Each of 1000 identical firms in the competitive peanut butter industry has a short- run marginal cost

Question:

Each of 1000 identical firms in the competitive peanut butter industry has a short- run marginal cost curve given by

SMC = 4 + Q

If the demand curve for this industry is

P = 10 - 2Q/1000

What will be the short- run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

See More Books

Question Posted: Dec 12, 2014 10:22 AM

See More Questions

In a supply-and-demand diagram, show producer and consumer surplus at the market equilibrium.
You are valuing two otherwise identical firms in the same industry. One firm has a corporate jet for every executive at the vice president level and above, while the other does not have a single...
Suppose there are 100 identical firms in the perfectly competitive note card industry. Each firm has a short-run total cost curve of the form: STC = 1/300 q3 + 0.2q2 + 4q + 10 and marginal cost is...
Would individual mandates for health insurance be more or less burdensome to the poor than employer mandates? Would lower-income groups be wise to favor one plan over the other?
Why does the price impact of a trade seem to be directly related to the size of the trade?
Assume that $u:[0, \infty) ightarrow \mathbb{R}$ is positive and improperly Riemann integrable. Show that $u$ is also Lebesgue integrable.
What is the purpose the Manage Stage Boundaries Process in a PRINCE2 project? AppendixLO1
What would happen to the sampling distribution of the mean if we increased sample size from 5 to 25?
Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 per year. Its...
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
A competitive firm has the cost structure described in the following table. Graph the marginal cost, average variable cost, and average total cost curves. How many units of output will it produce at...
A perfectly competitive firm faces a price of 10 and is currently producing a level of output at which marginal cost is equal to 10 on a rising portion of its short- run marginal cost curve. Its...
Telemark-Kjemi AS manufactures an industrial solvent in two departments - mixing and cooking. This question focuses on the Cooking Department. During June 2015, 90 tonnes of solvent were completed...
The following accounts appear in the ledger of Sheridan Ltd. after the books are closed at December 31 ( in thousands). Share Capital-Ordinary, no par, 1 stated value, 400,000 shares authorized;...
1. Let f(x) 223-9x2. (a) Find all critical points for f(x).
Sadie's ski shop sells ski and boots. Skis are sold for $300 per pair and have associated Variable Costs of $150 per pair. Boots are sold for $200 per pair with an associated Variable Expense of $65...
How do you apply what is learned in the Science of Branding 1 5 - 1 , Key Insights Regarding Global Brand Strategies Based on Research Findings to improve on the brand?
CASH MANAGEMENT Dr. Umburgh noticed that the $100.00 check made to Trenton Medical Supplies has not cleared for four months. What type of check is the outstanding check referred to as? a. Stale-dated...
HG Lang Designs operates an exclusive bridal boutique in Manhattan. All gowns are designed by Lang but are manufactured by various small firms in France and Italy. The following financial information...
A handrail, which weighs 120 N and is 1.8 m long. was mounted to a wall adjacent to a small set of steps (Figure P4.26). The support at A has broken, and the rail has fallen about the loose bolt at 8...
Use the MATLAB commands filter and filt latt with the coefficients obtained in Exercise 12.9 to filter a given input signal. Verify that the output signals are identical. Compare the processing time...
An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30 Q2 + 5 Q3 Based on this information, determine: a. The fixed cost of producing 10 units of output. b....
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $6 per hour and capital is rented at $12 per hour. If the marginal product of labor is 50...
A firm??s fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable...
Your company produces a health magazine. Its sales data for 1 - year subscriptions are as follows: Year of Operation Subscriptions Sold % Expired at Year End 2 0 2 0 $ 3 0 0 , 0 0 0 5 0 2 0 2 1 $ 6 4...
The adjusted trial balance for Tybalt Construction on December 3 1 of the current year follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 3 1 Number Account Title Debit Credit 1 0 1 Cash $...
( US$ millions ) 1 2 / 3 1 / 2 0 1 4 1 2 / 3 1 / 2 0 1 3 1 2 / 3 1 / 2 0 1 2 1 2 / 3 1 / 2 0 1 1 Net income $ 1 4 , 4 3 1 $ 1 2 , 8 5 5 $ 1 0 , 7 7 3 $ 9 , 7 7 2 Depreciation 3 , 5 4 4 2 , 7 0 9 1 ,...

Each of 1000 identical firms in the competitive peanut butter industry has a short- run marginal cost

Question:

Step by Step Answer:

SR supply MC i MC i 4 Q i Q i MC i 4 Q i Q MC 4000 Q 1000 MC 4000 MC P ...View the full answer

Microeconomics and Behavior

Students also viewed these Economics questions