Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 6, Problem 13P
(a)
To determine
(b)
To determine
Output firm will supply at market
(c)
To determine
Long-run price
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Microeconomics, Student Value Edition (2nd Edition)
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- Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. Demand will............... b. Profits for chocolate producers in the short run will.............. c. Chocolate producers will .............the market. d. The long-run supply curve will ..................... shift left; increase; enter; shift right shift right; increase; exit; not change shift left; decrease; exit; not change shift right; decrease; exit; shift leftarrow_forwardThe market for paperback detective novels is perfectly competitive. Market Demand is given by Q=450-6P. Market Supply is given by Q=4P-13. Suppose 21 units are bought to the market. Consider the Marginal Cost of production for these 21 units. What is the maximum Marginal Cost of production of these 21 units? Enter a number only, do not include the $ sign. Hint: 21 doesn't have to be the market quantity.arrow_forwardSuppose you are a seller in a perfectly competitive market, and you are not happy with the existing selling price of your product, would you raise the price even by a few centavos? explain your answerarrow_forward
- Consider a perfectly newspaper market with identical firms, each with the usual shaped cost curves. (1) The government imposes a (permanent) $2 per-newspaper subsidy on the market. What is the impact of the subsidy on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts. (2) If demand permanently decreases, what is the impact on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts.arrow_forwardDemand for microprocessors is given by P = 35 – 5Q , where Q is the quantity of microchips (in millions). The typical firm’s total cost of producing a chip is Ci = 5qi, where qi is the output of firm i. a) Under perfect competition, what are the equilibrium price and quantity?arrow_forwardA firm’s marginal cost is MC(q)=10+6q. For which prices does the firm shut down? Find a formula for the quantity supplied q in terms of the market price, p.arrow_forward
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