Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an​ industry?   A. If many firms can supply an input comma then suppliers are like to have the bargaining power to limit a​ firm's profits.   B. If suppliers are price​ takers, then a firm will likely be a price taker with no ability to raise price.   C. If an input is specialized comma then the supplier is likely to have the bargaining power to limit a​ firm's profits.   D. Suppliers cannot affect output​ markets, although an output market with only a few firms is likely to have the bargaining power to limit a​ supplier's profits.   E. If only a few firms can supply an​ input, then markets will likely experience shortages because firms are unable to produce sufficient output.

a. If only two firms exists in the market and they act competitively, find the equilibrium price and quantity, and calculate producer and consumer surplus. If you know firms earn zero profit, what must their fixed cost be?  b. Calculate the elasticities of market supply and market demand at the equilibrium point. Which one is more elastic?

Assume workers in labour market M are qualified to work in an alternative competitive labour market N, and vice versa. What will happen to the wage rate and level of employment in market M if there is an increase in the demand for labour in market N?

Consider the market for Blackberry cell phones. Assume the market is perfectly competitive and at a market-clearing equilibrium. What area represents consumer surplus? 1.) Use the triangle drawing tool to shade in consumer surplus. Label this area 'Consumer Surplus. What area represents producer surplus? 2.) Use the triangle drawing tool to shade in producer surplus. Label this area Producer Surplus". Carefully follow the instructions above, and only draw the required objects. Price of Blackberry cell phones Quantity of Blackberry cell phones

The following graph illustrates the market for small moving trucks in Eugene, OR, during Oregon's fall move-in week. PRICE (Dollars per small truck) 100 Demand 90 Supply 80 70 28 80 50 40 30 20 10 0 0 1 2 3 4 5 8 9 10 QUANTITY (Hundreds of small trucks) Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is Fill in the price and the total, marginal, and average revenue Zoomba eams when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity (Trucks) Price Total Revenue (Dollars per truck) (Dollars) 0 1 2 3 Marginal Revenue (Dollars) Average Revenue (Dollars per truck) 0 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply. Supply curve Average revenue curve Marginal cost curve Marginal revenue curve

Homework (Ch 06) Back to Assignment Attempts Do No Harm / 1 3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. O The future supply of rental housing units increases. O Black markets develop. O The quality of rental housing units falls.

Assume the supply curve of the typical taxi cab driver in Chicago is P = 4 + 2Q. Suppose the market price is P = 12. Assume cab drivers, sellers of taxi services the in Chicago are regulated by a municipal authority. The regulatory authority charges the sellers a “license fee” that must be paid in order to obtain a license to operate a cab. What is the maximum license fee the regulators can charge? Use the concept of the “seller’s surplus” to answer the question.

Only typed answer  Each firm in a competitive market has a cost function of C(q) = q − q 2 + q 3 . The market has an unlimited number of potential firms. The market demand function is Q = 24 − P.   a. Determine the long-run equilibrium price, the quantity per firm, the market quantity, and the number of the firms.   b. How do these values change if a tax of $1 per unit is collected from each firm?   c. How would these values change if instead of a tax the government implements a price floor of 30?

Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0     10               1                 5   2                 3   3                 2   4                 1   5                 2   6                 3   7                 4   8                 5   9                 6   10                 7   11                 8     Assuming that the firm operates in a perfectly competitive market, supply the missing values in the table above. You may use a spreadsheet program to compute the values but must provide a step-by-step…

Question 8 (1 point) Listen Junior's Sporting Goods sells camping equipment and outdoor gear. The company is willing to sell a particular fishing pole for as little as $55. Its main competitor is Sporty Gear, which is willing to sell the fishing pole for as little as $35. The current market price of that type of fishing pole is $75. What is the total producer surplus for the two firms? Your Answer: Answer Question 9 (1 point) Listen Karen can make 1 jackets or 17 ties in one day working at the clothing factory. Joe can make 8 jackets or 32 ties in one day working at the clothing factory. What is Joe's opportunity cost of producing 1 tie? Round your answer to one decimal place. Be sure to enter the correct units for what they are giving up. Your Answer: Answer units