Here is an industry in long run equilibrium. What is profit in this industry when demand is at D1? COST 100 80 60 Cost for ONE Firm in Competitive Industry MC 800 1000 Find Profit: ATC Q P Market in Industry D1 100,000 80,000 SSHORT_RUN DO SLONG RUN Q

Here is an industry in long run equilibrium. What is profit in this industry when demand is at D1? COST 100 80 60 Cost for ONE Firm in Competitive Industry MC 800 1000 Find Profit: ATC Q P Market in Industry D1 100,000 80,000 SSHORT_RUN DO SLONG RUN Q

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 36CTQ: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

See similar textbooks

Related questions

Q: 1. Imagine that you've just landed a job as a market analyst and your initial assignment is to…

A: Duopoly market refers to the type of market where only two producers or sellers exist in the entire…

Q: The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists…

A: The problem is related to the classification of the Pennsylvania Turnpike, a tolled freeway, based…

Q: Px= ¢18; Py= ¢20; I=¢400; A=¢20; PL=¢10; Tx=¢30 and Suppose a lump sum tax of ¢4 is imposed by the…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Suppose that every driver faces a 3% probability of an automobile accident every year. An accident…

A: If the cost of the insurance is equivalent to the predict payments the insurance company will be…

Q: Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is…

A: This can be defined as a concept that shows the total amount of demand for the commodities and…

Q: Answer the given question with a proper explanation and step-by-step solution. The sale of goods…

A: Market:It is a place where there is buying and selling of goods and services. Some buyers and…

Q: 1. Consider the following equations for a small open economy for both the goods and money markets.…

A: The IS-LM model is an economic framework that represents the interaction between the real and…

Q: Carissa buys a pair of shoes that was priced $600. There is a 9% sales tax in her state.…

A: In the given question:Price of pair of shoes is $600Sales tax in her state is 9%Discount is 35%We…

Q: A new partner contributes accounts receivable to a partnership, which appears in the ledger of his…

A: Since the provided question involves the aspect of monetary transaction with Business, it has been…

Q: functions as an automatic fiscal stabilizer because it increases when the economy is in a recession…

A: Fiscal stabilizers are government policies that are designed to automatically offset fluctuations in…

Q: The supply of labor is determined by the: marginal product of labor. opportunity cost of…

A: The problem here is to understand what factors determine the supply of labor in an economy. The…

Q: Crowding out occurs when an increase in government spending leads to declines in consumption,…

A: Economics refers to the study of scarcity and its implications for the use of resources, production…

Q: The graphs below illustrate the market for a product on which an excise tax has been imposed by…

A: Excise taxes are indirect taxes levied by the government on the sale of a particular good or…

Q: Which of the following is a characteristic of monopolistic competition? Group of answer choices Same…

A: Market:It is a place where there is buying and selling of goods and services. Some buyers and…

Q: Question 6 Listen Consider the market for pilots. What is likely to happen to the equilibrium wage…

A: A demand curve shows the relationship between the price of a good and the services and the demand…

Q: a. How many workers should the firm hire? workers b. What wage will the firm pay? $ c. Suppose…

A: The monopsony market represents the opposite of the monopoly market where there is only a single…

Q: If buyers' preferences change so that they are willing to buy more widgets at each hypothetical…

A: The scenario you describe implies a shift in customer preferences, which leads to an increase in the…

Q: 2. Cournot competition Consider a town in which only two residents, Gilberto and Juanita, own wells…

A: Cournot competition is a type of oligopoly, where firms choose their quantity simultaneously.In…

Q: 3. The effect of negative externalities on the optimal quantity of consumption Consider the market…

A: Externalities occur when there is an indirect impact on a party that is not directly related to the…

Q: The table sets out the data for an economy when the government's budget is balanced. If the…

A: The Ricardo-Barro effect and crowding out are both economic concepts that pertain to the…

Q: This economy has a short-term equilibrium at point A. In response to gradually falling inflation,…

A: The equilibrium occurs when the demand is equal to supply. The economy might fall below the full…

Q: Total revenue at the profit-maximizing level of output is OA $1,200 OB. $2.500 OC. $4,800. OD.…

A: The perfectly competitive market refers to a market where a large number of buyers and sellers…

Q: If the price level is 100 for 2019 and the price level is 108.5 in 2020, a nominal GDP in 2020 of…

A: Nominal GDP : Nominal Gross Domestic Product is the total market value of all goods and services…

Q: Tax cuts on savings, capital gains and personal income are known as tax cuts.

A: Tax cuts on savings, capital gains, and personal income are known as supply-side tax cuts. "supply…

Q: Suppose that currency in circulation is $800 billion, the amount of checkable deposits is $1200…

A: The objective of the question is to understand the impact of an open market purchase by the central…

Q: Q 4: Answer the questions below using the following Table (and Figures if needed): c) As…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: Answer the questions below for the economy of Motak using the graph below. 1000 900 800 700 600 500…

A: This concept can be defined as a tool that helps in measuring the total amount of production of…

Q: Suppose the monopolist has chosen to produce a quantity such that the marginal revenue equals $2. If…

A: The market is often dominated by a single seller but the main characteristic of that single seller…

Q: #1 Identify each of the following as expensionary or contractionary and show their effect on the…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the very first question with 1st…

Q: The factor distribution of income: refers to the pattern of income that people derive from…

A: In economics, income distribution covers how a nation's total GDP is distributed amongst its…

Q: If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 25 percent, what…

A: Money supply refers to the sum of all types of money that are available and circulating in the…

Q: The exchange rate policy where the exchange rate is determined completely by market forces is called…

A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…

Q: cite example where the marketeconomy provides low -priced goods ans sevicesfor lower-income…

A: In a market economy, competition and efficiency often drive businesses to provide goods and services…

