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.

Assuming that U.S. textile producers have large fixed costs, what is the short-run effect of these imports on the quantity produced by an individual producer?

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.

Describe the equilibrium using graphs for the entire market and for an individual producer.

Now suppose that textile producers in other countries are willing to sell large quantities of cloth in the United States for only$25 per unit.

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses.

Draw two graphs, side by side, illustrating the present situation for the typical firm and in the market..

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses.

How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer?

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses.

Draw two graphs, side by side, illustrating the present situation for the typical firm and in the market.

The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:

$$\begin{array}{cc} \text{ Price } & \text{ Quantity Demanded } \\ \hline\$ 1 & 1,200\text{ pies } \\ 2 & 1,100 \\ 3 & 1,000 \\ 4 & 900 \\ 5 & 800 \\ 6 & 700 \\ 7 & 600 \\ 8 & 500 \\ 9 & 400 \\ 10 & 300 \\ 11 & 200 \\ 12 & 100 \\ 13 & 0 \end{array}$$

Each producer in the market has fixed costs of $\$ 9$ and the following marginal cost:

$$\begin{array}{cc} \text{ Quantity } & \text{ Marginal Cost } \\ \hline 1 \text{ pie } & \$ 2 \\ 2 & 4 \\ 3 & 6 \\ 4 & 8 \\ 5 & 10 \\ 6 & 12 \end{array}$$

Compute each producer's total cost and average total cost for $1$ to $6$ pies.

The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:

A market with a large number of sellers:
A) can only be a monopolistically competitive market.
B) might be a monopolistically competitive or a perfectly competitive market.
C) can only be a perfectly competitive market.
D) might be a perfectly competitive, monopolistically competitive, oligopoly or monopoly market.
E) might be an oligopoly or a perfectly competitive market.

The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses.

Assuming there is no change in demand or the firms’ cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market.

An industry currently has 100$firms, all of which have fixed costs of$$16$ and average variable cost as follows:

$$\begin{array}{cc} \text{ Quantity } & \text{ Average Variable Cost } \\ \hline 1 & \$ 1 \\ 2 & 2 \\ 3 & 3 \\ 4 & 4 \\ 5 & 5 \\ 6 & 6 \end{array}$$

Compute marginal cost and average total cost.

An industry currently has 100 firms, all of which have fixed costs of $16 and average variable cost as follows:

$$\begin{array}{cc} \text { Quantity } & \text { Average Variable Cost } \\ \hline 1 & \$ 1 \\ 2 & 2 \\ 3 & 3 \\ 4 & 4 \\ 5 & 5 \\ 6 & 6 \end{array}$$

Graph the long-run supply curve for this market.

An industry currently has $100$ firms, all of which have fixed costs of $\$ 16$ and average variable cost as follows:

$$\begin{array}{cc} \text{ Quantity } & \text{ Average Variable Cost} \\ \hline 1 & \$ 1 \\ 2 & 2 \\ 3 & 3 \\ 4 & 4 \\ 5 & 5 \\ 6 & 6 \end{array}$$

The price is currently $\$ 10$. What is the total quantity supplied in the market?

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 typical firm in the industry. b. Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. What happens to Hi-Tech’s profits and the price of books in the short run when Hi-Tech’s patent prevents other firms from using the new technology? c. What happens in the long run when the patent expires and other firms are free to use the technology?