ECON 162
HW 3
经济学HW代写 For each of the following, is the business a price-taking producer? Explain your answers. a). A cappuccino café in a university…
Q1 经济学HW代写
For each of the following, is the business a price-taking producer? Explain your answers.
a). A cappuccino café in a university town where there are dozens of very similar cappuccino cafés
b). The makers of Pepsi-Cola
c). One of many sellers of zucchini at a local farmers’ market
Q2 经济学HW代写
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). Alicia Keys concerts
c). SUVs
Q3 (True or False, and give explanations)
a). A profit-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 经济学HW代写
Suppose demand in the perfectly competitive fish market can be described by the equation ? = 10 − ??/2, while supply is described by ? = 2 + ??/2. Calculate the equilibrium price, consumer surplus (CS), producer surplus (PS), economic welfare, and marginal cost.
