Apples are bought and sold in a competitive market

Assignment Help Business Economics

Reference no: EM13801693

Apples are bought and sold in a competitive market.

i) Use a graph for the apple market and a graph for an individual firm to demonstrate that firms are earning economic profits.

ii) Explain, without using a diagram, whether the situation in (a) can be maintained in the long run.

Reference no: EM13801693

Questions Cloud

Same purchasing capability : You think that you need $60,000/year to live on when you retire. Assuming an annual inflation of 3.4%, how much would you need in actual dollars per year 40 years from now to have the same purchasing capability?

Daily demand for tokens on major urban rapid transit system : The chart on the following page shows the average daily demand for tokens on a major urban rapid transit system. What is the elasticity of demand at a fare of $2.50/token? Is the revenue maximizing fare higher than, lower than or equal to $2.50/token..

Assume the price of large gulf shrimp : Assume the price of large gulf shrimp is $18 per pound and that the price of hard shell Maine lobster tails is $36 per pound. Your professor uses ½ pound of lobster or ½ pound of shrimp with various pasta dishes. In a typical month he cooks 4 shrimp/..

Compute the average inflation rate : You expect your cost for steel to increase 3% next year, then 5% the year after that, and finally 6% three years out. Compute the average inflation rate for your steel purchases over the next 3 years. You plan to live in your house for 20 years, and ..

Apples are bought and sold in a competitive market : Apples are bought and sold in a competitive market. Use a graph for the apple market and a graph for an individual firm to demonstrate that firms are earning economic profits. Explain, without using a diagram, whether the situation in (a) can be main..

Average cost-marginal cost-demand and marginal revenue curve : De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination.

Study the seasonal demand and supply : A study the seasonal demand and supply, explain what happened to cause the oil prices to fall to consumer demand in early 2015. Draw demand and supply curves to explain what happened.

What happens to consumer surplus in the market : A drought in Nova Scotia reduces the apple harvest, what happens to consumer surplus in the market for apples? What happens to consumer surplus in the market for apple juice? illustrate your answers with diagrams.

Leadership in agile project management focuses : Leadership in agile project management focuses on _____. Leadership in traditional project management focuses on _____.

User Account

All Pages