Paper manufacturer-retailer in perfectly competitive market

Reference no: EM13683599

Plain Paper Co. is a paper manufacturer and retailer in a perfectly competitive market. Initially, Plain Paper Co. is a large firm operating at a profit.

1. Draw the initial operating condition for Plain Paper Co. Label the area of profit, draw and mark the long run perfect competition market equilibrium, and make sure you properly label everything. (Hint: You might assume that the LRAC has a U-shape).

2. List four assumptions that are required for the LRAC curve to have a U-shape. (Hint: There must be two for economies of scale and two for diseconomies of scale).

3. How much profit does Plain Paper Co. earn in the long run equilibrium?

Reference no: EM13683599

Questions Cloud

A car on the same curve traveling 90km/hr : If a curve with a radius of 60m is properly banked for a car traveling 60km/h what must the coefficient of friction before a car on the same curve traveling 90km/hr

Balance depreciation is utilized for material handling lift : For depreciation purposes, a 150% declining balance depreciation is utilized for a material handling lift truck with a cost basis of $21,668 and a salvage value of $6250 at the end of its useful life of five years. If the MACRS depreciation method wi..

Draw a monopolistic competitor in long run equilibrium : Draw a monopolistic competitor in long run equilibrium. On the same graph draw the long run perfect competition equilibrium. Describe why a monopolistically competitive market cannot reach the same equilibrium as perfect competition in the long run.

Is a minimum wage law a price floor or a price ceiling : Recently in Oklahoma, lawmakers have increased the minimum wage to $8.00/hr because the old minimum wage ($5.25/hr) was found to be ineffective. Is a minimum wage law a price floor or a price ceiling? Describe.

Paper manufacturer-retailer in perfectly competitive market : Plain Paper Co. is a paper manufacturer and retailer in a perfectly competitive market. Initially, Plain Paper Co. is a large firm operating at a profit. Draw the initial operating condition for Plain Paper Co. Label the area of profit, draw and mark..

Careers in sales or marketing : Careers in sales or marketing

The embassy suites hotel in mcallen? : 1. Have you seen promotional offers from the Embassy Suites hotel in McAllen?

Choose two product brands and describe : Choose two product brands and describe

Is distribution an important element of the marketing mix : Is distribution an important element of the marketing mix

User Account

All Pages