Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Question 46 12 pts (This is a file upload question. You can draw your graphs with a computer or hand draw them on a piece

image text in transcribed
Question 46 12 pts (This is a file upload question. You can draw your graphs with a computer or hand draw them on a piece of paper. If you draw them with a computer, you simply upload the electronic file here. If you hand draw your work, you can scan it with a scanner or cellphone to upload the file here. The file uploaded must be in the format of doc, docx, pdf, jpg or png. Don't submit HEIC file.) For each of the following separate parts, you are required to draw a graph. (a) The market for apples is perfectly competitive. Currently, all firms in the market make a positive profit. Draw a graph of an individual firm. Your graph should include MC, MR, and ATC. You should also indicate the profit-maximizing quantity. (b) Firm C is a monopolist firm, and firm C makes a profit. Draw a graph for firm C. Your graph should include MC, MR, demand curve and the ATC. You should also indicate the profit. (c) A binding price ceiling is imposed on the market for good A. Draw a graph to show the effects of the price ceiling. Indicate the shortage or surplus if any. Suppose demand for good A decreases. (Price elasticity of demand remains unchanged). Because of the decrease is the demand for good A. the existing price ceiling becomes non-binding. On the same graph, illustrate how the decrease in demand affects the market. Indicate the new shortage or surplus if any. (d) Consider the total output curve below. Between 0 and 12 workers, the total output increases at an increasing rate. Between 12 and 20 workers, the increase in total output slows down. After 20 workers, total output decreases. Based on the given information, draw the corresponding graph of Marginal Product (MP). Mark the values on the horizontal axis. Total output 12 20 labor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N. Gregory Mankiw, William M. Scarth

5th Canadian Edition

978-1464168505

Students also viewed these Economics questions