Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 12, Problem 5SPA
To determine
The market
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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…
In the U.S. economy consumers and producers are equally responsible for market prices and the number of units purchased (sold) in markets. Neither group has more market power than the other. Explain why you either agree or disagree with this statement.
Chapter 12 Solutions
Microeconomics (13th Edition)
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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- A firm collect $300 by selling 5 bicycle and collect $330 by selling 6 bicycle. Is this seller in a perfectly competitive market?arrow_forwarda) Imagine that the price of input 1 is $16 per unit, the price of input 2 is $25 per unit, and the firm has fixed costs of $60. The firm is in a competitive market where the market price is $240 per unit of output. How much should the firm produce? How much profit does the firm make?arrow_forwardFirm Profit, Loss, and Shut Down Based upon the graph, answer the following questions: 1) What is the production level that will maximize the profit for the firm? 2) What is the profit-maximizing price the firm will charge? 3) Will the firm incur an economic gain or economic loss? 4) What will the dollar amount of economic gain or economic loss be? 5) What will be the price and quantity where the firm will shut down?arrow_forward
- Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?arrow_forwardExamine the market structure of the corn market. Draw a suitable corn market and also an individual farmer’s demand and supply diagrams to illustrate the initial situation in the corn market where all farmers are earning normal profit.arrow_forwardIdentify and discuss the main features of the perfectly competitive market along with the basic demand and supply framework. 2. Carefully explain why the perfectly competitive market and the basic framework of supply and demand, examined in part one is not sufficient to analyze the market for health care. 3. Using illustrations, briefly discuss five (5) determinants of health.arrow_forward
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