Q: Value of Marginal Product Labor 1 2 3 4 5 6 Marginal Product of Labor 10 8 7 5 3 1 Price of Product…

A: The marginal product:The marginal product (MP) is defined as the increase in the firm's total output…

Q: Consider the market shown in the figure. Compute the consumer surplus at the equilibrium price and…

A: Consumers surplus is the difference between the highest price a consumer is willing to pay and the…

Q: Explain how the oil producing countries can enforce an agreement between them to maintain a commonly…

A: Enforcing an agreement among oil-producing countries to maintain a commonly desired level of…

Q: Dollar Price of 100 Yen 0.80 0 Supply Yen D Demand Yen Quantity of Yen Assume that Japan and the…

A: The equilibrium point is where the demand curve meets the supply curve, or intersects each other.…

Q: One reason that the division of income (loss) is reported at the bottom of the income statement is…

A: The objective of the question is to determine whether the statement is true or false. The statement…

Q: Trading envelopes Julie flips a fair coin. If the coin lands heads up, she puts $10 in an envelope…

A: In this scenario, Julie flips a fair coin and places either $10 or $1,000 in an envelope, which she…

Q: Lorenzo's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania.…

A: A demand curve is a graphical representation of the relationship between the quantity of a good or…

Q: a) Assuming each household is making its separate purchase decision, find the market demand function…

A: Quantity demand refers to the specific quantity of the commodity that the consumer buys at a…

Q: Be fast Suppose there are three (3) consumers in a market for bottles of perfume; Mutumbu, Jasanu…

A: Market demand basically refers to the total quantity of a good or service that consumers in a…

Q: A colleague tells you that he can get a business loan from the bank, but the rate seems very high…

A: Adverse selection refers to a situation when one person has more or better information than another,…

Q: Based on the illustration below: MB Ув Smoke 1 ¹0 Ов a. There is no preference between M and smoke…

A: The indifference curve shows the different combinations of two goods that give the same level of…

Q: A PAM partner company won a tender to provide clean water distribution facilities in an area that is…

A: To determine which alternative is more efficient, we can calculate the present value of each…

Q: To restrict a firm's monopoly power, why can't antitrust authorities just set a floor or a ceiling…

A: The answer is b) It is difficult to set a fair price, and even if regulators did, the firm would…

Q: 16. Consider a market in which high-quality and low-quality television sets are sold. Before…

A: Market refers to the place or platform that facilitates the exchange of goods or services for…

Q: This question is about private consumption. Consider a household that lives for two periods. In…

A: Private consumption refers to the spending by individuals and households on goods and services for…

Q: Price (dollars) 30 27 24 21 18 15 12 9 3 units. O 5 units. O 4 units. Quantity demanded 6 units. 0 1…

A: Marginal costs are the additional costs incurred when an additional unit is produced. MC is given…

Q: An import Tariff does: Increase domestic consumption Decrease domestic production Decrease domestic…

A: The import tariff is the tax imposed by a government on imported goods or services. The primary…

Question

Here is an industry in long run equilibrium.
What is profit in this industry when demand is
at D1?
COST
100
80
60
Cost for ONE Firm in Competitive Industry
800
1000
Find Profit:
MC
ATC
Q
P
Market in Industry
D1
100,000
80,000
SSHORT RUN
DO
SLONG RUN
O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define perfect competitive industry

VIEW

Step 2: Find Profit

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
MC we e-MR-D 01214 6 telof wh Piease refer to the above graph of a perfectly competitive firm's cost and revenue curves the price of thin product is $7, what is the proft maximizing level of output? unts the price of this product is $7, what is the frm's total revenue when it maximires proft? S It the price of this product is $7, what is the fiem's total cost when it maximizes profir?S It the price of this product is $7, what is the fims total variable cost when it maximizes proft?S What is the fiem's tatal fed oost? the price of this product is $7, what is the fm's proft or loss when t maximizes pro? of loss, write answer as a regative number wth minius sgn)5
Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
2:08 1 .ull LTE AA A moodle.ku.edu.kw MC $19 16 13 10 160 180 210 Quantity 100 Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit- maximizing price will be III
What is likely to happen in the long nun to firms that do not reach minimum efficient scale? A firm that does not reach its minimum effcient scale OA will lose money ift remains in business OB. wil be experiencing constant retums to scale. O. will eam poslive profts iremans in business OD. will become anatural monopoly OE Both A andB
What happens when more and more firms enter an industry? a) Decline in economic profits b) An increase in the accounting profits c) An increase in price d) A decline in production Answer A В D
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the profit-maximizing output quantityfor individual firms as the market leaves and thenreturns to long-run equilibrium.
12. Suppose a farm in a perfectly competitive marke: produces and sellsa unis bl ou qutput and hastmarginal sevenue of RO 2. Wnat would be the ! if it instead oroduced andvold 4 units of output? RO4 b. RO? s tral severue. TR = you Pud © RO 32 d. RO 64 BR Mc
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the market quantity as the market leavesand then returns to long-run equilibrium
*Suppose that the development of a new droughtresistanthybrid seed corn leads to a 50 percent increase in the averageyield per acre without increasing the cost to the farmers who usethe new technology. If the producers in the corn production industrywere price takers, what would happen to the following?a. the price of cornb. the profitability of corn farmers who quickly adopt thenew technologyc. the profitability of corn farmers who are slow to adopt thenew technologyd. the price of soybeans, a substitute product for corn
Using the graph below, calculate the firm's profits at the profit maximizing output Price 408 384 360 336 312 288 264 240 216 192 168 144 120 96 72 48 24 0 0 56 112 168 224 280 336 392 448 504 560 616 672 728 784 840 896 Quantity -PMRMC-AC