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If price is equal to short-run average variable cost, the firm is at the point known as A- the break even point. B- the profit maximizing point. C- the shutdown point. D- the revenue maximizing point.
Problem 1: Carefully explain and show graphically how each of the following changes would effect the shape of the IS curve:
One might expect firms in a monopolistically competitive market to experience greater swings in the price of their products over the business cycle than those in an oligopoly market. However, fluctu
Explain which of these changes represent a move along the IS curve and/or which represent a shift of the IS curve and why.
Q1. Calculate a marginal cost and an average cost schedule for the firm. Q2. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What
Suppose Firms A and B sells competing products and is deciding whether to undertake advertising campaigns. Each firm will be affected by its competitor decision. The possible outcomes of the game ar
Suppose that inventory growth in the U.S. is unexpectedly high this year. What is likely to happen to output next year, and why? Is the economy currently in equilibrium?
Use the graph to help you algebraically determine the amount of consumer and producer surplus with rent control.
In the short run, a perfectly competitive firm____ earn an economic profit and ____ incur an economic loss
Suppose that the city eliminates its restrictions on video arcades, allowing additional firms to enter the market, "Each additional video arcade will decrease the price of games by $0.02 and increas
The inverse market demand curve is P=140-Q, and the inverse supply curve is P=20+Q. Now suppose a commodity subsidy of $20 is given for each unit of production. In this new distorted market equilibr
Suppose the Minot City Council deemed that the price of housing is too high and institute a price ceiling (rental control) of $450. Discuss the market consequence of the price ceiling: i
Suppose that, from an initial consumer equilibrium position, the price of good X falls while the price of good Y remains the same. Using indifference curve analysis, explain how and why the consumer
The primary difference between a change in supply and a change in the quantity supplied is
What is the firm’s profit-maximizing price-quantity combination now? What are the firm’s profits?
Gus the cab driver rents a cab and pays for gas. In each of the following circumstances, describe the (A) short-run effects & (B) long-run effects on the price and quantity of rides Gus offers.
Illustrate the market for a good by drawing the industry's demand and supply curves. On the graph, identify the equilibrium price and the equilibrium quantity. Be sure to label all axes and curves.
Problem 1: What do economists mean by the term "imperfectly competitive markets"? Problem 2: ow do market prices differ between perfectly and imperfectly competitive markets?
Problem: Assume the commodity market and the money market for an economy are described by the following IS and LM curve.
What is comparative static analysis? Given equilibrium of price and quantity, explain the impact of simultaneous shifts in demand and supply.
How do you figure out the equilibrium price and demand. I cannot find a good explanation of the formula to use.
What are the equilibrium price, combined output, and profits with Bertrand competition?
Suppose that workers in the souvenir manufacturing industry unionize. This shifts the supply of labor in the souvenir manufacturing sector to the left and shifts the supply of labor in the hospitali
Q1. Draw the marginal revenue function for this firm. Q2. What is the profit maximizing price for this firm?
Use the demand function: P = 30 - 2Q And the marginal cost function: MC = 20 to determine P and Q for profit maximization. Then, suppose a government subsidy of $6 per unit is imposed.