a)Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly competitive industry. Draw the industry supply and demand curves and the demand curve for a single wheat farmer. Explain why the wheat farmer is a price tracker.
Q: Economic profits in a perfectly competitive industry will encourage entry of new firms, which will…
A: Perfectly competitive market is characterized by large number of firms.
Q: Assume agricultural products are identical and there are many sellers and buyers of agriculture…
A: It is given that, the agricultural products are identical and there are many buyers and sellers of…
Q: Assume that the market for Wheat is perfectly competitive in a country. Each firm operating in the…
A: a. In the short run a firm shut down its operation when its price is lower than the average variable…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: In a perfectly competitive market, the profit-maximizing quantity is at that at which price is equal…
Q: S;(p) p/2. a. Plot and label the four industry supply curves generated by these firms if there are…
A: Given, Supply curve, S(p) = P/2. a) The supply curve for each firm are:…
Q: A new TV and film internet-only streaming service has just launched called FabFlix. Executives…
A: A perfect competition is a market structure in which many vendors and buyers are present. In this…
Q: 9.3. Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Find short run industry supply for 60 firms, in perfect competition. Each with TC = 5q + 15q^2 +20…
A: Each firm sells at a point where price is equal to marginal cost Equilibrium in the market occurs…
Q: Given P = 300 + 200Qs (demand equation), P = 6300 − 50Qd (supply equation), and TC = 500 + 10Q +…
A: P = 300 + 200Qs (demand equation) P = 6300 − 50Qd (supply equation)
Q: A national campaign to fight obesity runs advertisements during Thanksgiving reducing market demand…
A: Profit maximizing quantity is where marginal revenue equals marginal cost. Long run equilibrium for…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A: The rise or decrease in the cost of producing one more item or serving one more client is referred…
Q: A perfectly competitive industry is composed of 100 identical firms with cost structure: q…
A: The variable cost can be calculated by using the below formula: If Q is 1 and TC is 8, then the…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…
A: Price is equal to marginal revenue (MR). Equilibrium output can be calculated as follows.…
Q: MC is...............and the MC cuts the LRAC at q=..........
A: MC is the marginal cost. MC = ∂TC/∂q LRAC is the long run average cost. LRAC = Total Cost (TC) * q…
Q: In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost…
A: QD= 140000 - 10000P Qs= 80000 + 5000P Lowest point of average cost curve in long run $4. Quantity of…
Q: Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: PRICE a…
A: In a perfectly competitive market, there are many buyers and sellers. Firms produce identical goods…
Q: Consider a perfectly competitive market depicted by the two figures below: (on the left) the…
A: Ans. Under a perfectly competitive market, the profit maximization level for a firm is where P = MR…
Q: Why is the equality of marginal revenue and marginal cost essential for profit maximization in all…
A: Firms operate with the ultimate objective of profit maximization. Profit is the excess of revenues…
Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal…
A: Equilibrium in the market occurs where demand and supply are equal
Q: What is the profit maximizing level of output for the firm? How much profit is this firm earning?…
A: Profit maximizing level of output is achieved where price and quantity are equal i.e., in…
Q: Suppose you are managing a firm in a perfectly competitive industry. Your demand, supply and cost…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…
A:
Q: hey i need help with my homework
A: When there is an increase in demand in a competitive firm, the new equilibrium point shifts to B and…
Q: A perfectly competitive industry consists of many identical firms, each with a long-run total cost…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: Table 9.1 Output (Q) Total Fixed Costs Total Variable Costs 0 20 0 1 20 5 2 20 7 3 20 10 4 20 15 5…
A: Perfect competition is a situation where firms are price takers. Shut down rule suggest that When…
Q: Define or describe the following competitive supply and profit maximisation economic terms: 6.3.1…
A: The economics as a study is based upon the basic idea that the resources which are present with the…
Q: Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning…
A: Perfect competition: Perfect competition occurs in economic theory when all firms sell identical…
Q: Consider a perfectly competitive industry, where the current equilibrium price is p*=16 and the…
A: Given; P=16 Q=600 MC=4q AC=2q+5q
Q: draw a short run firm and industry competitive equilibriums for a perfectly competitive…
A: It is given that the alligator-farming industry is perfectly competitive and earns zero economic…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: A firm in perfect competition maximizes profit where: Price = Marginal Cost Producer Surplus is…
Q: Assume agricultural products are identical and there are many sellers and buyers of agriculture…
A: 1. Agriculture is an example of perfect competitive market. The profit maximizing condition of a…
Q: In a perfectly competitive market, industry demand is given by Q = 1000 - 2OP. The typical fırm's…
A: Industry demand is given as Q = 1000 - 20P Total Cost is given as TC = = 300 + Q2 /3 Marginal Cost…
Q: The AC and MC values for firms in a perfectly competitive industry are as follows: Q AC MC 1 12 2 8…
A: In perfect competition, the firm produces at where price (or MR) equal to the marginal cost. It is…
Q: Why is the equality of marginal revenue and marginal cost essential for profifit maximization in all…
A: Marginal revenue is defined as the additional revenue generated from the sale of an extra unit of…
Q: A perfectly competitive firm's short-run supply curve is the same as Selected Answer: b. the market…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…
A: We are given , TC = 50 + 10q + 2q2 Since the firm sells it's product in a perfectly…
Q: In the short run, in a perfect competition market structure, if P>ATC which of the following will…
A: In the short run, the interaction between demand and provide determines the “market-clearing" price…
Q: Why is the equality of marginal revenue and marginal cost essential for profit maximization? Explain…
A: In the production process, different inputs are used to produce the final output. A firm always has…
Q: A perfectly competitive industry has a large number of potential entrants. Each firm has an…
A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: 3. Suppose that the market demand for a product is given by Q = A- BP (A>0 and B > 0). Suppose also…
A: a) Market Demand Function Q = A- BP (A 70, B70) Cost function of firm= c(q) = k +aq+ bq2 MC for a…
Q: The following relations describe demand and supply conditions in an industry.…
A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…
A: We are authorized to answer three subparts at a time since you have not mentioned which part you are…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…
A: Given:Price (P)= $90MC = 10+4Q
Q: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which…
A: Answer:- (B) Firms to leave the industry, market supply to fall, and product price to rise.
