Assume agricultural products are identical and there are many sellers and buyers of agriculture products:State the profit maximizing condition for each seller of agricultural products.Graphically, show the market equilibrium of the industry and a seller where economic profits equal zero. Please include marginal revenues, demand curve, price and quantity at the equilibrium.From part b above, if the number of buyers increases, show the new short run equilibrium for a seller and the industry as a whole.

Answered: Assume agricultural products are…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 16CQ

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Assume agricultural products are identical and there are many sellers and buyers of agriculture products:

State the profit maximizing condition for each seller of agricultural products.
Graphically, show the market equilibrium of the industry and a seller where economic profits equal zero. Please include marginal revenues, demand curve, price and quantity at the equilibrium.
From part b above, if the number of buyers increases, show the new short run equilibrium for a seller and the industry as a whole.

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