Market Structure Chart Worksheet Sneaker Firm (monopolistic) 1a Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit maximizing price and quantity. 1b The price of rubber decreases. Rubber is a major component in the production of sneakers. Draw a new graph that shows the change in the profit maximizing price and quantity of sneakers. Be sure to shade the area of loss or profit. Since production costs have decreased, the sneaker company can lower the price of the sneakers. If this happens, demand will increase, which is represented in the graph. It would result in a lower equilibrium price and higher equilibrium price.
Potato Farm (perfectly competitive) 2a Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit
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- Fall '19