The accompanying graphs represent the market for soybeans, a perfectly (purely) competitive market, and Roy's Soys, an individual firm in the market for soybeans. The market and the firm are currently in long-run equilibrium at point A. Soybean market Roy's Soys 20 20 Price 2 Price 3 19 19 Marginal cost 18 Short-run supply 18 17 17 16 16 15 15 14 14 13 13 12 12 Average total cost * 11 10 11 10 Long-run supply Price 4 Demand 1. 01234 56789 10 11 12 13 14 15 16 17 18 19 20 Quantity (millions of bushels) 0123 456789 10 11 12 13 14 15 16 17 18 19 20 Quantity (hundreds of bushels) Price (S) (S) aod

The accompanying graphs represent the market for soybeans, a perfectly (purely) competitive market, and Roy's Soys, an individual firm in the market for soybeans. The market and the firm are currently in long-run equilibrium at point A. Soybean market Roy's Soys 20 20 Price 2 Price 3 19 19 Marginal cost 18 Short-run supply 18 17 17 16 16 15 15 14 14 13 13 12 12 Average total cost * 11 10 11 10 Long-run supply Price 4 Demand 1. 01234 56789 10 11 12 13 14 15 16 17 18 19 20 Quantity (millions of bushels) 0123 456789 10 11 12 13 14 15 16 17 18 19 20 Quantity (hundreds of bushels) Price (S) (S) aod

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

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