Using a graph, show a short-run equilibrium for the industry and the firm. Explain the graph
What will be an ideal response?
In the above figure, the industry demand and supply curves intersect vertically above Q, where Q is quantity produced and sold at price P. The firm takes P as given, and chooses to produce q units since this is where MR = MC. Average revenue at q is aq and average total cost is bq, so average profit is ab and total profit is Pabc.
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if cotton-growing states experience rapid industrialization?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
Which of the following is a source of information that helps consumers acquire information about the quality of a good or service?
a. brand names b. franchising c. consumer ratings magazines d. all of the above