Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3.A, Problem 7SQ
To determine
The area representing the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The table below presents the production quantity, total revenue, and total cost of a company in its
production process.
Using the Excel program, you make a graph that represents the total income and total cost. Determines
the level of economic gain or loss for eadch production level. Identifies the point where the gain is
maximized. Identifies which of the four market structures studied this example belongs to. Explain your
answer in a paragraph of at least five sentences.
Quantities in
production
Total income
Total cost
0.
0.
27.23
1
36
55.69
21
72
81.68
3.
108
105.19
144
123.75
180
141.08
216
155.93
252
174.49
8.
288
198.00
9.
324
226.48
10
360
259.88
396
303.19
11
12
432
371.25
13
468
445.50
504
536.25
14
15
540
605.00
OFocus
5:48 AM
ds
English (United States)
) G ESP
2/23/202
4.
5.
Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increase in demand that results in
positive profits for the firms. Which of the following events are then most likely to occur?
(i)
New firms will enter the market.
In the short run, price will rise; in the long run, price will rise further.
In the long run, all firms will be producing at their efficient scale.
a. (i), (ii) and (iii)
b. (i) and (iii) only
c. (i) and (ii) only
d. (ii) and (iii) only
Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the
same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.
80
72
56
· ཉི་ ཀ་ཇཱ་སྐ་ན་
COSTS (Dollars per pound)
AVC
16
MC-
8
ATC
B
12 16 20 24
28
QUANTITY (Thousands of pounds)
36
The following graph plots the market demand curve for ruthenium.
?
Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can
disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the
purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to
plot the short-run industry supply curve when there are 30 firms.
PRICE (Dollars per pound)
80
72…
Chapter 3 Solutions
Economics For Today
Ch. 3.6 - Prob. 1YTECh. 3.7 - Prob. 1GECh. 3.7 - Prob. 2GECh. 3.7 - Prob. 3GECh. 3.A - Prob. 1SQPCh. 3.A - Prob. 2SQPCh. 3.A - Prob. 3SQPCh. 3.A - Prob. 4SQPCh. 3.A - Prob. 1SQCh. 3.A - Prob. 2SQ
Ch. 3.A - Prob. 3SQCh. 3.A - Prob. 4SQCh. 3.A - Prob. 5SQCh. 3.A - Prob. 6SQCh. 3.A - Prob. 7SQCh. 3.A - Prob. 8SQCh. 3.A - Prob. 9SQCh. 3.A - Prob. 10SQCh. 3 - Prob. 1SQPCh. 3 - Prob. 2SQPCh. 3 - Prob. 3SQPCh. 3 - Prob. 4SQPCh. 3 - Prob. 5SQPCh. 3 - Prob. 6SQPCh. 3 - Prob. 7SQPCh. 3 - Prob. 8SQPCh. 3 - Prob. 9SQPCh. 3 - Prob. 10SQPCh. 3 - Prob. 11SQPCh. 3 - Prob. 12SQPCh. 3 - Prob. 1SQCh. 3 - Prob. 2SQCh. 3 - Prob. 3SQCh. 3 - Prob. 4SQCh. 3 - Prob. 5SQCh. 3 - Prob. 6SQCh. 3 - Prob. 7SQCh. 3 - Prob. 8SQCh. 3 - Prob. 9SQCh. 3 - Prob. 10SQCh. 3 - Prob. 11SQCh. 3 - Prob. 12SQCh. 3 - Prob. 13SQCh. 3 - Prob. 14SQCh. 3 - Prob. 15SQCh. 3 - Prob. 16SQCh. 3 - Prob. 17SQCh. 3 - Prob. 18SQCh. 3 - Prob. 19SQCh. 3 - Prob. 20SQ
Knowledge Booster
Similar questions
- Let’s consider an economy where all firms are favouring remote work to favour physical distancing and avoid the spread of a virus. To achieve these goals all firms receive a subsidy to equip their workers with a laptop. Consider that the market for laptops is in perfect competition and initially at the equilibrium. Explain the impact of the pandemic on the supply, demand, equilibrium on market of computers. Give a graphical representationarrow_forward1. A firm’s production function is , where Ldenotes the size of the workforce. Find the value of MPLin the case when: (a) L=1, (b) L=10, (c) L=100, (d) L=1000 Does the law of diminishing marginal productivity apply to this particular function? 2. Show that the price elasticity of demand is constant for demand functions of the form where A and n are positive constants. 