Draw the industry supply and demand curves

Assignment Help Microeconomics
Reference no: EM131892266

Problem

On a separate piece of paper:

1. Draw the following curves for a perfectly competitive individual firm which is earning an economic profit in the short-run: Average total cost Marginal cost Marginal revenue Identify the profit maximizing output quantity and highlight or shade the area that represents the short-run profit.

2. Draw the industry supply and demand curves. Describe and graph what happens to the industry curves in response to the existence of economic profits. Show what happens to quantity and price.

3. Next show what happens to the individual firm's curves based upon the industry reaction in #2.

4. Finally describe how the analysis in #1-3 would be different if instead of this being a perfectly competitive industry, the industry is a monopoly with barriers to entry.

Reference no: EM131892266

Questions Cloud

What are the seven steps in the group forming stage : What are the seven steps in the group forming stage? Choose one step and discuss why it is crucial to this stage.
What is the benefit of making both changes : What is the benefit of making both changes? Are the changes synergistic or competing?
Prepare a presentation that would use at a parent open house : Create a PowerPoint presentation that you would use at a Parent Open House. The presentation should introduce parents to the class/grade.
Depreciated straight-line to zero over its five-year life : The system will be depreciated straight-line to zero over its five-year life.
Draw the industry supply and demand curves : Draw the industry supply and demand curves. Describe and graph what happens to the industry curves in response to the existence of economic profits.
Material requirements planning software : You have a demand for 150 units and you're Material Requirements Planning Software shows the following inventory levels for the various components
What is likely to happen in the court case : Lisa is walking down the street in January when she notices a young man named Denny. Denny looks a little worse for wear, so Lisa offers to buy him lunch.
Identify a higher education issue you have faced in the past : Identify a higher education issue or trend you have faced in the past, or believe you will face at some point in your career.
What are the characteristics of a service process : What are the characteristics of a service process? What are the different types of service processes?

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain briefly what the act is

Explain briefly what the Act is and why is it relevant to health and social care - What was the route from original source to the source you used

  How to restore participating and self-support to free

How to Restore Participating and Self-Support to Free Enterprise

  Estimate the change in the total cost of production

The total cost of a firm is given as C(Q) = 0.2Q3 - 0.5Q2 + 300Q +100 the current level of production is 10 units. If the firm plans to increase its level of production to 10.1 units estimate the change in the total cost of production

  What is the selling price for the product

A manufacturing company leases a machine for $31,812 per year. Each unit produced costs $36 in labor and $72 in materials. To break even, 21,000 units must be sold. What is the selling price for the product

  Analyze balance of payments effects of an import tariff

Using the DD-AA model, analyze the output and balance of payments effects of an import tariff under ?xed exchange rates.

  Can you offer an a priori rationale to this model

Assuming the model is acceptable, estimate the parameters of the model and their standard errors, and obtain R2 and R¯ 2 .

  Describe two ways in which financial intermediaries help

Describe two ways in which financial intermediaries help lower transaction costs in an economy. How can asymmetric information problems lead to a bank panic? How does the free-rider problem aggravate adverse selection problems in financial markets?

  Diminishing marginal productivity begins when the

Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to ?

  Who has more global reach, the company or its competitor

What differentiates the company's products from its competitor's in terms of utility? What differentiates the company's products from its competitor's in terms of packaging, size, and availability?

  How much must she deposit each month

Buy new car finance no more than 10000 of the 26000 estimated prices in two years. Now, deposits 5000 in to a savings account now and will make monthly deposits for the next two years.

  Please answer all 3 questions using apa 6th edition format

please answer all 3 questions using apa 6th edition format style site any paraphrasing or quotes that are used in the

  Would you conclude that the water table was falling

A second expert suggests yearly rainfall also may affect the water table. The first expert agrees but argues that total rainfall fluctuates randomly from year to year. Rainy years would cancel out dry years and would not affect the results of the ..

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