Questions from General Economics

Q: Suppose the book-printing industry is competitive and begins in a

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. a. Draw a diagram showing the average total cost, marginal cost, marginal revenue, and supply curve of the typic...

Q: Explain two benefits that might arise from the existence of brand names

Explain two benefits that might arise from the existence of brand names.

Q: A profit-maximizing firm in a competitive market is currently producing

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b....

Q: The market for fertilizer is perfectly competitive. Firms in the market

The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. a. How does the price of fertilizer compare to the average tot...

Q: The market for apple pies in the city of Ectenia is competitive

The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Price Quantity ………………….…….Demanded $1 ………………………………………….….1,200 pies 2 …………………………………………….……….1,10...

Q: Suppose that the U.S. textile industry is competitive and

Suppose that the U.S. textile industry is competitive and there is no international trade in textiles. In long run equilibrium, the price per unit of cloth is $30. a. Describe the equilibrium using gr...

Q: An industry currently has 100 firms, each of which has fixed

An industry currently has 100 firms, each of which has fixed costs of $16 and average variable costs as follows: Quantity ……………………Average Variable Cost 1$................................................

Q: Many small boats are made of fiberglass, which is derived from

Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price of oil rises. a. Using diagrams, show what happens to the cost curves of an individual boat-making firm...

Q: Bob’s lawn-mowing service is a profit-maximizing, competitive

Bob’s lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say...

Q: Consider total cost and total revenue given in the following table:

Consider total cost and total revenue given in the following table: a. Calculate profit for each quantity. How much should the firm produce to maximize profit? b. Calculate marginal revenue and marg...