3. The demand and total cost functions of a good arerespectively and a) Find expressions for TR, (profit) , MR, and MC in terms of Q. b) Solve the equation and hence determine the value of Q which maximizes profit. c) Verify that, at the point of maximum profit, MR=MC. 4. The cost of building an office complex, x floors high, in a prime location in Accra is made up of three components: (a) GH¢10 million for the land (b) GH¢1/4 million per floor (c) Specialized costs of GH¢10000x per floor. How many floors should the office complex contain if the average cost per floor is to be minimized? 5. The supply…arrow_forwardIn a competitive market, firms sell homogeneous type of products. а. Т b. Farrow_forward
- Be sure to label the graphs. Suppose in the competitive market for a good known as “Tovars” that there are 5,000 firms. Assuming each firm is at a point where P=ATC. Suddenly, a huge number of entrepreneurs enters the market so the number of firms increases by 1,000. a. Please draw a graph showing the short run effect. Please label the price and quantities initially as P1, q1, Q1 and the short run price and quantities as P2, q2, Q2 b. On the graph in a, please show the long run effect. Please label the long run price and quantities as P3, q3, Q3. Relative to the initial equilibrium (before the entrance of 1,000 firms), What happens to the P? What happens to the q? What happens to the Q?arrow_forwardThe graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third suppi enters the market, holding all else constant. Price per Stuffed Animal (5) 10 9 110 7 6 DA A m 2 Market for Stuffed Animals Firm Firm 2 Market 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 A third firm would mean O market supply increases. O higher prices of stuffed animals. market supply decreases. Firm 1 and Firm 2 would lower output to accommodate the new supplier in order to keep market supply constant.arrow_forward1- Fill the blanket and find the quantity of maximization of the product Input Output MP (units) (units) AP Price Price TFC TVC TC MC TR MR Profit |Input Output 18 XXX XXX 35 100 3. 42 190 44 5arrow_forward
- Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. (?) 100 90 80 70 60 50 40 ATC 30 20 MCO AVC 10 + 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of tons) The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 E 60 Supply (30…arrow_forwardFind a. Optimize the production function Q = 4K² - 2KL + 6L² subject to constraint k+ L = 72 and find the value of Q at the point of optimization b. The demand and supply function of Adofo enterprise are given P(Qa) = (Qu - 5)² and P(Q) = Q² + Q, +3 respectively. i. ii. iii. iv. the equilibrium price and quantity the consumer surplus at the equilibrium point the producer surplus at equilibrium point Represent the equilibrium price, consumer and producer surplus on a diagramarrow_forwardexplain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is rising ?arrow_forward
- 20 percent increase in the quantity demanded. 3 F Question 3 To sell one more unit of output, the seller must make one more and sell it for less than the price at which the last unit sold O the marginal revenue O the cost of the resources used to produce it the same price as the last unit sold 3 pts Question 4arrow_forwardThe price of a good is $50. The market for this good is perfectly competitive. The marginal cost that afirm producing these good faces is MC = 4 + 0.5Q, where Q is the quantity of good produced. Howmany units of the good does this firm produce? Show your mathematical workarrow_forwardConsider the information of Firm C on the attached figure and answer the following: Calculate TVC and Ceteris paribus, if the price falls below_________, Firm C will have to shut down and exit the market Ceteris paribus, Firm C will make a normal profit at the price of________ Firm C achieves an allocative efficient level of output by producing_______ units of output.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning