply O Demand…
- Do you agree with the following statement? Give reasons with a complete explanation for your answer. Production possibilities frontiers can shift upwards without an increase in resources. The demand for a commodity increase when the price of its substitute increases. The income elasticity of the demand for luxury goods is always positive. Under perfect competition, a firm fix its price where its AR=MRConsider an industry with 60 firms. Using this information, please:a. Find short-run industry supply for 60 firms, each with TC = 5q + 15q2 + 20.b. Calculate (price elasticity of supply) for firm at q = 3c. Calculate (price elasticity of supply) for industry at Q = 180d. Find equilibrium (p, Q, q) if Qd = 25 – 5pe. Find equilibrium (p, Q, q) if Qd = 500 – 2pf. How much profit is made in this last case?g. What price would give zero profit?Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be Multiple Choice the same as the initial equilibrium price, but the new industry output will be greater than the original output. greater than the initial price, and the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output. the same as the initial equilibrium price, and the industry output will remain unchanged.
- Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5 per block of tofu and quantity of 25 million blocks per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tofu could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand tofu at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per block) 2 1 Supply Demand Demand 0 05 10 15 20 25 30 35 40 45 50 QUANTITY (Millions of blocks) In the long run, some firms will respond by Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per block) 2 10 9 Supply…re is a competitive industry with an infinite number of potential firms. All firms have the same cost function c( q) = + . Industry demand is Q = 100 − 5p, where Q is total industry output and p is the output price. Let n denote the number of firms in the industry. Find the long-run equilibrium number of firms (n), price and quantity produced by each firm.Which of the following is true about competitive firms? A firm with fixed/sunk costs receiving a price above its average variable cost will choose to stay in the industry in the short-run despite earning losses. Produce identical goods. An individual firm is too small relative to the market to impact the price. Is willing to supply a greater quantity if there is a reduction in the firm's marginal cost. Earn zero profits in the long-run because firms are free to enter or exit the industry over the long-run. They produce up until the point where the price equals the marginal cost of production.