Question
In: Economics
4. Draw a two-panel model (graph) for a firm producing and selling good X in a...
4. Draw a two-panel model (graph) for a firm producing and selling good X in a purely competitive market. In the first panel show the market for good X; in the second panel show the firm in long run equilibrium.
· Show the effects of an increase in demand for good X in this market. Show the effects of a decrease in demand for good X in this market. What conclusions can be drawn from this model?
· Under what condition will a competitive firm earning a loss (a negative profit) continue to operate in the short run? Under what condition will the same firm shut down? Demonstrate these conditions graphically.
?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Draw the aggregate demand and aggregate supply graphs in a three-panel model: In the first graph,...
Draw the aggregate demand and aggregate supply graphs in a
three-panel model: In the first graph, show aggregate demand on the
graph and aggregate supply in the immediate short run. In the
second graph, again show aggregate demand, but this time show
aggregate supply in the short run. Finally, in the last panel, show
aggregate demand and aggregate supply in the long-run. Be sure to
label each axis and each curve in each graph
Discuss the following by referring to...
Draw the AA/DD model on a graph. Show on the graph the impact of a permanent...
Draw the AA/DD model on a graph. Show on the graph the impact
of a permanent increase in money supply. What is the impact on the
following variables:
Short-run output
Long-run output
Short-run interest rates
Long-run interest rates
Short-run exchange rates
Long-run exchange rates
Short-run prices
Long-run prices
Draw the AA/DD model on a graph. Show on the graph the impact of a permanent...
Draw the AA/DD model on a graph. Show on the graph the impact of
a permanent increase in money supply. What is the impact on the
following variables: a. Short-run output b. Long-run output c.
Short-run interest rates d. Long-run interest rates e. Short-run
exchange rates f. Long-run exchange rates g. Short-run prices h.
Long-run prices.
A. A consumer has $360. Good X costs $4 each. Good Y costs $8 each. Draw...
A. A consumer has $360. Good X costs $4 each.
Good Y costs $8 each. Draw the budget line. Label it “budget line
A.” Preferences are perfect complements: utility = min{X,Y}. Both X
and Y are normal goods. Numerically solve the consumer’s budget
choice. Label it on the diagram, including the indifference curve,
and all solved numbers.
B. A consumer has $400. Good X costs $6 each.
Good Y costs $7 each. Draw a new budget line, on a new...
A. A consumer has $360. Good X costs $4 each. Good Y costs $8 each. Draw...
A. A consumer has $360. Good X costs $4 each.
Good Y costs $8 each. Draw the budget line. Label it “budget line
A.” Preferences are perfect complements: utility = min{X,Y}. Both X
and Y are normal goods. Numerically solve the consumer’s budget
choice. Label it on the diagram, including the indifference curve,
and all solved numbers.
B. A consumer has
$400. Good X costs $6 each. Good Y costs $7 each. Draw a new budget
line, on a new...
How to find the efficient Scale of a firm producing a good?
How to find the efficient Scale of a firm producing a good?
34. Consider a firm producing and selling joint products produced in variable proportions in two competitive...
34. Consider a firm producing and selling joint products
produced in variable proportions in two competitive markets. For a
given level of TC (or a level TR), the profit-maximizing
combination of QA and QB requires _______, where PA = price of A,
PB = price of B, CA = cost of A and CB = cost of B. MC of A and B
can be used for CA and CB.
A. P_A/C_A =P_B/C_B B. P_A/C_B =P_B/C_A C. P_A/C_A -P_B/C_B =1....
Neatly draw and label both the market and representative firm graph for a firm in a...
Neatly draw and label both the market and representative firm graph
for a firm in a perfect competition which is earning an economic
loss in the short run and should choose to operate at a loss. What
is going to happen in the long run? How will this affect the
graph?
1. Draw a graph of the Solow growth model showing an economy that is in a...
1. Draw a graph of the Solow growth model showing an economy
that is in a steady state that has less capital than the
golden-rule steady state. Be sure to label both axes correctly as
well as the three relevant curves that should appear in the
graph.
How did you determine graphically where the golden-rule
steady-state should be?
What would have to happen in this economy for it to reach its
golden-rule steady-state?
A firm is producing 1,000 units of a good and the total cost of production is...
A firm is producing 1,000 units of a good and the total cost of
production is $4 million. $1
million in costs go to fixed factors like buildings, insurances,
and operating licenses. The
remaining $3 million goes to workers and suppliers.
a) Using the numbers provided, calculate the average total cost,
the average fixed cost, and
the average variable cost?
b) Explain what is meant by marginal cost?
c) If the marginal cost for the firm of producing 1,000 units...
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