How does producer surplus differ from economic rent

Assignment Help Other Subject

Reference no: EM133828332

Imagine you're running a lemonade stand on a hot summer day. There are many other lemonade stands on your street, all selling similar drinks.
Using the concepts covered this week, discuss the following:

Question 1. Perfectly Competitive Characteristics: What are three key characteristics of a perfectly competitive market, and how do they apply to your lemonade stand situation? (Think about number of buyers/sellers, product homogeneity, and price control)

Question 2. Demand Curve and MR: Why is the demand curve faced by your lemonade stand perfectly elastic (horizontal)? How does this relate to the concept of marginal revenue (MR) for your stand? Get your assignment done Now!

Question 3. Long-Run Equilibrium: In the long run, what factors might cause lemonade stands to enter or exit the market? What conditions would indicate long-run equilibrium for the lemonade industry on your street?

Question 4. Industry Supply Curve: How can the individual cost curves of all the lemonade stands be combined to depict the industry supply curve? What does the shape of the long-run industry supply curve tell us about the production efficiency in this market?

Question 5. Economic Rent vs. Producer Surplus:
o Define economic rent. Are there any resources used in your lemonade stand that might generate economic rent?
o How does producer surplus differ from economic rent? How can you calculate the producer surplus for your lemonade stand at the long-run equilibrium price?

Reference no: EM133828332

Questions Cloud

Key elements of the organization of gender : What are Steffensmeier and Allen's five key elements of the organization of gender that increases the probability of prosocial response by females.

Explain how transference may be exhibited by the client : A nurse working with a client in inpatient unit notes symptom of transference during their interactions. Explain how transference may be exhibited by the client

Provides a recommendation to increase your personal power : Provides a recommendation to increase your personal power and influence development based on your research and analysis

What risks are to individuals who previously were identified : What the risks are to individuals who previously were not identified as having any problems with alcohol or substance abuse.

How does producer surplus differ from economic rent : How does producer surplus differ from economic rent? How can you calculate the producer surplus for your lemonade stand at the long-run equilibrium price

What are the desired elk habitat conditions that the plan : What are the desired elk habitat conditions that the plan intends to produce and why? Relate the desired conditions to specific wildlife-habitat relationships.

Impacts of hurricane katrina as it relates to communities : Discuss the impacts of hurricane Katrina as it relates to communities, families, state & federal municipalities.

How can the care team address clinical and ethical concerns : The interdisciplinary care team wants to meet Laura's needs in a dignified and respectful manner. How can the care team address clinical and ethical concerns?

Discuss adherence to treatment in a non-confrontational way : Discuss adherence to treatment in a non-confrontational way at every clinic visit and take into account a patient's illness and medication beliefs.

User Account

All Pages