Draw a corresponding graph for the individual firm

Assignment Help Business Economics
Reference no: EM131395706

Independent trucking is an industry that can be considered perfectly competitive. Draw a graph showing market supply, market demand, and equilibrium price and quantity. Draw a corresponding graph for the individual firm/trucker using the market equilibrium price and marginal cost curve. If you line up the two graphs horizontally, the equilibrium price should be the same on both graphs.

Now suppose that GDP increases as U.S. manufacturers produce more output. What impact will this have on the independent trucking industry in the short run, in terms of the market price, output of an individual firm, and market equilibrium quantity? Explain your reasoning. What impact will the increase in manufacturing output have in the long run? Show graphically and explain your reasoning.

*Please use the Module on Perfect Competition to help you to adequately respond to this discussion. There is no guessing about the graphs. Use the module to derive your response.

Reference no: EM131395706

Questions Cloud

Explain the key reasons : Explain the key reasons why you classified the company as a monopoly, and state how the company operates relative to at least two (2) characteristics of that particular market.
Discuss anticipated barriers to implementation : Introduce your idea and identify the context of how your HIT idea will be used.Discuss the or etical support for your idea.Identify agoalforyourideaandthree(3)objectives.Detail strategies you will take to implement your idea. Discuss anticipated barr..
Can we declare a non-reference function argument const : Can we declare a non-reference function argument const (e.g., void f(const int);)? What might that mean? Why might we want to do that? Why don't people do that often? Try it; write a couple of small programs to see what works.
Discuss your reaction to the public service announcement : From the e-Activity, discuss your reaction to the public service announcement (PSA) in relation to the marketing of junk food to children, with a focus on why this PSA is appropriate or inappropriate. Explain your rationale.
Draw a corresponding graph for the individual firm : Independent trucking is an industry that can be considered perfectly competitive. Draw a graph showing market supply, market demand, and equilibrium price and quantity. Draw a corresponding graph for the individual firm/trucker using the market eq..
Analyze the inclusions and exclusions of gross income : Conduct basic tax research and tax planning on individual federal taxation issues - Determine how to minimize individual income tax within specific risk and legal parameters.
List two economically important activities not captured : List two economically important activities not captured in GDP. How can externalities cause increases in GDP to not adequately reflect increases in wellbeing?
Describe the key characteristics of a stakeholder : Describe key characteristics of a stakeholder and determine all the stakeholders within the PharmaCARE scenario. Analyze human rights issues presented by PharmaCARE's treatment of Colberia's indigenous population versus that of its executives.
Suppose that marr utility function for wegmans : Suppose that Marr's utility function for Wegmans' ice cream (W) and Tops' ice cream (T) is U= W+T. The price of Wegmans' ice cream is $5 and the price of Tops' ice cream is $4.

Reviews

Write a Review

Business Economics Questions & Answers

  Manager of a clothing firm

A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.

  Given a firms revenue and cost functions

Given a firm’s revenue and cost functions: Construct a profit function, determine the level of Q that maximizes profits, and prove that it is a maximum by invoking the second-derivative test

  Economies of scale may arise from

Economies of scale may arise from all but one of the following. Which one is it?

  Q1 should citizens of the united states reduce their

q1. should citizens of the united states reduce their workweek in order to increase productivity and the standard of

  The slope of the total product curve measures

The slope of the total product curve measures. The Law of Diminishing Returns to a variable input (such as labor) assumes that. The ratio of total productivity to the total quantity of a variable input being used in production is

  Use to be elected mayor of a university town

One strategy I might use to be elected mayor of a university town is to place a binding price ceiling on rent for student apartments. What will happen if I get elected and am able to pass such a law?

  How can bis corporation validate model

How can BIS Corporation validate model. What is impact of aggregating customers and products on model accuracy.

  How much revenue would they raise

If we open up the market to free trade so that the world price dominates, what will be the quantity imported? Suppose the government placed a tariff of $10 per unit imported on this good. How much revenue would they raise?

  Change in the price has on the change in the quantity

Assume the elasticity of demand (Ed) at a price of $11 is 3.5, while the Ed at a price of $6 is equal to 1, while the Ed of a price of $3 is = .50. Explain/interpret what each of those answers means. Be thorough and be sure to discuss the impact that..

  Described here determine the type of unemployment

For each situation described here determine the type of unemployment: Steelworkers losing their jobs due to decreased demand for steel. A college graduate waiting to accept a job that allows her to utilize her level of education

  Illustrate the effect of captial formation by production

Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.

  Identify dilemmas that threaten the future integrity

Identify dilemmas that threaten the future integrity of the U.S. healthcare system. Discuss whether or not there is a need for healthcare reform

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