{"id":240396,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/%ef%bb%bf%ef%bb%bf%ef%bb%bf-economics-problems"},"modified":"2018-10-24T09:11:08","modified_gmt":"2018-10-24T09:11:08","slug":"%ef%bb%bf%ef%bb%bf%ef%bb%bf-economics-problems","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/%ef%bb%bf%ef%bb%bf%ef%bb%bf-economics-problems\/","title":{"rendered":"\ufeff\ufeff\ufeff  Economics Problems"},"content":{"rendered":"<p><strong><\/strong><\/p>\n<p>Economics Problems<\/p>\n<p>Questions<\/p>\n<p>Create a pair of graphs to show an perfectly competitive industry and firm in long-run equilibrium. Put the graphs side by side and use the same vertical scale for both graphs.<br \/>\nThe left-hand side should show the supply and demand for the product. The equilibrium price is $50 and the equilibrium quantity is 10 billion units per week.<br \/>\nThe right-hand side should show the average total cost, marginal cost, and demand curves facing the individual firm. The profit maximizing quantity is 2,000 units per week.<br \/>\nDemand<br \/>\nIncreases<br \/>\nShow the impact in the short run of the change in demand on your graph.<br \/>\nWhat happens to the equilibrium price and quantity in the market in the short run?<br \/>\nBoth price and quantity increase<br \/>\nBoth price and quantity decrease<br \/>\nPrice increases and quantity decreases<br \/>\nPrice decreases and quantity increases<br \/>\nWhat happens to the profit maximizing quantity in the short run?<br \/>\nQuantity increases<br \/>\nQuantity decreases<br \/>\nQuantity remains constant<br \/>\nWhat happens to the number of firms in the market in the long run?<br \/>\nNumber increases<br \/>\nNumber decreases<br \/>\nNumber remains constant<br \/>\nUse your graph to show what, if anything, happens in the long run. Assume that the costs curves do not shift.<br \/>\nThe long-run equilibrium price is<br \/>\nGreater than the price in the short run<br \/>\nLess than the price in the short run<br \/>\nEqual to the price in the short run<br \/>\nThe long-run equilibrium price is<br \/>\nGreater than the initial price<br \/>\nLess than the initial price<br \/>\nEqual to the initial price.<\/p>\n<p>8. What allows a monopoly to earn economic profit in the long run?<br \/>\nMarket power which makes the demand facing the firm have a negative slope<br \/>\nBarriers to entry which keep competitors from entering the market<br \/>\nBoth a and b<br \/>\nNeither a or b<br \/>\nExplain why your answer is correct<br \/>\n9. Why does the demand facing a monopoly have a negative slope while the demand facing a perfect competitor has no slope?<br \/>\n10. Would the only cable TV provider in an area be a monopoly? List the characteristics of monopoly and explain how the firm meets or fails to meet each characteristic.<\/p>\n<p>Questions<br \/>\n10. Which output is greater?<br \/>\nA perfectly competitive industry<br \/>\nA monopoly<br \/>\nAssume that all firms maximize profit and have access to the same U-shaped average total cost curve.<\/p>\n<p>11. In your own words, explain what the deadweight loss of a monopoly is and why the competitive output is better..<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Economics Problems Questions Create a pair of graphs to show an perfectly competitive industry and firm in long-run equilibrium. Put the graphs side by side and use the same vertical scale for both graphs. The left-hand side should show the <a href=\"https:\/\/www.benedictsol.com\/blogs\/%ef%bb%bf%ef%bb%bf%ef%bb%bf-economics-problems\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-240396","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/240396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=240396"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/240396\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=240396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=240396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=240396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}