Graph long-run equilibrium to include MC, AC, D, and MR to answers for questions
ID: 1178284 • Letter: G
Question
Graph long-run equilibrium to include MC, AC, D, and MR to answers for questions 1 through 4:
1. Perfect competition
2. industry entry and exit to be relatively easy:
3. Monopolistic competition
4. Products which are identical
1.
(a) Draw a simple demand curve and a simple supply curve. Label each curve and each axis. Identify the area that represents consumer surplus. Identify the area that represents producer surplus.
(b) Describe briefly in words how a price floor can cause a %u201Cdeadweight loss%u201D.
(c) Define %u201Cprice discrimination%u201D and list the three conditions that must be met for a firm to successfully practice price discrimination.
2.
(a) Write in words (or in mathematical symbols) the formula for the coefficient of price elasticity of demand.
(b) What are the numbers or ranges of numbers that correspond to (1) perfectly elastic demand; (2) elastic demand?
(c) Give a realistic example of a good with perfectly elastic demand
(d) Write in words (or in mathematical symbols) the formula for the coefficient of cross elasticity of demand.
(e) Is the coefficient of cross elasticity of demand of a pair of complementary goods %u201Cpositive%u201D, %u201Czero%u201D, or %u201Cnegative%u201D? (Answer with one word.)
3.
(a) Define (1) %u201Ccartel; (2) natural monopoly.
(b) Define: (1) %u201Crent seeking%u201D; (2) %u201Cthe principle of diminishing returns%u201D.
(c) Define %u201C4-firm concentration ratio%u201D and give one real-world example of an industry with a high 4-firm concentration ratio.
Explanation / Answer
Hey the file size was big, so I poste the three pictures differently, the correct oder is 2>1>3
Please rate the first question... and it took 30 mins, so rate 5 star
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