Question

Assume that a perfectly competitive hand sanitiser market is in long - run equilibrium. The price...

Assume that a perfectly competitive hand sanitiser market is in long - run equilibrium. The price of hand sanitiders is observed to increase during the COVID 19 pandemic, and then it returns back to its normal price after the pandemic. use the diagram below to discuss this market before, during and after the pandemic . include in your discussion the profit levels in each case.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume that a perfectly competitive hand sanitiser market is in long-run equilibrium. The price of hand...
Assume that a perfectly competitive hand sanitiser market is in long-run equilibrium. The price of hand sanitisers is observed to increase during the COVID 19 pandemic, and then it returns back to its normal price after the pandemic. Use the diagram below to discuss this market before, during and after the pandemic. Include in your discussion the profit levels in each case. Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and...
Suppose that the market for laptops is perfectly competitive. The long-run equilibrium price is $3000 for...
Suppose that the market for laptops is perfectly competitive. The long-run equilibrium price is $3000 for a laptop. Suppose that the laptop market is initially in long-run equilibrium. Assume that all businesses that make laptops are identical. On a diagram, illustrate the market demand for laptops, the short-run and long-run market supply of laptops. (1 mark) The government decides to impose $500 tax for each laptop sold by the firm. Using an appropriate diagram, explain how the introduction of the...
Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive...
Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive market in that in both markets, firms produce where price equals marginal cost. produce at the minimum point of their average total cost curves. break even. produce where price equals marginal revenue.
In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal...
In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to average cost. True or false
Assume that a perfectly competitive, constant cost industry is in a long run equilibrium with 60...
Assume that a perfectly competitive, constant cost industry is in a long run equilibrium with 60 firms. Each firm is producing 90 units of output which it sells at the price of $41 per unit; out of this amount each firm is paying $3 tax per unit of the output. The government decides to decrease the tax, so the firms will be paying $1 tax per unit. a) Explain what would happen in the short run to the equilibrium price...
19. Suppose a perfectly competitive firm and industry are in long-run equilibrium and the firm earns...
19. Suppose a perfectly competitive firm and industry are in long-run equilibrium and the firm earns an economic profit in the short run. Which of the following is likely to occur in the long run? a. There will be an increase in the amount of economic profit earned by the firm. b. The market supply curve will shift to the left, and the market price will increase. c. The market supply curve will shift to the right, and the market...
A perfectly competitive industry with constant costs initially operates in long-run equilibrium. When demand increases: A....
A perfectly competitive industry with constant costs initially operates in long-run equilibrium. When demand increases: A. in the long and short runs, prices and profits will be lower relative to what they were before the demand increase. B. in the short run, prices and profits will be higher, but in the long run, price will fall back to its original level and firms will again earn zero economic profit. C. in the short run, prices and profits will fall, but...
17.   Assume that a perfectly competitive industry is operating at its long run equilibrium. Then, the...
17.   Assume that a perfectly competitive industry is operating at its long run equilibrium. Then, the demand for its product increases. Which of the following best describes the SHORT RUN response? A.  market demand shifts right, firms' demand curves decrease, and output decreases. B.  market demand shirts right, firms' demand curves decrease, and output increases. C.  market demand shifts right, firms' demand curves increase, and output increases. D.  market demand shirts right, firms' demand curves increase, and output decreases. 18.   Assume that the increase...
32.   The relationship that indicates that the perfectly competitive firm in long-run equilibrium is economically efficient...
32.   The relationship that indicates that the perfectly competitive firm in long-run equilibrium is economically efficient is that A.   long-run marginal cost equals long-run average cost at long-run average cost’s lowest value. B.   the typical firm earns neither economic profits nor economic losses. C.   marginal benefit equals long-run marginal cost. D.   demand equals marginal revenue equals average revenue equals price. 33.   The perfectly competitive lobster market is in long-run equilibrium. Following an increase in demand we would expect the typical...
Consider a competitive market with identical firms that is in long-run equilibrium. Which of the following...
Consider a competitive market with identical firms that is in long-run equilibrium. Which of the following statements captures the sequence of events from the short run to the long run after demand increases? a.When demand increases, price rises in the short run, causing each firm to produce more and earn a profit. The profit induces entry of new firms into the market until price returns to its initial value and each firm earns zero profit. b.When demand increases, price falls...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT