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- The SolarFarm powerplant has both fixed and variable costs. As the plant expands production, it first has constant returns to scale, and then diminishing returns to scale.(b) The government connects SolarFarm to a nearby town that is currently without electricity. Show in a new, large, graph how the market price and quantity of electricity sold change as a result.Sketch a supply curve that represents the supply of salt in the short run. Explainyour diagram? Add to your first diagram a long run supply curve for salt; explain your diagram.?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?
- Economics Answer "False" or "True" each of the following. Justify by relying on graphical analysis whenever possible. 3.- If the marginal income is greater than the marginal cost, the competitive company will increase its profits by increasing its production (we assume increasing marginal costs). 4.- An industry in which the production process can be done with increasing economies of scale (for any level of production) cannot be one of perfect competition. answer both asap thnxWhat is output per firm at the long-run equilibrium price? What is the long-run equilibrium profit?Question 2 You are the manager of medium-sized company that produces a particular kind of alcoholic beverage (BB Bitters) in Ghana. You purchased most ingredients such as ethanol on a competitive market. One morning, you picked up a copy of the Graphic Business, published by the Graphic Communications Group limited, and read an article indicating that the price of ethanol is expected to rise, forcing manufacturers to produce at a high unit cost. In addition, the article indicated that your competitors are expected to reduce the price per unit of Alomo Bitters. Based on this information, what can you expect to happen to the equilibrium price and equilibrium quantity of your product? Explain your answer with an appropriate diagram.
- In microeconomics long run equilibrium will prices rise or fallShow how could Market equilibrium be affected if the level of Technology is not used on effective way while the number of Consumers increased, ( the effect of Technology is higher than the other factor ) Enter your Answerexplain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is rising ?
- Will a perfectly competitive market display allocative efficiency? Why or why not?The Weinandt Family Farm in Wynot, NE raises livestock and grows crops. Commonly grown crops in Nebraska are corn and soybeans. Suppose you are helping a farm similar to the Weinandt Farm make decisions about how much corn to grow this year. As an agricultural product, the market for corn meets the requirements of a perfectly competitive market. A) Using the market data provided, create a market supply and demand graph. B) What are the market equilibrium price and quantity? C) Using the firm cost and quantity data, find FC, VC, ATC, AFC, AVC, and MC. Graph ATC, AFC, AVC, and MC. D) Based on your answers in part c, between which quantities is ATC minimized? E) Based on your answers in part c, between which quantities should the farm aim to produce? F) Using the lower of these two quantities, caculate TR, TR, and the firm’s economic profit or loss. G) Will the farm decide to grow corn or leave the fields bare? explain your answer H) Will farms enter this market, leave the market, or…The Weinandt Family Farm in Wynot, NE raises livestock and grows crops. Commonly grown crops in Nebraska are corn and soybeans. Suppose you are helping a farm similar to the Weinandt Farm make decisions about how much corn to grow this year. As an agricultural product, the market for corn meets the requirements of a perfectly competitive market. A) Using the market data provided, create a market supply and demand graph. B) What are the market equilibrium price and quantity? C) Using the firm cost and quantity data, find FC, VC, ATC, AFC, AVC, and MC. Graph ATC, AFC, AVC, and MC. D) Based on your answers in part c, between which quantities is ATC minimized? E) Based on your answers in part c, between which quantities should the farm aim to produce? F) Using the lower of these two quantities, caculate TR, TR, and the firm’s economic profit or loss. G) Will the farm decide to grow corn or leave the fields bare? explain your answer H) Will farms enter this market, leave the market, or…
