subject
Business, 07.04.2020 19:41 blognero

According to an article by Sarah Witten published this May 18, 2018 on CNBC. com, birth rates in the U. S. have been falling since 2008, with the result that producers of baby diapers are experiencing an extended period of declining demand.

Assume that the baby diaper industry is perfectly competitive and in long run equilibrium in 2007. Assume each firm has a single diaper plant, and draw a graph of the market and of a representative firm. What characterizes this equilibrium?
Show the effects of the subsequent decline in the birth rate on price, quantities, and profits. What will the typical firm do in the short run?
Assuming a firm continues to operate its plant in the short run, what will it do in the long run? (You do not have to graph the long run.)
One strategy adopted by baby diaper producers is to switch plants from producing baby diapers to adult diapers, because the aging baby boom generation in the U. S. is rapidly increasing the percentage of people in the "over 65 years of age" category. Assume the market for adult diapers is perfectly competitive, draw it initially in long run equilibrium, and then show how the aging baby boom generation affects price, quantities, and profits.
Using graphs to illustrate your answer, explain what will happen to price, output, and profits in the adult diaper market in the long run. Include in your response any assumptions you make when predicting the level of long run price.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 17:00, eliezer25
Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .
Answers: 1
image
Business, 21.06.2019 22:40, eamber646
Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000
Answers: 3
image
Business, 22.06.2019 22:00, tannercarr3441
As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm. b. implicit costs. c. operating costs. d. fixed costs.
Answers: 2
image
Business, 22.06.2019 22:20, ciara180
Which of the following is correct? a. a tax burden falls more heavily on the side of the market that is more elastic. b. a tax burden falls more heavily on the side of the market that is less elastic. c. a tax burden falls more heavily on the side of the market that is closer to unit elastic. d. a tax burden is distributed independently of the relative elasticities of supply and demand.
Answers: 1
You know the right answer?
According to an article by Sarah Witten published this May 18, 2018 on CNBC. com, birth rates in the...

Questions in other subjects:

Konu
Social Studies, 26.10.2020 02:20
Konu
History, 26.10.2020 02:20