A small town is served by many perfectly competing supermarkets, which have constant marginal cost. a. Using a diagram of the market for groceries, show the (long-run) equilibrium price and quantity. b. Mark the deadweight loss in the picture and explain what it is.
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A small town is served by many perfectly competing supermarkets, which have constant marginal cost.
a. Using a diagram of the market for groceries, show the (long-run) equilibrium price and quantity.
b. Mark the
c. Show the
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- (a) Find the point (A, B, C, D, or E) that corresponds to the profit maximizing price and quantity. (Select only one letter.) (b) Which number corresponds to consumer surplus on the graph? (c) Which number corresponds to producer surplus on the graph? (d) Which number corresponds to deadweight loss on the graph?Question 2 Suppose Demand for Apples (in bushels) is given by Q = 90-2P and Supply is given by Q = P. The market for apples is dominated by a single, monopolistic firm "NYC Apples". Suppose you could regulate the market for Apples and impose a price ceiling. What price would maximize social welfare (combined producer and consumer surplus)? Full explain this question and text typing work only thanksPlease submit the answer and then watch the video feedback.Farmer Ted sells 1,000 bushels of wheat at a price of $5 per bushel in a competitive market. Wilma sells 5 gallons of water at a price of $5 per gallon in a monopoly market. If both Farmer Ted and Wilma want to sell a higher quantity, what happens to their respective prices? a.Farmer Ted's price remains constant and Wilma's price decreases. b.Farmer Ted's price decreases and Wilma's price remains constant. c.Farmer Ted's price remains constant and Wilma's price increases. d.Both Farmer Ted's and Wilma's prices decrease.
- a. If only two firms exists in the market and they act competitively, find the equilibrium price and quantity, and calculate producer and consumer surplus. If you know firms earn zero profit, what must their fixed cost be? b. Calculate the elasticities of market supply and market demand at the equilibrium point. Which one is more elastic?Market concentration measures fail to accurately assess the industry market power. Why?q19- Bestway pet grooming are the only dog groomers in a Smalltown, they have a thriving business charging $30 per dog washed and groomed. A dog groomer from a neighbouring town sees an opportunity to expand their business and starts offering dog grooming in Smalltown. What will be the impact on Bestway? Select one: a. Consumer and producer surplus will both increase b. A new firm in the market will increase competition and decrease producer surplus for Bestway dog grooming c. They will increase their sales and producer surplus d. Consumers will have longer wait times, as dog grooming demand will increase
- What type of equation is this? TR - PS A)Producer Cost B) Deadweight Loss C) Consumer Surplus D) ProfitHow would you describe the development of the market regulation and the concept of "fair competition" in the market?Use the graph to answer the questions. (a) Find the point (A, B, C, D, or E) that corresponds to the profit maximizing price and quantity. (Select only one letter.) (b) Which number corresponds to consumer surplus on the graph? (c) Which number corresponds to producer surplus on the graph? (d) Which number corresponds to deadweight loss on the graph?
- Price = $1000Quantity = Hundreds per monthOld equilibrium is 7, with a quantity of 5.New equilibrium is 9, with a quantity of 7. Total revenue is 3.5m(old) to 6.3m(new)How would I go about calculating the area for each producer surplus?Economics A market faces the following demand curve: Q = 10 - 1/5P, and a cost function: TC = 25Q^2 - 250Q + 200. a) Calculate the price and quantity that maximize profits if the company operates as a monopolist. Calculate the total profit. b) If the government removes entry barriers and the market becomes perfectly competitive, calculate the price, quantity, and profit of the company. c) GRAPH and mark the changes in consumer surplus, producer surplus, and market efficiency. PLEASE I NEED THE GRAPH. AND ALSO RESPOND IN ORDER PLEASE, STAY WHICH IS A WHICH B AND WHICH IS CA) Some industries have found that the best way to bring their product to market is via a two sided market, where advertisers form the other side of the market. Why will there still be a deadweight loss in this kind of market, and what ways could the firms in the industry behave to reduce the deadweight loss?B) Show with a diagram why first degree price discrimination eliminates the deadweight loss in general.C) What three conditions have to be satisfied before a company can engage in price discrimination