1a. Make 2 graphs of a firm and a market, depicting perfect competition. Draw them side...

1a. Make 2 graphs of a firm and a market, depicting perfect competition. Draw them side by side.

1b. Complete the cost structure info for the typical firm, (average total cost, marginal cost, etc) and on the market graph draw a market equilibrium that results in a market price (pm) which causes the typical firm to make profit.

1c. Add in and label the demand curve (df) for the typical firm (given (a)).

1d. Identify the quantity the typical firm will produce with a qf (given (b)).

1e. Given all that is above, show the size of the profit made by the typical firm when it produces quantity (qf) at price (pf). Shade in the profit rectangle.

1f. Show what the market picture looks like after all the long run adjustments are complete, given our nice assumptions.

Expert Solution

Rahul Sunny answered 2 years ago

Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make...

Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity. a. Start with a graph depicting market equilibrium for the monopolistic market b. Modify the graph to demonstrate that the price at the profit maximizing level of output is above the average cost curve. c. Is the firm making a profit or loss? d. Will the firm decide to continue to produce in the short-run...

Draw and label a graph depicting a monopolistic market from the perspective of a single firm....

Draw and label a graph depicting a monopolistic market from the perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity . Start with a graph depicting market equilibrium for the monopolistic market . Modify the graph to demonstrate that the price at the profit maximizing level of output is above the average variable cost curve, but below the average cost curve . Is the firm making a profit or loss ? Will the firm...

Draw two graphs side-by-side that show the market equilibrium price for soy beans as $3 per...

Draw two graphs side-by-side that show the market equilibrium price for soy beans as $3 per pound. The second graph is for Sally the soy bean farmer whose profit maximizing output is 80 pounds of soybeans. Show on your graph Sally making a profit of $140 at the market price of $3. Label all curves you draw and clearly indicate the profit region. 1. What effect will these long run changes have on either the supply or demand curve in...

Discussion question #1 – Draw two graphs side-by-side that show the market equilibrium price for soy...

Discussion question #1 – Draw two graphs side-by-side that show the market equilibrium price for soy beans as $3 per pound. The second graph is for Sally the soy bean farmer whose profit maximizing output is 80 pounds of soybeans. Show on your graph Sally making a profit of $140 at the market price of $3. Label all curves you draw and clearly indicate the profit region. 1. Is the above scenario a short-run or long-run equilibrium? 2. If it...

(b) Draw a diagram that shows a firm under perfect competition making a profit in the...

(b) Draw a diagram that shows a firm under perfect competition making a profit in the short run. How is price determined in this case? (c) Draw a diagram to illustrate the case of perfect competition where there is a negative production externality. Show how, if the production externality is ignored, output will differ compared to the alternative where society’s needs are taken into account. Explain briefly how a tax could be relevant in achieving the social optimum (a) Sketch...

1. Draw and label a graph depicting a monopolistic market from perspective of a single firm....

1. Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity (10 points total). a. Start with a graph depicting market equilibrium for the monopolistic market (5 points possible). b. Modify the graph to demonstrate that the price at the profit maximizing level of output is below the average variable cost curve (5 points possible). c. a. Is the firm making a profit or loss?...

In the space below you will draw two graphs, side by side. The graph on the...

In the space below you will draw two graphs, side by side. The graph on the left will show the production possibilities frontier (PPF) for the U.S. and the graph on the right will show the PPF for Brazil. Assume that each of these countries produces only two goods: Jets and helicopters. For both countries you will show the quantity of jets produced on the vertical axis and the quantity of helicopters produced on the horizontal axis. Draw a straight-line...

There are four types of market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. “Perfect competition...

There are four types of market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. “Perfect competition describes a market structure, where a large number of small firms compete against each other” (Zeder, 2016). With a perfect competition market structure firms maximize profits, firms can enter and exit the market as they please, firms sell identical goods, and there are no consumer preferences. “Monopolistic competition refers to a market structure, where a large number of small firms compete against each other”...

2/a/Perfect Competition Firm cost equation: TC = 64 - 4Q + Q2 Market demand: Q =...

2/a/Perfect Competition Firm cost equation: TC = 64 - 4Q + Q2 Market demand: Q = 608 - 4P Solve for how many firms serve the market. Enter as a value. b/Producer surplus is the:? -Area below the market price and above the supply curve -Minimum amount consumers will pay for a good. -Area below the demand curve and above the market price of the good. -Area above the supply curve but below the demand curve. c/If demand is P...

In the space below you will again draw two graphs, side by side. The graph on...

In the space below you will again draw two graphs, side by side. The graph on the left will show the production possibilities frontier (PPF) for Country A and the graph on the right will show the PPF for Country B. Assume that each of these countries produces only two goods: Fish and broccoli. For both countries you will show the quantity (in pounds) of fish produced on the vertical axis and the quantity (pounds) of broccoli produced on the...

Question