Q: Illustrate the relationship between marginal cost, a competitive firm’s shortrun supply curve, and…
A: In a competitive firm, the profit is maximized when MR = MC. The supply curve of a competitive firm…
Q: Shazam, a maker of magic wands, is selling in a purely competitive market. Its output is 600 wands,…
A: Given, Output = 600 wands Price = $8 Marginal cost (MC) = $8 Average total cost = $20…
a)Suppose the
competitive
single wheat farmer. Explain why the wheat farmer is a price tracker.
b) In which form of market structure would price be the key factor when competing? Explain
why?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- suppose the market equilibrium price of wheat is rs.2 per bushel in a perfectly competitive industry.draw the industry supply and demand curves and the demand curve for a single wheat farmer.explain why the wheat farmer is a price tracker.Employ the production cost theory to explain why we consider the Fruit & VegetableMarketin Al-Aweer to have a perfect competition structure.Explain what is meant by a perfect competitor has no market power as applied to power system economics.
- Perfect competition is a theoretical market structure in which the followingcriteria are met: All firms sell an identical product. All firms are price takers.Market share has no influence on prices. Given the characteristics describedabovei. Describe the factors that drive profits to zero in perfectly competitivemarkets in the long run. Explain carefully the incentives that drive themarket to a long run equilibrium. ii. Why would a firm choose to operate at a loss in the short run? iii. When do firms decide to shut down production in the short run?The wireless data industry, in which firms compete vigorously against one another for customers, is not considered a perfectly competitive industry. You can choose multiple answers Which of the following industry characteristics make the wireless data industry a non-perfectly competitive industry? A.For wireless firms, long-run economic profits are possible. B.Substantial barriers to entry prevent new firms from entering the wireless market. C.The market is dominated by a few very large wireless firms. D.Wireless firms provide a homogeneous product.Please answer all 1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred Group of answer choices a. Sunk costs b. Average costs c. Opportunity costs d. Marginal costs 2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? Group of answer choices a. Potential buyers will lose buying power at the dealer b. It may sell the remaining cars at huge discounts to hit the quota c. It creates an incentive to sell cars from different manufacturers d. It would ruin the relationship between dealer and manufacturer…
- Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a homogenous product) is given by the following equations respectively: Qd = 50 − P Qs = 1 + 3P The typical firm’s total cost is given by the following equation: TC = 10 + 0.5Q2 + 5Q What is the profit maximizing level of output for the firm? How much profit is this firm earning? Show it graphically Is it short run or long run? Explain!Perfect CompetitionFirm cost equation: TC = 64 - 4Q + Q2Market demand: Q = 648 - 4PSolve for how many firms serve the market. Enter as a value.Show a firm that is earning zero economic profits, but has some market power. Then, assume this market power is entirely eliminated when a new competitor enters the market with the same technology and produces a perfect substitute. Showing in your diagram how the firm must adjust its production level to most effectively compete with the new entering firm, explain why maintaining competition is important.
- Brand X is one of many firms in a competitive industry where each firm has a constant marginal cost of 2 dollars per unit of output. If marginal cost for Brand X rises to 4 dollars per unit and marginal costs of all other firms in the industry stay constant, by how much does the price in the industry increase? a. 2 dollars b. 1 dollar c. 0 dollar d. 2/n, where n is the number of firms in the industry e. None of the above.In a competitive market, the long-run demand is given by P = 20 - (0.01)*q Firms in the industry have as their cost structure the expression C = q3 - 5q2 + 10q. Determine: (a) equilibrium price b) Quantity produced-sold of the firm. c) What quantity is traded in the market? d) Over what time period does this market work? (short or long term?) e) What is the profit of the individual firm? f) What will be the behavior of the individual firm, will it exit or stay in the market?A new TV and film internet-only streaming service has just launched called FabFlix. Executives behind this launch are hoping to brand it as the number one choice for home streaming. Answer the following questions True or False and explain your answer with a single sentence. Compared to perfect competition, this industry would be characterized with: i. Higher prices ii. Higer output iii. Greater price elasticity iv. Higher concentration v. Greater product differentiation