Would the typical firms demand curve be price inelastic

Assignment Help Business Economics
Reference no: EM13838049

Assume that the skateboard industry is monopolistically competitive.

Assume that skateboard manufacturers are earning short-run economic profits. Draw a correctly labeled graph for a typical firm in the industry and show each of the following:

-The profit maximizing output and price.

-The area representing economic profit.

At the profit maximizing price you identified in part a, would the typical firm’s demand curve be price inelastic? Explain

Given the information in part a, what will happen to the industry in the long run? Explain.

Using a new, correctly labeled graph, show the profit maximizing output and price for the typical firm in the long run.

Does the typical firm produce an output that minimizes average total cost in the long run?

In long-run equilibrium, does the typical firm produce the allocatively efficient level of output? Explain.

Reference no: EM13838049

The average corn price received by farmers

The average corn price received by farmers in 1950 was $1.52 and in 2014 it was $4.11. The Consumer Price. Index (CPI) with a base period of 1982 through 1984 were 24.1 and 23

Spread throughout your organization as rapidly as possible

Imagine that you have critical information which must be spread throughout your organization as rapidly as possible, by word of mouth. If you have to choose exactly one of the

Calculate the equilibrium price level

Suppose that initially the money supply is 2 trillion the price level equals 2 the real gdp is 4 trillion in base year dollars and income velocity of money is 4 . Then suppose

The income elasticity of demand for houses

As income levels rose moderately last year in the San Jose area, it was observed by local realtors that housing sales increased substantially. It is clear from this informatio

Underemployment and excessive current account deficit

U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal an

What is the number of unemployed

The population of Ectenia is 100 people: 40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so di

Two firms conspire to charge a monopoly price

Ney Inc. and ARN Parts are the only two producers of bulldozer bucket teeth. The owners of the two firms conspire to charge a monopoly price, with each firm serving half the m

Annually owing to the aircraft’s fuel efficiency

An airline is considering the purchase of an Airbus A-320neo which offers improved fuel efficiency over the previous generation of narrow-body aircraft. The finance department


Write a Review

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