Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 12, Problem 16APA
To determine
Why did the price of corn fell in 2016 and illustrate the short-run effect on an individual farmer's economic profit.
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Students have asked these similar questions
explain your answers in detail and use graphs
whenever appropriate:
The market for rental cars is very competitive.
How would the following developments affect
the quantity of car rentals that a typical rental
car company wants to supply in the short run?
a. With the easing of fears about Covid 19,
people are more excited to travel than before.
b. Local governments reduce the yearly fee
that rental car companies have to pay for their
facilities. Note, these fees do not vary with how
many cars the company rents.
c. Rental car companies have to pay higher
wages for their workers.
Suppose that initially the market for rental cars
is in long-run equilibrium.
a. What does the fall in the yearly fee rental
car companies have to pay for their facilities
do to the profits of a typical rental car
company in the short run?
b. What will happen to the equilibrium price
and quantity of rental cars in the long run?
Why? What will happen to the profits of a
typical rental car company in the long run?
Suppose Becky runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20
per shirt.
The following graph shows Becky's total cost curve.
Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Becky
produces, including zero shirts.
200
175
Total Revenue
150
Total Cost
125
Profit
100
75
-25
2.
3
4
6.
8.
QUANTITY (Shirts)
50
25
TOTAL COST AND REVENUE (Dollars)
Assume that the market for pasta is in long-run equilibrium and that the pasta industry is a constant-cost industry. Explain with a graph and words what will happen to the price and quantity in the market when the demand for pasta decreases.
Chapter 12 Solutions
Macroeconomics
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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