Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 8, Problem 7P
To determine
Complete the table and answer the subparts.
Introduction: Not required.
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Students have asked these similar questions
The following graph shows the short-run supply curve for pears.
Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pears. (Note: Place the points of the
line either on K and T or on K and C.)
(?)
48
Long-Run Supply
K
Short-Run Supply
2
4
6
8
10
QUANTITY (Thousands of pounds of pears)
PRICE (Dollars per pound)
40
32
24
16
8
0
12
Discuss, thank you
What does the Law of Supply state?
Why do supply and demand curves slope in opposite directions?
How is the elasticity of supply affected by the way a product is produced?
Explain the difference between a total product and a marginal product.
What is the difference between a fixed cost and a variable cost?
Note: use references from published scientific articles
The following graph shows the short-run supply curve for pears.
Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pears. (Note: Place the points of the
line either on N and W or on N and F.)
(?)
48
40
Long-Run Supply
24
N
Short-Run Supply
2
8
10
12
QUANTITY (Thousands of pounds of pears)
PRICE (Dollars per pound)
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- Homework (Ch 05) The following graph shows the long-run supply curve for persimmons. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for persimmons. (Note: Place the points of the line either on K and T or on K and C.) 24 Short-Run Supply 20 16 K O → PRICE (Dollars per pound) 8 4 0 0 Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of persimmons) 12arrow_forward(Figure: Big Tree Organic Farms in the Short Run) Use Figure: Big Tree Organic Farms in the Short Run. Big Tree Organic is a perfectly competitive organic farm in Turlock, California. The farm will shut down in the short run if the price falls below: Price A B G F EN P 0 F. E. G. P. W H J: S: L K: MC ATC AVC B D Quantity (per period) MRarrow_forward(The Short-Run Firm Supply Curve) Use the following datato answer the questions below: a. Calculate the marginal cost and average variable costfor each level of production.b. How much would the firm produce if it could sell itsproduct for $5? For $7? For $10?c. Explain your answers.d. Assuming that its fixed cost is $3, calculate the firm’sprofit at each of the production levels determined inpart (b).arrow_forward
- HW#4 (Costs of Production, Competitive Markets) Attempts: Keep the Highest: /6 20. Problems and Applications Q3 Consider total cost and total revenue, given in the fllowing table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Total Cost Quantity (Dollars) Marginal Cost Marginal Revenue (Dollars) Total Revenue Profit (Dollars) (Dollars) (Dollars) 12 3 11 18 4 15 24 20 30 26 36 35 42 In order to maximize profit, how many units should the firm produce? Check all that apply. 4 6. In the previous table, enter marginal revenue and marginal cost for each quantity.arrow_forwardFigure: Cost Curves for Corn Producers Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce _____ of corn and earn an economic _____ equal to _____. 3 bushels; profit; loss, -$15 2 bushels; profit; $0 4 bushels; profit; just less than $80 per bushel 2 bushels; loss; just more than $80 per bushelarrow_forward1 Hypothetical Case 1 The following equations describe the long-run situation for prices and costs, where the numbers indicate the amounts of labor and capital needed to produce a unit of wheat and cloth. W is the wage rate/hour and R is the rental rate/hour. Price of wheat = 1 W + 2 R Price of cloth = 2 W + 1 R In autarky, the price of wheat is 5 and the price of cloth is 4. As trade opens up wheat price rises from 5 to 6. Cloth price remains at 4. Consider Hypothetical Case 1 above. After trade opens up, how many units of wheat can a worker buy with one hour of labor?arrow_forward
- 7. The long-run supply curve in different cost industries The following graph shows the market for tortilla chip. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a leftward shift in demand. On the following graph, shift the demand or supply curve to reflect this change in tastes. Then use the grey point (star symbol) to indicate the new short-run equilibrium. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per bag) 10 00 in 2 4 In the short run, firms will Short-run Supply Demand QUANTITY (Thousands of bags) 8 10 Demand Short-run Supply Short-run Equilibrium Long-run Equilibrium Long-run Supply ? . In the long run, the supply curve will On the previous graph, show the shift in the supply curve and then use the purple point (diamond symbol) to indicate the resulting…arrow_forwardBehind the Supply Curve: Inputs and Costs Work It Out: Question 2 of 5 The accompanying table shows a car manufacturer's total cost of producing cars. Calculate the variable cost (VC) for the following quantities. VC for a quantity of 0: $ VC for a quantity of 5: $ VC for a quantity of 9: $ 0 Quantity of cars Total Cost $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000 800,000 920,000 1,100,00 0 1 2 3 4 5 6 7 8 9 10arrow_forwardPrice and cost (dollars) Use the following information to answer the next 4 questions: The graph below shows cost curves for a perfectly competitive firm. Suppose that the market price is $2.60. 2.60 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output SMC ATC AVC Question A firm producing 800 units of output is earning the maximum amount of profit, $880. is earning the maximum amount of profit, $2,080. should instead produce 500 units of output in order to earn profits of $500. should instead produce 1100 units of output in order to earn profits of $1,100.arrow_forward
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