Exam 22: A: Industry Supply

In Problem 13, in the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana seized is .20 and the fine if a shipper caught is $45 per ounce, then the equilibrium price of marijuana per ounce is

Suppose that the garden gnome industry was in long-run equilibrium given the circumstances described in Problem 1. Suppose, as in Problem 2, that it was discovered to everyone's surprise on January 1, 1993, after it was too late to change orders for gnome molds, that the cost of the plaster and labor needed to make a gnome had changed to $6. If the demand curve does not change, what will happen to the equilibrium price of gnomes?

In Problem 13, in the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana seized is .10 and the fine if a shipper caught is $20 per ounce, then the equilibrium price of marijuana per ounce is

Suppose that the garden gnome industry was in long-run equilibrium as described in Problem 1. On January 1, 1993, the cost of plaster and labor remained at $7 per gnome, gnome molds still cost $1,000, and the interest rate remained at 10%, but the government introduced a tax of $9 on every garden gnome sold. Then the equilibrium price of garden gnomes in 1993 would be

In Problem 1, if the cost of plaster and labor were $10 per gnome and everything else is as in the problem (gnome molds cost $1,000, interest rate is 10%), what is the lowest price of gnomes at which there would be a positive supply in the long run?

In Problem 8, the supply curve of any firm is S_i(p) = . If a firm produces 3 units of output, what are its total variable costs?

In Problem 13, in the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana seized is .50 and the fine if a shipper caught is $40 per ounce, then the equilibrium price of marijuana per ounce is

In Problem 8, the supply curve of any firm is S_i(p) = . If a firm produces 5 units of output, what are its total variable costs?

In Problem 1, if the cost of plaster and labor were $5 per gnome and everything else is as in the problem (gnome molds cost $1,000, interest rate is 10%), what is the lowest price of gnomes at which there would be a positive supply in the long run?

Suppose that the garden gnome industry was in long-run equilibrium as described in Problem 1. On January 1, 1993, the cost of plaster and labor remained at $7 per gnome, gnome molds still cost $1,000, and the interest rate remained at 10%, but the government introduced a tax of $4 on every garden gnome sold. Then the equilibrium price of garden gnomes in 1993 would be

Suppose that the garden gnome industry was in long-run equilibrium as described in Problem 1. On January 1, 1993, the cost of plaster and labor remained at $7 per gnome, gnome molds still cost $1,000, and the interest rate remained at 10%, but the government introduced a tax of $4 on every garden gnome sold. Then the equilibrium price of garden gnomes in 1993 would be

In Problem 8, the supply curve of any firm is S_i(p) = . If a firm produces 2 units of output, what are its total variable costs?

In Problem 1, if the cost of plaster and labor were $13 per gnome and everything else is as in the problem (gnome molds cost $1,000, interest rate is 10%), what is the lowest price of gnomes at which there would be a positive supply in the long run?