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, it shows 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.

1. Agriculture is an example of perfect competitive market. The profit maximizing condition of a…

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

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 5CQ

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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, it shows 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.

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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