A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1000 bushels of wheat, the second acre 900, the third 800, and so on. Draw a table with multiple columns to help you answer the following questions. How many bushels will each of the farmer's five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? If the marginal cost of planting and harvesting an acre is $7000 per acre for each of the five acres, how many acres should the farmer plant and harvest?
Q: Why perfect competition is allocatively efficient, the price that people are willing to pay…
A: Perfect competition is a market structure in which there are many buyers and sellers, all selling…
Q: fer to Figure 21-12. Suppose that a consumer is originally at point R. Then the price of good X…
A: The substitution effect measures the change in quantity demanded of a good due to a change in the…
Q: Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States…
A: The number of employees that companies are ready to recruit at various wage levels is reflected in…
Q: Suppose you are given the following demand data for a product. Price $10 9 8 7 6 Quantity Demanded…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: The table below provides elasticity estimates, use them to answer the questions that follow. Type of…
A: The price elasticity provides the percentage change in quantity demanded or supplied when there is a…
Q: Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly…
A: Explicit Costs are tangible, out-of-pocket expenses that a firm or an individual incurs when making…
Q: An increase in 1 billion dollars in savings in the economy would result in O an increase in M1 only…
A: It can be defined as the concept of the financial market that represents a form of deposit in which…
Q: 5. Discrimination in the labor market The following table lists the name, gender, height, and…
A: The wage rate is defined as the rate of wage given to a worker based on the hours worked. It is the…
Q: MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) 20 18 16 14 12 10 8 A O 0 1…
A: The marginal benefit is the maximum amount that is willing to pay for an additional unit of goods…
Q: 2. A company that produces lawn chairs uses market surveys and linear regression to develop a demand…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Consider the Phillips curves depicted in the graph above. The Fed announces its intention to…
A: Philips curve refers to the graphical representation that depicts the inverse relationship betwen…
Q: Draw a graph representing a business cycle and mark the points or areas of potential GDP, full…
A: The business cycle shows the economic activities or aggregate economic fluctuations in the…
Q: The table below shows nominal and real GDP figures for a hypothetical economy. Note that 2022 is the…
A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…
Q: Movement along Big Oaks Production Possibilities Frontier A to B B to C C to D D to E E to F Gain in…
A: Marginal advantage refers to the extra satisfaction, utility, or cost that an individual or entity…
Q: $ per meal 22 20 18 16 14 12 10 8 6 4 2₁ 10 30 B D A MSC/MPC MPB-MSB Meals per hour 130 50 70 90 A…
A: Marginal private cost: It is the additional cost of producing one extra unit of good or service,…
Q: Find the value of x that makes the equivalent annual worth in years 1 through 8.00 equal to $700 per…
A: Given cash flow schedule is presented in the table below:YearCash…
Q: your marketing research department estimates that the log-linear demand function for your product is…
A: Estimated demand function : qd = 8.7 - 1.6 ln (p)Standard error of the coefficent for lnp is 0.3
Q: If when real GDP equals $800 billion, imports equal $100 billion, and when real GDP equals $900…
A: When real GDP is $800 billion then imports =$100 billionWhen real GDP is $900 billion then imports…
Q: Begin with the market for slushies in equilibrium. What will happen to demand if the price of sugar…
A: Complementary goods have to be consumed together in order to satisfy the consumer.The demand for one…
Q: QUESTION 2 1. The situation in which the average of all prices of products is rising is called…
A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Q: The market for Good X is depicted below. P P₁ Po P₁ P₁ P3 P₂ Po Qo Market for Good X MCso MCPB MB Q…
A: Marginal Social Cost (MSC) refers to the total cost impacted on society due to the production of an…
Q: QUESTION 27 If the price of gasoline has increased from $2 per gallon to $4 per gallon at the same…
A: Inflation-adjusted price, also known as the real price, refers to the price of a good or service…
Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: The circular flow model is a simplified depiction of the flow of goods, services, and money within…
Q: Figure 18-1 Price per unit P₂ P₁ F GE H G 0₁ 0₂ S+ Sales tax Demand Refer to Figure 18-1. Area F+G…
A: Government can reduce the supply of a good by imposing regulations or taxes that increase the…
Q: When a wave of people (such as the baby boomers) ages through a span of years in an economy, do they…
A: Aggregate Demand:Aggregate Demand is when the total number of consumers have the desire to buy…
Q: Discuss how the income of a U.S. citizen working in a foreign country is accounted for in GDP.
