Problem 2
Suppose the market for steel and the market for cars both have large numbers of buys and sellers. Which market is likely to be affected by information asymmetries?
Problem 3
Check all that apply. In a perfectly competitive market, \(\mathrm{MR}=\left[\mathrm{LO}_{13.2}\right]\) a. Price b. Average revenue c. Total revenue d. \(\frac{\Delta \text { in total revenue }}{\Delta \text { in quantity }}\)
Problem 10
Suppose the quantity of apples supplied in your market is \(2,400 .\) If there are 60 apple producers, each with identical cost structures, how many apples does each producer supply to the market?
Problem 15
Curling is a sport that involves sliding a granite stone over a patch of ice. The Winter Olympics has generated a lot of excitement about the fascinating sport of curling. As a result, demand for curling stones has increased. Curling stones are made from blue Trefor granite. There are limited deposits of blue Trefor, and other types of granite are poor substitutes. If the increase in demand for curling stones persists, do you expect the long-run equilibrium price to increase, decrease, or stay the same?
Problem 17
Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. What will happen to demand-shift right, shift left, no shift? b. What will happen to profits for chocolate producers in the short run- increase, decrease, or no change? c. What will happen to the short-run supply curve-increase, decrease, or no change? d. What will happen to the long-run supply curve-increase, decrease, or no change?
