The following graph shows the output for Pat, a profit-maximizing corn farmer. 1. Suppose the corn market consists of 1000 farms, including and identical to Pat's. In the table below determince the supply in column 2. 2. If the market demand for corn is shown in column 3 of the table below, at equilibrium price how much will Pat produce? Is she generating a profit or a loss ? How much will the market produce? Is the market genearting a profit or a loss ?3. Given the results from part (b), what will happen to the corn market in the long run ? CHAPTER EIGHT I Perfect Competition18. The following graph shows the output for Pat, a profit-maximizing corn farmerМCАТC81AVC2I1048161220Quantity (tonnes per year)a. Suppose the corn market consists of 1000 farms, including and identical toPat's. In the table below, determine the market supply in column 2b. If the market demand for corn is as shown in column 3 of the table below, atequilibrium price how much will Pat produce? Is she generating a profit or a loss?How much will the market produce? Is the market generating a profit or a loss?(3)(2)(1)Market Supply(tonnes per year)Market DemandPrice(tonnes per year)($)19 O00215 000412 000610 00087 00010Givennhe resuits from part (b), what will happen to the corn market in thelong tun nnerPrice and Cost(S per unit)10CO

A firm’s short run supply function is the increasing part of its short run marginal cost curve above…

Answered: CHAPTER EIGHT I Perfect Competition 18.…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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The following graph shows the output for Pat, a profit-maximizing corn farmer.

1. Suppose the corn market consists of 1000 farms, including and identical to Pat's. In the table below determince the supply in column 2.

2. If the market demand for corn is shown in column 3 of the table below, at equilibrium price how much will Pat produce? Is she generating a profit or a loss ? How much will the market produce? Is the market genearting a profit or a loss ?

3. Given the results from part (b), what will happen to the corn market in the long run ?

CHAPTER EIGHT I Perfect Competition
18. The following graph shows the output for Pat, a profit-maximizing corn farmer
МC
АТC
8
1
AVC
2
I
1
0
4
8
16
12
20
Quantity (tonnes per year)
a. Suppose the corn market consists of 1000 farms, including and identical to
Pat's. In the table below, determine the market supply in column 2
b. If the market demand for corn is as shown in column 3 of the table below, at
equilibrium price how much will Pat produce? Is she generating a profit or a loss?
How much will the market produce? Is the market generating a profit or a loss?
(3)
(2)
(1)
Market Supply
(tonnes per year)
Market Demand
Price
(tonnes per year)
($)
19 O00
2
15 000
4
12 000
6
10 000
8
7 000
10
Givennhe resuits from part (b), what will happen to the corn market in the
long tun nner
Price and Cost
(S per unit)
10
CO

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