Question 20 options: --------------It is an attempt to create barriers to entry by gaining control over the source of material inputs into the down stream stage of a production process.

1. 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. Efficient use of housing space results. The quality of rental housing units fails. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Black markets develop. J

C24) The cost of producing refrigerators has fallen over the past decade. Let's consider some implications of this fact. a. Draw a supply-and-demand diagram to show the effect of falling production costs on the price and quantity of refrigerators sold. b. Suppose the supply of refrigerators is very elastic. Who benefits most from falling production costs - consumers or producers of these refrigerators? Please draw an extreme case, i.e. perfectly elastic supply.

QUESTION 1 A firm produces and sells ballI bearings in two distinct markets, each of which is completely sealed off from the other. The demand curve for the firm's output in the first market is P1=555-8Q1, where P1 is the price of the product and Q1 is the amount sold in the first market. The demand curve for the firm's output in the second market is P2=235-2Q2, where P2 is the price of the product and Q2 is the amount sold in the second market. The firm's marginal cost curve is 5+Q, where Q is the firm's entire output (destined for either market). The firm should sell units in the first market at the price of and units in the second market at the price of to maximize its profit.

5. Elasticity of labor supply is defined as: Percentage change in quantity of labor supplied Percentage change in wage rate Assume that in Illinois 1,000,000 hours of labor are supplied at the current minimum wage. Then the minimum wage rises 20%, from $8.25/hr. to $9.90/hr. How many more hours of labor will workers be willing to supply at the new minimum wage if elasticity of labor supply is 0,55?

4. What do you think would be the effect on the equilibrium price and quantity of marijuana as a result of its consumption being legalized? Give reasons for your answer.

1. Characteristics of competitive markets The model of competitive markets relies on these three core assumptions: 1. There must be many buyers and sellers-a few players can't dominate the market. 2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match…

(Don't copy the answer)The current conflict in Ukraine has prompted talk of a possible embargo on gas produced in Russia. Using diagrams, explain the likely effect that such an embargo would have on a) the market price for gas. b) the price charged to consumers by an energy company who purchases gas in the open market and provides it to UK consumers, focusing on the case where the energy market in UK is perfectly competitive. How will consumer and producer surplus be affected? c) the price charged to consumers by a monopoly energy company who purchases gas in the open market and provides it to UK consumers (hence, focusing on the case where the energy market in UK is composed of a single firm). d) Some commentators have proposed that the UK government should charge a per-unit tax to energy companies and redistribute the tax income to the British public to offset some of the negative effects of the current energy shock. What do you think would be the effect of this scheme in the case of…

1) There are 1000 pear producers that have identical cost functions,  where q is the number of crates of pear produced. The producers operate in a perfectly competitive market. The supply curve of each producer is _______ The total supply curve for the market is _______ At a price of 100, the elasticity of supply for the market is _______ , meaning that supply is _______. (see image for answer options)   2) A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2 To maximize its profit, the firm chooses to produce q=___________. The profit of this firm is $_____________

2. The graph below shows the demand and supply of baseball caps with inflexible prices. Suppose that 100 baseball caps is the optimal and most profitable level of production for the firm. Price (S) 20 10 150 Baseball A. Determine the equilibrium price and quantity at the medium level of demand (DM) B. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly lowers demand (DL). C. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly increases demand (DH). D. What can you conclude will happen to prices and output when this model is shocked by changes in demand?