Exam 9: Perfect Competition in a Single Market

If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve,an inward shift in the supply curve would be reflected primarily in the form of

Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to: Which of the above statements are true? I.Provide higher quality goods. II.Seek more open markets elsewhere. III.Lower prices to be more competitive. IV.Stop all trade with the country imposing the quotas.

When a quota/trade barrier is instituted,the loss of domestic consumer surplus may be transferred to all of the following except

Suppose domestic beef producers face demand of Q_D = 1000 - 5P.Suppose the Chinese acquire a taste for U.S.beef such that their demand is Q_D = 500 - 5P.Market demand is now

Positive economic profits exist for a firm in the long run if price is above

Suppose a chemical company is in a perfectly competitive industry and has a short run total cost curve of $\mathrm { TC } = \frac { 1 } { 3 } \mathrm { q } ^ { 3 } + 5 \mathrm { q } ^ { 2 } + 10 q + 10$ and a short run marginal cost of SMC = q² + 10q + 10.At the price of 49,how much will be produced?

Suppose demand for a good is Q_D = 100 - P and supply is Q_S = -20 + P.Suppose that a nationwide quota (of 20)is enforced so that more can be used in a war effort.What is the price?