Start with a model of the situation before the crisis in Ukraine. Draw a model of a representative individual firm in the market for wheat, i.e. an Australian wheat farmer who is a price-taker in the global market for wheat, in long-run equilibrium. Comment on the assumed market structure. Show and explain the amount of wheat the farmer will produce to the market, and explain revenue, costs and profits

Start with a model of the situation before the crisis in Ukraine. Draw a model of a representative individual firm in the market for wheat, i.e. an Australian wheat farmer who is a price-taker in the global market for wheat, in long-run equilibrium. Comment on the assumed market structure. Show and explain the amount of wheat the farmer will produce to the market, and explain revenue, costs and profits

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

ANSWER IF TRUE OR FALSE: no need for long explanation. 1. The welfare of the consumers is maximized under a purely competitive market. 2. It is easy to exit or stop production if the market condition is no longer profitable if there is very low investment in fixed assets. 3. Patents and copyrights serve as barriers in entering an industry and in competing against the already existing producers.
Why is the perfect competition often used as a benchmark? Question 3 options: The perfect competition model is more frequently observed in the real world compared to other market models It provides a useful comparison to markets that operate in more complex, real-world conditions. It accounts for a variety of issues like pollution, inventions of new technology, poverty, and government programs that other models do not account for. In the real world, all markets are perfectly competitive, so this model allows us to compare them to one another.
Business Economy Q1. Telecommunication (broadband) in Singapore, comparing each film (Singtel vs M1 vs Starhub vs others):Discuss the Structure-Conduct-Performance paradigm – how Market Structure (number of firms competing in an industry, relative size of firms (concentration), demand conditions (price elasticity of demand) and ease of firm exit or entry) of an industry affects the Conduct of firms (how individual firms behave in the market and involves pricing decisions and advertising decisions) and results in the firm’s Performance (profits and social welfare).
All economic market structures earn normal profit and are considered to be in the long run when Question 19 options: a) Price equals marginal cost b) Price equals average total cost c) Price equals marginal revenue d) Price equals average revenue
Which statement about market structure and innovation is true? a. Innovation helps only dominant firms. b. Innovation keeps new firms from ever catching up with leading firms. c. Innovation often leads to creative destruction and the replacement of established firms by new firms. d. Innovation always leads to entrenched monopoly power.
Many large corporations, such as General Motors and Apple, operate in markets that are not even close to perfectly competitive. But unlike the products these companies sell, shares of these firms’ common stock are bought and sold in what could be described as a perfectly competitive market. Based on the three conditions that make a market perfectly competitive, what characteristics of the purchase and sale of shares of stock of a large company like GM or Apple, are consistent with perfect competition?
1.) Which one of the following sets of circumstances could the existence of economies of scale cause in a market? a.) More firms looking to move overseas. b.) Firms merging with and buying out other firms in their markets, thus leading to an increase in market competition c.) More american overseas firms will decide to come home. d.) None of the three other possible answers listed here are correct.
Choose the one alternative that best that answers the question. Assume the market for organic produce is perfectly competitive. All else being equal, as more farmers choose to produce and sell organic produce, in the long-run, Select one: a. The equilibrium price is likely to increase, and profits are likely to remain unchanged. b. The equilibrium price is likely to remain unchanged, and profits are likely to increase. c. The equilibrium price is likely to decrease, and profits are likely to decrease. d. The equilibrium price is likely to increase, and profits are likely to increase. e. Both the equilibrium price and quantity are likely to remain unchanged.
You are the manager of an international firm headquartered in Antarctica. You are contemplating a business tactic that will permit your firm to raise prices and increase profits in the long run by eliminating one of your competitors. Do you think it would make economic sense to expend resources on legal counsel before implementing your strategy? Explain
Multiple choice questions - Microeconomics 37)In a market that allows free entry and exit, when does the process of entry and exit end for the typical firm in the market? A. when average revenue exceeds marginal cost B. when total revenue is equal to average total cost C. when accounting profit is zero D. when economic profit is zero 36)
Identify an article from the Wall Street Journal within the last six weeks that relates to one of the following topics: (1) Factors in an organization's external environment that had an impact on the organization. (2) Factors in an organization's internal environment that had an impact on the organization. (3) An article that provides examples of an organization exploiting the resources of a competitor to strengthen its competitive advantage. First, Summarize the article Next, Discuss what you found interesting, educational, insightful, etc.? Then, Discuss how the article you found relates to the material you read for this week. Summarize your post. You should not type the questions, the discussion post should flow as one document. Think of my directions as writing prompts. Each paragraph needs at least 4-5 sentences
Referring to the concept of an "invisible hand" allocating resources across industries in response to economic profits and losses. 1. Give an example of an industry that has been growing in response to economic profits. 2. Give an example of an industry that has been shrinking in response to economic losses.…