Quebec losing hold over maple syrup industry to U.S. competition The Federation of Quebec Maple Syrup Producers tries to limit production and stockpiles a "strategic reserve" to keep the price of syrup high. But Quebec producers are feeling increased competition from Vermont, New York, and Maine, where market share has increased and is expected to increase further in 2017 and 2018. Source: The Globe and Mail, April 6, 2015 If the demand for maple syrup increases, what will happen to price, quantity, and the economic profit of a producer in the short run and in the long run? As a result of an increase in the demand for maple syrup, the price of maple syrup O A. falls B. rises OC. remains the same The graph shows the revenue and cost curves for an individual producer in the maple syrup industry. Draw the marginal revenue curve if the price of maple syrup rises to $40 a gallon. Label it MR₁. Draw a point to show the new equilibrium quantity and equilibrium price. Draw a shape that represents the economic profit or economic loss in the short run. Label it. 60- 55- 50- 45- 40- 35- 30- 25+ 0 Price and cost (dollars per gallon) MC ATC MRO 100 200 300 400 500 600 700 800 900 Quantity (thousands of gallons per year) >>> Draw only the objects specified in the question
Quebec losing hold over maple syrup industry to U.S. competition The Federation of Quebec Maple Syrup Producers tries to limit production and stockpiles a "strategic reserve" to keep the price of syrup high. But Quebec producers are feeling increased competition from Vermont, New York, and Maine, where market share has increased and is expected to increase further in 2017 and 2018. Source: The Globe and Mail, April 6, 2015 If the demand for maple syrup increases, what will happen to price, quantity, and the economic profit of a producer in the short run and in the long run? As a result of an increase in the demand for maple syrup, the price of maple syrup O A. falls B. rises OC. remains the same The graph shows the revenue and cost curves for an individual producer in the maple syrup industry. Draw the marginal revenue curve if the price of maple syrup rises to $40 a gallon. Label it MR₁. Draw a point to show the new equilibrium quantity and equilibrium price. Draw a shape that represents the economic profit or economic loss in the short run. Label it. 60- 55- 50- 45- 40- 35- 30- 25+ 0 Price and cost (dollars per gallon) MC ATC MRO 100 200 300 400 500 600 700 800 900 Quantity (thousands of gallons per year) >>> Draw only the objects specified in the question
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 11PA
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Transcribed Image Text:Quebec losing hold over maple syrup industry to U.S. competition
The Federation of Quebec Maple Syrup Producers tries to limit production and stockpiles a "strategic
reserve" to keep the price of syrup high. But Quebec producers are feeling increased competition
from Vermont, New York, and Maine, where market share has increased and is expected to increase
further in 2017 and 2018.
Source: The Globe and Mail, April 6, 2015
If the demand for maple syrup increases, what will happen to price, quantity, and the economic profit of a
producer in the short run and in the long run?
C
As a result of an increase in the demand for maple syrup, the price of maple syrup
OA. falls
B. rises
OC. remains the same
The graph shows the revenue and cost curves for an individual producer in the maple syrup industry.
Draw the marginal revenue curve if the price of maple syrup rises to $40 a gallon. Label it MR₁.
Draw a point to show the new equilibrium quantity and equilibrium price.
Draw a shape that represents the economic profit or economic loss in the short run. Label it.
60
55-
50-
45+
40-
35-
30+
25+
0
Price and cost (dollars per gallon)
MC
ATC
MRO
Q
100 200 300 400 500 600 700 800 900
Quantity (thousands of gallons per year)
>>> Draw only the objects specified in the question.
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