ECON 162
HW 3
经济ECON 162代写 For each of the following, is the business a price-taking producer? Explain your answers. a).Acappuccino café…
Q1 经济ECON 162代写
For each of the following, is the business a price-taking producer? Explain your answers.
a).Acappuccino café in a university town where there are dozens of very similar cappuccino cafés
b).Themakers of Pepsi-Cola
c).Oneof many sellers of zucchini at a local farmers’ market
Q2
For each of the following, is the industry perfectly competitive? Referring to the four conditions (Page 5) we introduce in the lecture, explain your answers.
a).Aspirin
b).AliciaKeys concerts
c).SUVs
Q3 (True or False, and give explanations)
a).Aprofit-maximizing firm in a perfectly competitive industry should select the output level at which the difference between the market price and marginal cost is greatest.
b).An increase in fixed cost lowers the profit-maximizing quantity of output produced in the short run.
Q4 经济ECON 162代写
Suppose demand in the perfectly competitive fish market can be described by the equation p = 10 −Qd/2, while supply is described by p = 2 + Qs/2. Calculate the equilibrium price, consumer surplus (CS), producer surplus (PS), economic welfare, and marginal cost.
