The Demand for Pizzas in the Local Market Is Given

question 133

Essay

The demand for pizzas in the local market is given by: There are 100 pizza firms currently in the market. The long-run cost function for each pizza firm is: where w is the wage rate pizza firms pay for a labor hour and q is the number of pizzas produced. The marginal cost function for each firm is: If the current wage rate is $7 and the industry is competitive, calculate the optimal output of each firm given each firm produces the same level of output. Do you anticipate firms entering or exiting the pizza industry? Suppose that the wage rate increases to $8.40. Calculate optimal output for each of the 100 firms. Do you anticipate firms entering or exiting the pizza industry? What happens to the market output of pizzas with the higher wage rate? What happens to the market price for pizza?

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Definitions:

Synaptic Pruning

A natural process in brain development where extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Smaller-Brained Animals

Animals with relatively small brain sizes, often implying differences in cognitive capacities and behaviors.

Influenced By Drugs

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Human Cerebral Cortex

The outer layer of the human brain involved in higher functions such as thought, memory, and consciousness.