A perfectly competitive industry that produces microchips consists of many firms that can produce 100 microchips per day at a minimal average cost $0.50 per microchip. Each firm must also pay shipping fees for its production, and the shipping fee s per each microchip is an increasing function of the total industry output Q: s = 0.0001Q. The demand for microchips is given by Q = 6, 000 ? 1, 000p, where p is the price of a microchip.

(a) Let the microchip industry be in a long-run equilibrium. What is the equilibrium price of a microchip? How many microchips are produced? How many firms are there in the industry? What is the shipping fee per microchip?

(b) Suppose that the demand for microchips increases to Q = 7, 100 ? 1, 000p. 4 In a new long-run equilibrium, what is the equilibrium price of a microchip? How many microchips are produced? How many firms are there in the industry? What is the shipping fee per microchip?

(c) Plot these two long-run equilibria in the market for microchips. Carefully mark all relevant values. Calculate the change in the producers' surplus between the situations described in (a) and (b).

(d) Show that the increase in the producers' surplus equals to the increase in the total shipping costs as the industry expands incrementally from the equilibrium output in (a) to the equilibrium output in (b).

(e) Let the demand for microchips be as in part (b). Suppose that due to shortages in containers, the shipping fee per microchip becomes s = 0.0002Q. In a new long-run equilibrium, what is the equilibrium price of a microchip? How many microchips are produced? How many firms are there in the industry? What is the shipping fee per microchip? (f) How will the burden of this shipping fees increase be shared between consumers and producers? What will be the changes of consumers' and producers' surplus the total shipping fees? How will the total welfare be affected?

23.5 The trial balance of Outsize Books Ltd revealed a difference in the books. In order that the error(s) could be located it was decided to prepare purchases and sales ledger control accounts. From the following information prepare the control accounts and show where an error may have been made: 2018 E Jan 1 Purchases ledger balances 19,420 Sales ledger balances 28,227 Totals for the year 2018 Purchases journal 210,416 Sales journal 305,824 Returns outwards journal 1,452 3,618 Returns inwards journal 205,419 Cheques paid to suppliers 62 Petty cash paid to suppliers Cheques and cash received from customers 287,317 4,102 Discounts allowed 1,721 Discounts received Balances on the sales ledger set off against balances in the purchases ledger 640 Dec 31 The list of balances from the purchases ledger shows a total of E20,210 and that from the sales ledger a total of E38,374Question 19 Not put answered Pointsoutof 100 | Flag question Refer to the following graph. FH is the which tells us how much of good B must be exchanged on market to obtain an additional good A Select one: O a. production possibility curve; domestic O b, consumption possibilities curve; world O c. consumption possibilities curve; domestic O d. production possibility curve; worldQuestion 13 If an efficient country trades with the rest of the world, it consumes at a point that lies a. on a consumption possibilities curve that is flatter than its production possibilities curve. b. on a consumption possibilities curve that is steeper than its production possibilities curve. on a consumption possibilities curve that is either steeper or flatter than its production possibilities curve. d. on its production possibilities curve.Question 2: (20 Marks) a) Define what a production possibility curve is and provide a graphical representation. b) Why do we say that such a curve exhibits the "law of increasing opportunity costs"? c) How is economic growth reflected when looking at the concept of a production possibility curve? c) What are some factors that can create such growth? d) What is an opportunity cost of economic growth? Provide an example.End of Chapter Question 6.33 Racey has prepared an income statement for the 12-month reporting period ended 30 June on a cash basis, showing a $50,920 profit. The cash-based statement shows the following: Sales $327,300 Inventory purchased 193,500 Gross profit 133,800 Expenses Salary and wages 33,500 Administration 22,200 Rent 10,900 Advertising 6,600 Interest 5,620 Insurance 4,060 Additional information The accounts receivable and accounts payable balances at the start of the reporting period were $19,400 and $11,600 respectively. At the end of the reporting period, Racey had accounts receivable of $25,000 and accounts payable of $23,320. The opening inventory was $37,800 and the closing inventory was $44,800. An advertising invoice of $3,490 had not been paid. The business has equipment that cost $47,700. It has a useful life of 5 years and an expected salvage value of $5,200. The insurance expense represents the 12-month premium on a policy that was taken out on 30 April