Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $22 per box.Farmer Brown's marginal cost of production is illustrated in the table.MarginalBoxes ofPeachesMarket Price(per box)$22Cost (MC)1226.002223.003229.0042218.002236.0054.0022What price will farmer Brown charge when maximizing profit?Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.)What is farmer Brown's profit-maximizing level of output?Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)

Since Brown is a perfect competition, Farmer Brown will charge the price of $22 per box of peaches.…

Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $22 per box. Boxes of Peaches Market Price (per box) $22 Marginal Cost (MC) 22 22 6.00 3.00 9.00 18.00 3 22 22 4 22 36.00 22 54.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)

Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $22 per box. Boxes of Peaches Market Price (per box) $22 Marginal Cost (MC) 22 22 6.00 3.00 9.00 18.00 3 22 22 4 22 36.00 22 54.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

See similar textbooks

Similar questions

Will a perfectly competitive market display allocative efficiency? Why or why not?
Consider the table of marginal costs of producing t-shirts in a perfectly competitive market below. If the market price is equal to $8, what is the profit maximizing number of t-shirts to produce and sell? Note the second column describes marginal costs. T-shirts Marginal Cost 0 - 1 6 2 3 3 6 4 9 5 11 6 14 Group of answer choices 0 1 2 3 4 5 6
Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the following table. The market price of an apple is $0.50. a. Does this suggest that the marginal cost of apples is increasing, decreasing, or staying the same as the quantity of apples picked increases? Why? b. Complete the table. c. How many apples does Sam pick?
Assume a number of street vendors sell hamburgers in a city. Each vendor has a marginal cost of 30 NOK per hamburger sold and there are no fixed costs. The maximum number of hamburgers that any vendor can sell is 100 per day. a) If the market is perfectly competitive and the price of each hamburger is 40 NOK. How many hamburgers does each street vendor want to sell and what is each vendor’s profit per day assuming the desired quantity is sold?b) Why is this solution not a long run equilibrium?c) Suppose all the vendors merges and thus appears as a monopolist in the market. After merging marginal cost is constant. Make a diagram and explain the optimal solution for the monopolist.d) How can you explain that the solution from c) is such that the profit is maximized?e) Explain the social costs of the monopoly situation in this market. f) Suppose many consumers in this hamburger market became “addicted”. How would you explain this change in consumers demand and how would it affect social…
Consider the market for wheat which is a perfectly competitive market. Is the market demand curve the same as the demand curve facing an individual producer? If not, explain how and why they are different.
Which of the following is an example of a perfectly competitive market?
Suppose that purely competitive firms producing cashews discover that P exceeds MC. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency? In the long run, what will happen to the supply of cashews and the price of cashews? Use a supply and demand diagram to show how that response will change the combined amount of consumer surplus and producer surplus in the market for cashews.