On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. 100 90 10 70 PRICE (Dollars per lamp) 8 8 8 8 60 50 20 10 D 0 Demand 70 140 210 280 350 420 540 630 700 QUANTITY (Thousands of lamps) 9 industry's Short-Run Supply + Equilibrium

Assume that the cost data in the following table are for a purely competitive producer: Average Average Average Total Variable Marginal Cost Total Fixed Product Cost Cost Cost 1 $60.00 $45.00 $105.00 $ 45.00 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 12.00 37.00 49.00 35.00 6. 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 7.50 40.63 48.13 55.00 9. 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $57.00 (i) Will this firm produce in the short run? (Click to select) V (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? |(Click to select V output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? |(Click to select v per unit = $ b.…

Q27

The following graph shows the market for annual tortilla chip consumption, which is initially in long-run equilibrium at point D. After the change in tastes and the rightward shift in demand, the market moves to point in the short run and then to point in the long run. On the following graph, use the purple line (diamond symbol) to plot the long-run market supply curve for tortilla chips, making sure that it goes through two of the points A, B, C, or D. PRICE (Dollars per bag 10 9 8 2 1 D 0 1 True B D₁ O False 23 C S 10²4 NO 2 3 4 5 7 8 QUANTITY (Milions of bags per year) According to the graph, the tortilla chip market is an example of 10 Long-Run Supply True or False: The average cost at the cost-minimizing level of output is lower for the new marginal firm than it was for the marginal firm before the change in demand. industry.

Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC) and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Observe the Short - Run Loss information illustrated in the graph to the right. With respect to Price (P*"), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P What would happen if this were to continue in the long run? Is there a Shut Down point? ** ? Notice that MR = P

This problem continues from the previous one. On the graph the supply in the Rest of the World has shifted from Sstart to S2 and the market in the Rest of the World has moved to a new short run equilibrium at B. The price of Good A is P1 in the U.S. and P2 in the Rest of the World. Which answer choices are correct from the image bellow?

Consider the perfectly competitive spice market. At the equilibrium price, the elasticity of market supply is 2.65 and the elasticity of demand is 0.40. Spice is a normal good. An increase in incomes cause the market PRICE of spices to rise by 3%. What is the percentage change in market QUANTITY? Notes: Enter a number only, do not include the % sign. If it decreases, include a negative sign before your number. For example, if it is a 15.675% decrease, enter -15.68 not -0.15. If quantity decreases include a negative sign.

Operation management

Farmer Johnson producers Eggs in a perfectly competitive egg market. The short run cost curves are displayed below. $4.00 MC $3.50 ATC AVC $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0 20 40 60 80 100 120 140 160 Dozens of Eggs Price of Eggs

qD = 100 – 0.5p,  qS = 2p – 20 What is the price elasticity of supply? Is the situation modeled here more likely to be reflecting a short- or long-run equilibrium? Why?