$72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 1,500 1.800 2,100 2,400 2,700 3.000 3,300 3,600 3,900 4.200 4,500 Market Supply and Demand Functions Cost Functions for a Typical Firm in the Industry $72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 02 4 6 8 10 12 14 16 18 20 Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level for ever. Then, in the short run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity there will be units, and firms in the industry each making an economic profit of dollars. Then, in the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.
$72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 1,500 1.800 2,100 2,400 2,700 3.000 3,300 3,600 3,900 4.200 4,500 Market Supply and Demand Functions Cost Functions for a Typical Firm in the Industry $72 $68 $64 $60 $56 $52 $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 02 4 6 8 10 12 14 16 18 20 Consider the file Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level for ever. Then, in the short run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity there will be units, and firms in the industry each making an economic profit of dollars. Then, in the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 6E
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