In Problem, suppose that the demand for widgets doubles (so that, for example, on the new demand
Question:
a. In the short run, what is the new price of a widget?
b. In the long run, what is the new price of awidget?
Transcribed Image Text:
Industry-Wide Demand Price Firm's Marginal Cost Curve Quantity Quantity 500 400 300 200 100 50 25 10 Marginal Cost $2 $2 12 12 15 15
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (15 reviews)
a Supply now crosses demand ...View the full answer
Answered By
Rohith Bellamkonda
I am studying in IIT Indore,the most prestigious institute of India.I love solving maths and enjoy coding
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
In Problem 28, suppose that the demand for personal computers increased each month, as follows: In addition to the regular production capacity of 300 units per month, PM Computer Services can also...
-
The demand for widgets is given by P = 60 - Q. Widgets are competitively supplied according to the inverse supply curve (and marginal private cost) MPC = c. However, the production of widgets...
-
For the Outsourcing Decision Model, suppose that the demand volume is lognormally distributed with a mean of 1,500 and a standard deviation of 500. What is the distribution of the cost differences...
-
A water sprinkler sprays water over a distance of 30 feet while rotating through an angle of 135. What area of lawn receives water? 135 30 ft
-
If you were comparing the karyotypes of species that are closely related evolutionarily, what types of similarities and differences would you expect to find?
-
A force in the negative direction of an x axis is applied for 27 ms to a 0.40 kg ball initially moving at 14 m/s in the positive direction of the axis. The force varies in magnitude, and the impulse...
-
P 8 Use the Standard Normal Table or technology to find the z-score that corresponds to the cumulative area or percentile. Table 4-Standard Normal Distribution Arca Z 0 Z .09 .08 .07 .06 .05 .04 .03...
-
Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/export transactions in 2004: March 1 Bought inventory costing 50,000 pesos on credit. May 1 Sold 60 percent of...
-
We will be discussing topics to make sure that you've chosen a manageable one for this assignment, but here are a few sample problems you might want to consider writing about (choose ONLY ONE): not...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
In Problem, suppose the city imposes an excise subsidy of $3 per widget. (That is, widget manufacturers receive $3 from the government for each widget they produce.) a. In the short run, what is the...
-
Widgets are made only in America. They are provided by a constant-cost industry, which is in long-run equilibrium. The following charts show the American demand curve for widgets, the foreign demand...
-
The design model for a new ship has a mass of \(10 \mathrm{~kg}\) and is tested in an experimental towing tank to determine its resistance to motion through the water at various speeds. The test...
-
What is the responsibility of Western countries toward the economic development of developing countries?
-
Q6. X A uniform small disk of radius R and mass m starts from rest at the upper end of the track shown in figure and rolls without slipping. If H=24.8 m, h=20 m and the track is horizontal at the...
-
Organizational development techniques seek to bring about change in which of the basic change categories? a . structure b . technology c . mission d . people e . process
-
8. Water is flowing through the pipe from left to right. Write an equation for the pressure difference PA- PB between points A and B. If at point A the velocity of the water is 3 m/s when the...
-
6. (3 points) A wave in a spring, stretched to a length of 8.28 m, travels at a speed of 3.88 m/s. How many nodes are located along the length of the spring if the frequency of the standing wave is...
-
Find the domain and range of: (a) f(x, y, z)= x-y + y-z (b) f(x, y) = In(4x - y)
-
Use the method of Example 4.29 to compute the indicated power of the matrix. 1 0 1
-
Which of the following statements about desirable attributes of accounting standards boards is most accurate? Accounting standards boards should: A. concede to political pressures. B. be guided by a...
-
What is the cost of Alt. B that will make it at the breakeven point with Alt A assuming a 12% interest rate? A $150 SX Cost Uniform annual benefit 40 65 Salvage value 100 200 Useful life, in years 6.
-
Consider two alternatives: Assume that Alt. B is not replaced at the end of its useful life. If the MARR is 10%, what must be the useful life of B to make Alternatives A and B equally desirable? A B...
-
Jane Chang is making plans for a summer vacation. She will take $1000 with her in the form of traveler's checks. From the newspaper, she finds that if she purchases the checks by May 31, she will not...
-
003 The minimal polynomial associated with the matrix 102 01 1 is
-
Question 1: How do strategy and tactical action relate to each other in an organization? Question 2: How can you improve the implementation of strategy in this business organization?...
-
Larkin Corporation sells products for $125 each that have variable costs of $50 per unit. Larkin's annual fixed costs are $430,000. (10 points Total) a. What is Larkin's contribution margin per unit?...
Study smarter with the SolutionInn App