The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how manyGucci bags will be sold per week? Use the midpoint formula.Suppose the current price of silver is $5 per pound and the quantity supplied is 200 pounds per day. If the price of silver falls to $4.5 per pound, the quantity supplieddrops to 180 pounds per day. Use the midpoint formula to calculate the price elasticity of supply for silver.According to an article, even elite resorts don't have advanced systems that can react quickly to demand changes, unlike airlines. Even if they could, many hotelierssay people don't respond that much to lower rates. "We've experimented this, cutting our prices by $50 [per night], and we didn't see a significant response inoccupancy," says Dan Collins, a vice president for JDS Hospitality.Based on the information above, the demand for resort rooms is.inelasticinelasticunit elasticelastic CostsMC(per pound)ATCAVC3.002.251.50150 180 225Quantity(pounds)The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the followingquestions. Assume the market price is $3 per pound.a. What is the lowest price at which the apple producer will supply output in the short run? $per pound.b. What is the firm's profit-maximizing (loss-minimizing) output?c. Is the firm earning a profit or a loss?lossprofit

We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how many Gucci bags will be sold per week? Use the midpoint formula.

The current price of Gucci bags is $39 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $48, how many Gucci bags will be sold per week? Use the midpoint formula.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section22.2: Perfect Competition In The Short Run

Problem 3ST

See similar textbooks

Similar questions

Are there fixed costs in the lung-run? Explain briefly.
What two lines on a cost curve diagram intersect at the shutdown point?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
Figure: Cost Curves for Corn Producers Price, cost of bushel $30 26 MC 22 18 ATC AVC 14 10 1 3 4 7 Quantity of corn (bushels) Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce of corn and earn an ec omic equal to 2 bushels; profit; $0 2 bushels; loss; just more than $80 per bushel 3 bushels; profit; loss, -$15 4 bushels; profit; just less than $80 per bushel
Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6
The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 45 40 35 15 10 5 0 0 2 MC ATC AVC 10 12 4 8 14 16 QUANTITY (Thousands of overallses per day) 18 20 In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of The rectangular area represents a short-run Profit or Loss On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. of $ overallses. thousand per day for the firm.
Farmer Lee grows strawberries. The average total cost and marginal cost of growing strawberries in the long run for an individual farmer are illustrated in the graph to the right. Suppose the market price is $7.05 per box. If so, then farmers will strawberries until the market price is $ number rounded to two decimal places.) per box. (Enter a numeric the market for a real enter exit Price and cost (dollars per box) 10- 9- 8- 5- 3- 2- 1. 0 MC ATC 10 20 30 40 50 60 70 80 90 100 Quantity of strawberries (boxes per week) o
The following graph plots daily cost curves for a firm operating in the competitive market for instant pots. PRICE (Dollars per instant pot) 100 90 80 70 60 50 40 30 20 10 0 0 D 5 25.00 70.00 Price (Dollars per instant pot) MC 100.00 ATC AVC 10 15 20 25 30 35 40 QUANTITY (Thousands of instant pots) Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.) Quantity (Instant pots) 45 50 Total Revenue Fixed Cost (Dollars) (Dollars) 1,600,000 1,600,000 1,600,000 Variable Cost (Dollars) Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In…
Ssessm /assignm f'CollegeBoard AP Classroom Unit 3 Progress Check: FRQ 2. Quantity of Output Total Cost 0. $12 1. $14 $18 3. $24 4. $32 5. $42 $54 9. 7. $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm's profit-maximizing quantity of hats? Explain using marginal analysis. (0) Draw a correctly labeled graph showing the firm's demand and marginal cost curves, and show the profit-maximizing quantity of nats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm's profit-maximizing quantity of autput in the short run? Explain. B IU Type here to search P国

15. The table below shows cost data for producing different amounts of refrigerators. Use the given information to answer the questions below. Quantity Total Cost Variable Cost Marginal Cost Average Variable Cost Average Total Cost in $ in $ in $ in $ in $ 241 0 271 30 361 120 491 250 681 440 901 660 0 10 What is the profit (loss) at that level of production? 20 30 40 50 How many refrigerators would a competitive firm produce if the market price was $19? 3 9 13 19 22 3.00 6.00 8.33 11.00 13.20 27.10 18.05 16.37 17.02 18.02
Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)