Using a graph, show a short-run equilibrium for the industry and the firm. Explain the graph
What will be an ideal response?
In the above figure, the industry demand and supply curves intersect vertically above Q, where Q is quantity produced and sold at price P. The firm takes P as given, and chooses to produce q units since this is where MR = MC. Average revenue at q is aq and average total cost is bq, so average profit is ab and total profit is Pabc.
You might also like to view...
Which of the following will result in the money market when the price level in an economy rises, while the supply of money remains unchanged? a. The demand for money will decrease
b. The supply of money will increase. c. The rate of interest will decrease. d. The total investment spending in the economy will increase. e. The rate of interest will increase.
If the GDP measures the current market value of goods and services produced in a given period, how can the final sales of goods and services for that period be a different value?
What will be an ideal response?
Libertarians believe that
a. the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance.". b. the government should aim to maximize the well-being of the worst-off person in society. c. everyone in society should have equal utility. d. the government should not redistribute income.
Which statement best describes a difference between presidential and parliamentary democracies
A. In a presidential democracy, the head of government is a member of the legislature. In a parliamentary government, citizens directly elect the head of government. B. In a presidential democracy, citizens are able to vote for their legislators. In a parliamentary democracy, citizens are not able to vote for their legislators. c. In a parliamentary democracy, citizens vote directly for the head of government. In a presidential democracy, citizens do not vote directly for the head of government. D. In a parliamentary democracy, the executive and legislative branches are joined. In a presidential democracy, the two branches are separate.