ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 3: The situation facing by firm “Smart”, a producer of running shoes, is shown in the following figure.
Figure attached and can see in end
- What quantity does Smart Shoes produce?
Answer:
2. What is the
Answer:
3. What is Smart’s economic
Answer:
4. Why MR curve is below to demand curve?
Answer:
Question 4: In the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in question 3.
a.) What happens to the number of firms producing running shoes in the long run?
Answer:
b.) What happens to the price of running shoes in the long run?
Answer:
c.) What happens to the quantity of running shoes produced by Smart in the long run?
Answer:
d.) What happens to the quantity of running shoes in the entire market in the long run?
Answer:
e. ) Does Smart shoes have excess capacity in the long run?
Answer:
f.) Why, if Smart firm shoes has excess capacity in the long run, doesn’t the firm decrease its capacity?
Answer:
G.) What is the relationship between Smart Shoes’ price and marginal cost?
Answer:
Transcribed Image Text:호100
MC
ATC
80
60
40
20
MR
50
100
150
200
Quantity (pairs of running shoes per week)
Price and cost (dollars per pair)
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