Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
1. Kennedy & Sons operates in a perfectly competitive market for smoke alarms. Kennedy & Sons is currently
earning short-run positive economic profits.
(a) Using correctly labeled side-by-side graphs for the smoke alarm market and Kennedy & Sons, indicate each of the following for both the market and Kennedy & Sons.
(b) In the graph in part (a) for Kennedy & Sons, indicate the area of economic profits that Kennedy & Sons is earning in the short run.
(c) Using a new set of correctly labeled side-by-side graphs for the smoke alarm market and Kennedy & Sons, show what will happen in the long run to each of the following.
(i) Long-run equilibrium price and quantity in the market.
(ii) Long-run equilibrium price and quantity for Kennedy & Sons.
(d) Assume that purchases of smoke alarms create positive externalities. Draw a correctly labeled graph of the smoke alarm market.
(i) Label the market equilibrium quantity as Qm.
(ii) Label the socially optimum equilibrium quantity as Qs.
(e) Identify one government policy that could be implemented to encourage the industry to produce the socially optimum level of smoke alarms.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more