ND APPLICATIONS ter 14 Study Plan and get instant feedback. Use the following figure, which shows the situation n 14:1) facing Flight Inc., a producer of running shoes, to firms work Problems 5 to 8. MC ATC 100 80 Price and cost (dollars per pair] 60 40 using The 20 MR s an 50 100 150 200 250 Quantity (pairs of running shoes per week) 5. What quantity does Flight produce, what price does it charge, and what is its economic profit? 6. In the long run, how does Flight change its price da and the quantity it produces? What happens to t- the market output of running shoes? 7. Does Flight have excess capacity in the long run? If it has excess capacity in the long run, why m, doesn't it decrease its plant size? 8. Is the market for running shoes efficient or inef- e ficient in the long run? Explain your answer. Product Development and Marketing (Study Plan 14,3) 9. Suppose that the Benetton Group's marginal cost of a cardigan is a constant (50 and the total fixed cost at one of its stores is C3,000 a day, which in- cludes C1,090 spending on advertising because oth- er stores nearby are also advertising their cardigans. This Benetton store currently sells 40 cardigans per day, which is its profit-maximizing number of cardigans. Before its competitors started advertis- ing their products, this Benetton store's total fixedADDITIONAL PROBLEMS AND APPL MyLab Economics You can work these problems in Homework Aggregate Supply 10. Explain for each event whether it changes the quantity of real GDP supplied, short-run ag- gregate supply, long-run aggregate supply, or a combination of them. Hong Kong firms switch to lower-cost 3D printing technology. An ageing population is expected to shrink Hong Kong's labor force. Foreign students in Hong Kong universities get temporary work permits. Firms from mainland China open offices in Hong Kong. The Hong Kong price level rises. Aggregate Demand 11. Examine for each event whether it changes the quantity of real GDP demanded or aggregate demand in Japan. Japanese price level rises. Depreciation of yen attracts more tourists to Japan. Japan's coal consumption rises due to a prolonged shut down of nuclear plants. Japan's sales tax rises