This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You ... (Read 53 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
on: Jun 29, 2018
Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You are willing and able to pay the current market price of 300 for a camera, but you cannot find any available.
 
  Is the market for the digital camera in equilibrium? If not, is the market equilibrium price of the camera above or below 300? Use supply and demand analysis to explain your answer.

Question 2

What is meant by increasing returns to scale?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ong527

  • Sr. Member
  • ****
  • Posts: 285
Reply #1 on: Jun 29, 2018
Answer to Question 1

No, the market for the digital camera is not currently in equilibrium because there is a shortage of the camera at the current price of 300 . This implies that the market equilibrium price is greater than 300 .

Answer to Question 2

Increasing returns to scale implies that an increase in the firm's scale of production leads to lower average costs per unit produced.


CORALGRILL2014

  • Member
  • Posts: 525
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Eighteen-year-olds were the largest age cohort in the first year of the war in both armies. Soldiers Eighteen-year-olds were the largest age cohort in the first year of the war in both armies. Soldiers
The digital image of a fetus shows a well-developed head and a comparatively smaller body. At 7 ... The digital image of a fetus shows a well-developed head and a comparatively smaller body. At 7 ...
A Hall-effect sensor produces a digital on-off voltage signal whether it is used with a blade or a ... A Hall-effect sensor produces a digital on-off voltage signal whether it is used with a blade or a ...
Digital rectal examination to detect abnormalities of the prostate gland. Digital rectal examination to detect abnormalities of the prostate gland.
La Niña events store energy La Niña events store energy
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Video: Dietary Cholesterol & LDL

For a complete list of videos, visit our video library