How do you know that the industry is in long-run equilibrium

Assignment Help Macroeconomics
Reference no: EM13907056

1. The following graph shows the cost curves for a perfectly competitive firm. Identity the shutdown point, the breakeven point, and the firm's short-run supply curve.

1150_figr1.png

2. Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium.

(a) How do you know that the industry is in long-run equilibrium?

(b) Suppose that there is an increase in demand for this product. Show and explain the short-run adjustment process for both the firm and the industry.

(c) Show and explain the long-run adjustment process for both the firm and the industry. What will happen to the number of firms in the new long-run equilibrium?

3. The following graph shows a firm in a monopolistically competitive industry.

(a) Show the firm's short-run profit-maximizing quantity and price. Is the firm making a profit?

(b) Carefully explain what will happen in the industry over time, and draw a graph of a monopolistically competitive firm in long-run equilibrium.

2334_figr3.png

Reference no: EM13907056

Questions Cloud

Prepare journal entries for transactions : George Commenced business by opening a bank account for the business and depositing $6000 fo his own money. He also contributed a computer valued at $3000. George bought his wife a gift for their wedding anniversary cost $335 and paid for it using th..
Budgeted sales for the next four months follow : Scora, Inc., is preparing its master budget for the quarter ending March 31.
Living organisms are made of organic and inorganic substance : Living organisms are made of organic and inorganic substances. How can each of these substances be classified based on the complexity of their molecules?
Calculate the break-even point in number of units : Now we are going to include the food and beverage service in our cost structure. The Town and Country charges a flat rate of $500 for the service, plus $15 for each seminar participant. What is the contribution margin (1) stated as a per-unit dollar ..
How do you know that the industry is in long-run equilibrium : Suppose that there is an increase in demand for this product. Show and explain the short-run adjustment process for both the firm and the industry.
What happens if each firm maximizes its market share : Find the Nash equilibrium (equilibria?) of a variant of the example of Cournot's duopoly game that differs from the one in this section. What happens if each firm maximizes its market share?
Cultural tradition south indian cuisine midterm essay : You have to use this three resources. cultural tradition south indian cuisine midterm essay References Cultural India. (n.d.).
Interpret the data and information gathered : To at least 10 people (learners and parents) to gather data, that could, through analysis provide answers Analyse and interpret the data and information gathered; Write a report based on your investigation; and Prepare a presentation to present the..
Quality concerns using a cause-and-effect diagram : quality concerns using a cause-and-effect diagram

Reviews

Write a Review

Macroeconomics Questions & Answers

  What are the pros and corns of a market economy

What are the pros and corns of a market economy in comparison with a command economy.

  Elucidate the academic curriculum and dicuss the challeges

Elucidate the academic curriculum and dicuss the challeges confronted by scholars of the following areas of specialisation.

  Find market price for hydrogen gas and normalize energy

Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline

  The firm should produce a smaller output and sell it at a

A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100,marginal cost equals $40, and average fixed cost equals $10. To maximize profit,the firm should prod..

  Discuss an adjustment process using ad and as analysis

Discuss an adjustment process using AD and AS analysis that will ensure that the economy will return to full employment.

  Advice that help someone to meet their goals

Kimberly has basic living expenses in addition to a student loan.She never knows what her monthly income will be due to the commissions.what advice can you give her to help her meet her goals.

  What would happens to hi-techs profits

What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.

  Assume a nation has been running a significant expansionary

Assume a nation has been running a significant expansionary fiscal policy for many years.

  The marketplace is saturated with modems

The marketplace is saturated with modems, and your sales department has been able to identify only one potential buyer of your modems.

  Describe how you would invest your money

Describe how you would invest your money and provide the rationale behind your chosen investments. Be sure to support your statements with arguments and examples.

  Approx the marketplace demand curve and figure the existing

Approx the marketplace demand curve and figure the existing Price elasticity of demand

  How to find the equation to the isocost line

The firm need a combination of one unit of capital and two units of labor per hour to make ten units of output. The technology is such that an increase in labor has to be accompanied with an increase in capital, and a decrease in labor has to be a..

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