Quantity-consumer surplus and producer surplus

Assignment Help Business Economics

Reference no: EM13839796

Suppose a technological advance reduces the cost of making computers.

1-Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.

2-Computers and adding machines are substitutes. Use a supply and demand diagram to show what happens to price, quantity, CS and PS in the market for adding machines. Should adding machine producers be happy or sad about the technological advance in computers?

3-Computers and software are complements. Draw a supply and demand diagram to show what happens to price, quantity, CS and PS in the market for software. Should software producers be happy or sad about the technological advance in computers?

4-Does this help explain why software producer Bill Gates is one of the world’s richest men?

Reference no: EM13839796

Questions Cloud

What is the expected value for the annual savings : Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..

Monopolistic competition implies : As the name monopolistic competition implies, a firms decision in this setting will in certain ways resemble _____________ and in other ways resemble___________?

Two types of customers in a market for sheet metal : There are two types of customers in a market for sheet metal. Let P represent the market price.

Calorie management : Option 1: Calorie Management Develop an algorithm in pseudocode that shows the tasks and subtasks for each program module component that was in the simple algorithm you developed in Week 2

Quantity-consumer surplus and producer surplus : Suppose a technological advance reduces the cost of making computers. Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.

Consider one such ditch-digging firm : Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Now consider one such ditch-digging firm that has five backhoes but employs ..

Compare and contrast the global marketing strategies : Compare and contrast the global marketing strategies of Samsung, Sony and Phillips after listing two or three elements of each company's global marketing strategy.

Number of firms in the new long-run equilibrium : 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. What will happen to the number of..

Write the equation for the companys isocost : Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the books keeping tasks are done ma..

User Account

All Pages