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Question 1

The graph below shows cost curves for a firm operating in a perfectly competitive market.

Graphs with window x: 0 to 8, y: 0 to 27. Start Graph, Color black
xy
018
118
218
318
418
518
618
718
818
Start Graph, Color blue
xy
017
114
213
314
417
522
629
738
Start Graph, Color red
xy
017
112
213
320
433
Start Graph, Color green
xy
131
221.5
319.67
421.25
525.4
631.83
740.43
Label "Quantity of Avocados" at pixel coordinates (175,0).Label "Price of Avocados" at pixel coordinates (0,170).

Suppose that the equilibrium price is $18 (black line). This firm is earning

 

Hint


Question 2

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphs with window x: 0 to 8, y: 0 to 29. Start Graph, Color black
xy
026.33
126.33
226.33
326.33
426.33
526.33
626.33
726.33
826.33
Start Graph, Color blue
xy
019
116
215
316
419
524
631
740
Start Graph, Color red
xy
019
114
215
322
435
Start Graph, Color green
xy
135
224.5
322.33
423.75
527.8
634.17
742.71
Label "Quantity of Avocados" at pixel coordinates (175,0).Label "Price of Avocados" at pixel coordinates (0,170).

Suppose that the equilibrium price is $26.33 (black line). What will happen in this market in the long run?

 

Hint


Question 3

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphs with window x: 0 to 8, y: 0 to 26. Start Graph, Color black
xy
015.33
115.33
215.33
315.33
415.33
515.33
615.33
715.33
815.33
Start Graph, Color blue
xy
016
113
212
313
416
521
628
737
Start Graph, Color red
xy
016
111
212
319
432
Start Graph, Color green
xy
129
220
318.33
420
524.2
630.67
739.29
Label "Quantity of Apples" at pixel coordinates (175,0).Label "Price of Apples" at pixel coordinates (0,170).

Suppose that the equilibrium price is $15.33 (black line). What will happen in this market in the long run?

 

Hint


Question 4

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphs with window x: 0 to 8, y: 0 to 27. Start Graph, Color black
xy
019.66
119.66
219.66
319.66
419.66
519.66
619.66
719.66
819.66
Start Graph, Color blue
xy
017
114
213
314
417
522
629
738
Start Graph, Color red
xy
017
112
213
320
433
Start Graph, Color green
xy
131
221.5
319.67
421.25
525.4
631.83
740.43
Label "Quantity of Avocados" at pixel coordinates (175,0).Label "Price of Avocados" at pixel coordinates (0,170).

Suppose that the equilibrium price is $19.66478105462 (black line). What will happen in this market in the long run?

 

Hint


Question 5

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphs with window x: 0 to 8, y: 0 to 23. Start Graph, Color black
xy
012
112
212
312
412
512
612
712
812
Start Graph, Color blue
xy
013
110
29
310
413
518
625
734
Start Graph, Color red
xy
013
18
29
316
429
Start Graph, Color green
xy
123
215.5
314.33
416.25
520.6
627.17
Label "Quantity of Textbooks" at pixel coordinates (175,0).Label "Price of Textbooks" at pixel coordinates (0,170).

Suppose that the equilibrium price is $12 (black line). What will happen in this market in the long run?

 

Hint