This topic contains a solution. Click here to go to the answer

Author Question: Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You ... (Read 16 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
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
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
YES! Correct, THANKS for helping me on my review


Bigfoot1984

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

For a complete list of videos, visit our video library