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ECO550 Assignment 2

# ECO550 Assignment 2 - Week 5 Assignment#2 ANSWERS Course...

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Week 5 Assignment #2 ANSWERS Course: Managerial Economics and Globalization (ECO 550), WINTER 2010. SECTION 003016 Directions answer all Questions: Please post the answers to Questions 1 , 2, 3, 4, 5 in the ANSWER BOX below 1.A product's Demand Curve is: Qd = - P + 25, and its Supply Curve is: Qs = 10 + 2P. Algebraically determine the equilibrium price and quantity. 2.The figure below shows a firm in a perfectly competitive market: (No explanation needed. Please provide the answer(s) only. Thanks. a. Determine the Shut- down Price b. Identify the firm’s short run Supply curve ( must specify the letters representing the supply curve .) 1

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3.Fill in the blanks to complete the following statements. "Assume a perfectly competitive market is initially in long - run equilibrium. In the short run, a decrease in raw  materials prices will cause the firm's average costs to (a)_ decrease _ .  As a result, the profits of existing firms will (b)  _ increase _. However, over the long run, this will cause the number of firms in the market to (c)._
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ECO550 Assignment 2 - Week 5 Assignment#2 ANSWERS Course...

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