A: The monetary measure that depicts the total value of all final produce within a country's borders…
Q: The elasticity of demand is ε = (Enter your response rounded to one decimal place and include a…
A: The elasticity of demand is calculated by taking the ratio of percentage change in quantity demanded…
Q: O A D Figure 7-17 B OC 92 PI B C > D 01 Supply Refer to Figure 7-17. Which area represents producer…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: (a) If the company bases monthly orders on the expected value of the monthly demand, what should…
A: Expected Value provides a way to predict the long-term average of a random variable over many trials…
Q: Ritesh does not own any shares of MMM company so he sells 100 shares short. His execution price for…
A: Shares, also known as stocks or equity, represent ownership in a company or corporation. When an…
Q: Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will…
A: The cost for the first quarter is $80. Value of A1 =80Thereafter the cost increases by $2 each…
Q: Suppose that real GDP grew at 4% for three years. In year 4, real GDP growth fell smoothly to -2%,…
A: Real GDP, or Gross Domestic Product at regular prices, is a measure of the whole financial output or…
Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…
A: An annuity is defined as a series of payments which are of fixed amounts at fixed intervals.There…
Q: 3. Using the graph below, show the market equilibrium when a $30 per-unit tax is imposed. 4. What…
A: The loss of economic efficiency that occurs when the equilibrium of a market is not at the optimal…
Q: Year 1999 2000 2001 2002 2003 2004 The table below gives the US CPI for six years. CPI 166.6 172.2…
A: CPI is the consumer price index. The CPI is used to calculate the inflation rate. The CPI is…
Q: Problem 03-09 (part a) Suppose a study finds that drinking a daily glass of orange juice reduces the…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…
A: Formula for the future value of annuity is given as:
Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: Marginal Abatement Cost (MAC) is the cost incurred to reduce or mitigate the emission of a pollutant…
Q: The main argument against monetary policy is that it affects only nominal variables, not real…
A: An economic framework called the AD/AS model shows the connection between the total amount of…
Q: If taxes were cut by $1 trillion and the MPC was 0.93, by how much would total spending a. Increase…
A: Total spending, otherwise called aggregate spending, alludes to the overall measure of money spent…
Q: Figure 11.4.3 Price ($) 4000 3000 2000 1000 Supply = MC = MSC MSB
A: Market refers to a place at which the buyer and seller of a goods or service comes in contact with…
Q: Using the following data, calculate the profit-maximizing quantity and price. Find the average total…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: s Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…
A: Present worth, also known as present value, is the current monetary value of future cash flows or…
Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…
A: Government imposes taxes on various harmful materials with a view that higher prices could…
Q: £9. A computer software firm has developed a new and better spreadsheet program.' The program is…
A: To find the profit-maximizing monopoly price and the number of consumers who would not buy the…
Q: We are all aware that there are many natural resources, fossil fuels like coal, crude petroleum,…
A: Resources allude to the different assets, materials, abilities, and implies that individuals,…
Q: Anticipating low Demand in the next few weeks due to a holiday, stores begin pulling butter off the…
A: The point of balance in the market when quantity (Q) supplied of a good is equal to its demand at a…
Q: Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Sam owns a water pump. Because pumping large amounts of water is harder than pumping small amounts,…
A: A supply curve is a graphical representation of the relationship between the quantity of a good or…
Q: w can incumbents legally erect entry barriers around novel and non-obvious products or production…
A: In the market, barriers are created to maximize the profit. The Monopoly is maintained only if the…
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Draw a table with multiple columns to help you answer the following questions. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? If the marginal cost of planting and harvesting an acre is $7,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?Soft drink industry has been historically profitable why? compare the economies of the concentrate business to the economics of the bottling business. Why do you think the profitability is so different between these businesses?(1) Use the graph to answer the question below. The quantity is measured in thousands of units. What will this firm decide to do in the long run? A-It will stay in the market because the price is above its AVC at its profit-maximizing output. B-It will leave the market because the price is below its ATC at its profit-maximizing output. C-It will increase its price to point B to earn normal profit. D-It will increase its output until its profit-maximizing output level is equal to B. E-Insufficient data to determine. (2) A dairy farmer is operating in a perfectly competitive market. The market price for milk is between the farmer's average variable cost and average total cost at the profit-maximizing level of output. What will the farmer do? A-Produce more milk. B-Produce less milk. C-Shut down in the short run. D-Operate in the short run and leave the industry in the long run. E-Insufficient information to determine (3) A firm operating in a perfectly competitive market cannot…
- Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.onsider the general impact of the war in Ukraine on the market for wheat. The April 30, 2022 issue of The Economist had an article titled “Can Brazil help with food shortages around the world?”. You do not have to read the story to understand the setup of these questions. Please, carefully read each question to understand when these changes are introduced into the initial scenario. Here is what you should focus on to complete your analysis. For this analysis, assume the wheat market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped ATC and AVC. Finally, for all questions, assume market price is always greater than the minimum of the AVC. You will be using the same graph in all questions that require a graph (Questions 6, 8, and 10), with each question asking you to add new elements to the graph as part of your analysis. 1) Assume that prior to the outbreak of the war in Ukraine, the wheat…What are ways the profit arises in the changeable/dynamic word ? Comment
- The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 8 60 40 20 0 mớ H + 0 9 18 27 36 45 54 63 72 81 QUANTITY (Bippitybops per day) * Demand 90 B 99 108 Total Revenue (?)Principles of Microeconomics Name: Homework #3 Prof. R. Harris DUE: Wednesday, April 17, 2019 at the beginning of class - NO EXCEPTIONS. Please remember to show all work and please be neat. Please staple this if you print it on your own. 1. Consider the following table of numbers, which represents demand and cost conditions for a com firm. petitive TR 600 0 1 2 $o $400 600 $400 $240 600 $430 $670 $960 $1,350 $1,840 $2,440 $3,120 $3,910 $4,800 600 600 600 600 600 600 5 6 7 600 600 9 10 (a) Fill in the missing values (b) Use the information in the chart to determine what level of output the firm should produce. Explain your reasoning.Suppose the market for fresh pork is a competitive market. Initially, it is operatingat its long-run competitive equilibrium at a market price of $50.Owing to the spread of COVID-19, many people turn to buying frozen meat oncea week rather than fresh pork every day. As a result, the market price of fresh porkreduces to $30.a. With the aid of a pair of market-and-firm diagrams, illustrate how thiswould affect the equilibrium price and quantity in the fresh pork market andthe output of a typical butcher of fresh pork in the short-run.b. Suppose, for the situation in (a), the average cost of a typical butcher offresh pork is $40, which includes $15 on buying meat from suppliers, $12on paying rent, $8 on paying hourly wages on staff, and $5 on other costs.Explain whether a typical butcher should shut down in the short run.
- (b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p = 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Problem з7. You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Output = 2000 pounds, market price = $5.00, total cost =$8000, fixed cost=$2000, marginal cost=$5. The minimum of AVC occurs at {1000 pounds at $2} and the minimum of ATC at {1500 pounds at $3.5}. Please help Jack with the following questions based on the above figures: a. Draw a graph for the raw cotton market and a graph for Jack’s farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Is Jack maximizing the profit (minimizing the loss)? Why or why not? Label the total profit/loss area. b. Suppose more farmers enter the raw cotton market until the market price is $3.00 per pound. On the same graphs, show the effect of this change in the market place. Would you like to suggest Jack leaving the market in the short run? Explain your answer7. You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Output = 2000 pounds, market price = $5.00, total cost =$8000, fixed cost=$2000, marginal cost=$5. The minimum of AVC occurs at {1000 pounds at $2} and the minimum of ATC at {1500 pounds at $3.5}. Please help Jack with the following questions based on the above figures: a. Draw a graph for the raw cotton market and a graph for Jack’s farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Is Jack maximizing the profit (minimizing the loss)? Why or why not? Label the total profit/loss area. b. Suppose more farmers enter the raw cotton market until the market price is $3.00 per pound. On the same graphs, show the effect of this change in the market place. Would you like to suggest Jack leaving the market in the short run? Explain your answe