Contents

Thursday, October 8, 2015

Micro Chapter 14 【Firms in Competitive Markets】

1. Characteristics of competitive markets
The model of competitive markets relies on these three core assumptions: Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why 

2. The demand curve facing a competitive firm
The following graph shows the daily market for medium cardboard boxes in San Francisco. Based on the preceding graph showing the daily market demand and supply curves, the price

3. Profit maximization using total cost and total revenue curves
Suppose Jacques runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan.

4. Profit maximization in the cost-curve diagram
Suppose that the market for blenders is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.

5. Profit maximization and shutting down in the short run
Suppose that the market for dress shirts is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.

6. Deriving the short-run supply curve
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.





7. Short-run supply and long-run equilibrium
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.

8. Short-run and long-run effects of a shift in demand
Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 250 million pounds per year. Suppose that WebMD claims that a protein found in chicken will increase your expected lifespan by 3 years.

65 comments:

  1. You the man MR.Orange

    ReplyDelete
  2. i love you bro let me suck ur dick

    ReplyDelete
  3. God bless you, I hope you have wonderful days ahead of you

    ReplyDelete
  4. this site has SAVED MY LIFE.

    ReplyDelete
  5. This man deserves a medal

    ReplyDelete
  6. Very useful tool to review my work. Thanks for the small explanations on the side.

    ReplyDelete
  7. I love you, Mr. Orange. Is there a Mrs. Orange?? (;

    ReplyDelete
  8. good looks nigga

    ReplyDelete
  9. Not everything is explained. Some of the numbers you came up with, you don't show how you got.

    ReplyDelete
  10. you're a madman my teacher can go fuck himself with these homeworks god bless you

    ReplyDelete
  11. no.7 can i get more ex-plane please.

    ReplyDelete
  12. God bless you. You will always be in my prayers

    ReplyDelete
  13. I'll die for you. I'll ride on you.

    ReplyDelete
  14. my man aaryan t need them real bad

    ReplyDelete
  15. this man is a legend

    ReplyDelete
  16. I love you <3
    God bless your soul, seriously, i owe u

    ReplyDelete
  17. this has saved my microecon grade omg u r the man mr orange
    ToT

    ReplyDelete
  18. Thank you for being an amazing soul! <3

    ReplyDelete
  19. You are the best person to ever walk this planet

    ReplyDelete
  20. You deserve the world and I hope you achieve all of your life's ambitions.

    ReplyDelete
  21. THANK YOU SO MUCHHH

    ReplyDelete
  22. May god bless you and your pillow is cold on each side every night.

    ReplyDelete
  23. SERIOUSLY THANK YOU! Still helping students years later...

    ReplyDelete
  24. i want to give you madax

    ReplyDelete
  25. thank u mr. orange i love you

    ReplyDelete
  26. thank you mr orange!

    ReplyDelete
  27. aint no way i found this website barely , god bless tho

    ReplyDelete
  28. angle triangle rectangle thanks babe!

    ReplyDelete
  29. preciate you shlatt

    ReplyDelete
  30. dude what an absolute fucking legend. fuck chegg, ill personally hand over that $15 to you myself

    ReplyDelete
  31. absoloutly exquisite work w mans

    ReplyDelete
  32. Still helping in 2024!!!!!

    ReplyDelete
  33. You make me wanna kiss you on the mouth for this #thanks

    ReplyDelete
  34. You are still the G.O.A.T thank you sooo much!

    ReplyDelete
  35. Jacques lives in Toronto and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totalling $286,000. He owns his show room; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as an accountant, receive an annual salary of $20,000 with no additional monetary costs, and rent out his show room at the $3,000 per year rate. No other costs are incurred in running this guitar business.
    Identify each of Jacques's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
    Implicit Cost
    Explicit Cost
    The rental income Jacques could receive if he chose to rent out his show room


    The wages and utility bills that Jacques pays


    The wholesale cost for the guitars that Jacques pays the manufacturer


    The salary Jacques could earn if he worked as an accountant


    Complete the following table by determining Jacques's accounting and economic profit of his guitar business.
    Profit
    (Dollars)
    Accounting Profit
    Economic Profit

    ReplyDelete
  36. id hop on ur shit if you need. much love

    ReplyDelete