micro economics

1) Assume that the gold-mining industry is competitive.
a) Illustrate a long-run equilibrium using diagrams for the gold market and for the a representative gold mine.
b) Suppose that an increase in jewellery demand induces a a surge for in the demand for gold. Using your diagrams from part a), show what happens in the short run to the gold market and to each existing gold mine.
c) If the demand for gold remains high, what would happen to the price over time? Specifically, would the new long-run equilibrium be above, below or equal to the short-run equilibrium price in part b)? Is it possible for the new long-run equilibrium price to be above the original long-run equilibrium price? Explain.

  1. 👍 0
  2. 👎 0
  3. 👁 794
  1. assume that the gold-mining industry is compitative

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    . Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the

  2. Earth Science

    1. Which term refers to the way light interacts with the surface of a rock or mineral? cleavage- luster density hardness 2.What will happen in an area where large deposits of a desired mineral are found? Select the two correct

  3. Economics

    you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is

  4. Science

    1. Which term refers to the way light interacts with the surface of a rock or mineral? cleavage- luster density hardness 2.What will happen in an area where large deposits of a desired mineral are found? Select the two correct

  1. economics

    perfectly competitive industry. Each firm having identical cost structures. long-run average cost is minimized at an output of 20 units. Minimum average cost is $10 per unit. total market demand is Q=1500-50P. What is the long-run

  2. Economics

    Suppose that some firms in a competitive industry are earning zero economic profits, while others are experiencing losses. All else equal, in the long run, we would expect the number of firms in the industry to A. increase. B.

  3. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential

  4. Economics

    Suppose that there are 1,000 hot-pretzel stands operating in Toronto. Each stand has the usual U-shaped average total cost curve. Both the market demand curve and the supply curve for pretzels are linear, and the market for

  1. Economics

    For the following characteristic say whether it describes a perfectly competitive firm, a monopolistically competitive firm, monopoly firm, or neither. a. Has marginal revenue less than price. I would think this would be neither.

  2. MicroEcon

    The market for apple pies in the city is competitive and has the following demand schedule: Price Quantity Demanded $1 1,200 2 1,100 3 1,000 4 900 5 800 6 700 etc... 13 0 Each producer in the market has fixed costs of $9 and the

  3. Microeconomics

    A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long run average cost is minimized at an output of 10 units (qi=10 ). The minimum average cost is R5

  4. Economics

    A long-run supply curve is flatter than a short-run supply curve because A. firms can enter and exit a market more easily in the long run than in the short run. B. long-run supply curves are sometimes downward sloping. C.

You can view more similar questions or ask a new question.