Coal prices moved in sympathy with oil prices

Assignment Help Microeconomics
Reference no: EM13304711

The oil price shock of 1980 sent gasoline prices sharply higher. Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits. Since coal is a homogeneous good and the market is competitive, what happend in this market. (Diagram as appropriate).

Reference no: EM13304711

Questions Cloud

What is the density of the oil : A u-tube with a cross-sectional area of 1.00 cm^2 is open to the atmosphere at both ends. WAter is poured into the tube until the water rises part way along the straight sides, What is the density of the oil
What is the concentration of phenol vapor in the exhaust : A plastic-manufacturing plant emits 1,700 scfm of exhaust at 200oC and 90 kPa. The exhaust (consisting of mostly air) contains 9 ppm phenol vapor (C6H5OH). What is the concentration of phenol vapor in the exhaust in µg/L
Calculate enthalpy that has been added by burning fuel : Exhaust gas from a chemical process flows at a rate of 8,000 actual cubic feet per minute (acfm) from point A at 250°F and 1 atm pressure. It flows through a circular duct to a fan
Compute the energy of the first photon emitted : You are shining ultraviolet light on a gas of an unknown element. You know that an electron starts in a ground state with an energy of -18.20 eV. What is the energy of the first photon emitted
Coal prices moved in sympathy with oil prices : The oil price shock of 1980 sent gasoline prices sharply higher. Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits
Should you still consider purchasing olympic stock in light : Should you still consider purchasing Olympic stock in light of the analysts' argu- ments about why it may be undervalued?
Find the position of the resulting image : A concave mirror has a focal length of 20 cm. What is the position (in cm) of the resulting image
Calculate the excersie value of the firm warrants : Calculate the excersie value of the firm's warrants if the common sells at each of the following prices.
Calculate the work done by gases with constant specific heat : The gases are expanded to 140 kPa with a reversible adiabatic process. Calculate the work done by the gases, assuming they can be approximated by air with constant specific heats.

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate point elasticities at prices

Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?

  Why does the assumption of independence of risks matter

Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms

  Why are these goals in conflict with each other

When an excise tax is imposed on a commodity in order to raise revenue for the government or in in order to raise the consumption of the good, then why are these goals in conflict with each other?

  Reach the target rates for inflation and unemployment

What does the Federal Reserve say about the current state of the economy?

  Determine optimal outputs price and profits.

Assume that the two firms behave as Cournot Duopolists. Explaining the concept of best response or Creaction function, determine the best response function for each firm. Calculate the profit maximizing output of each firm and the market price.

  Determine the benefits and drawbacks of each system

Compare and contrast the free market systems with planned economies. Determine the benefits and drawbacks of each. Analyze the different ways to evaluate economic performance and determine which provides the best assessment of the economy.

  Monopolist''s profit-maximizing level of output

What is the monopolist's profit-maximizing level of output - what price will the profit-maximizing monopolist charge and how much profit will the monopolist make if she maximizes her profit?

  Evaluate the price elasticity of demand

Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals

  Identify a feature-an advantage and a benefit for product

What are the advantages and disadvantages of using prepared, or canned, sales presentation? Give examples of when using a canned presentation might be better than using a less structured presentation.

  How would the job be categorized

Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U= NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the fa..

  Keep money or enter into the market?

You have a 0.35 probaability that you can turn your current $15,000 into $50,000 and a 0.65 probability that fierce competition will drive you to ruin, losing all your money.

  What is the law of supply

What is the law of supply, and what are the factors that cause shifts in supply? What is the law of demand and why is it important?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd