How much profit does an individual producer make

Assignment Help Business Economics

Reference no: EM1320355

Q. Assume honey is produced in a beehive using bees also sugar. Each honey producer utilizes one beehive which she rents for $30/month. Producing q gallons of honey in one month requires spending 5q dollars bees also 2q2 dollars on sugar.

a) Illustrate what is the total cost of producing q units of honey for an individual honey producer in a given month?

b) Illustrate what is the average cost of producing q units of honey every month for an individual producer for a given month?

c) In general, if the total cost of producing honey is a + bq + cq2, then the marginal cost of producing honey is b + 2cq. Assuming each honey producer operates as a price-taker, illustrate what is the monthly supply curve for an individual producer?

d) Let Q be the total marketplace supply also q is the supply of an individual industry. Therefore, q = Q/n where n is the total number of industries in the marketplace. Assume the demand for honey is given by Q = 590-4P. Also, Assume there are 80 honey producers in the marketplace. Illustrate what is the equilibrium price of honey?

e) Elucidate how much profit does an individual producer make in a month? Is this a long-run equilibrium?

If the answer is yes, simply state that it is a long-run equilibrium. If the answer is no, explain whether or not the equilibrium price will rise or fall.

Reference no: EM1320355

Questions Cloud

How far from the dog will the suitcase land : A block has an initial speed V(o) > 0 on a linear trajectory on the surface with friction coefficient u and air resistance (F = cv^2). Derive an equation that will represent the velocity (V) as a function of the position of the block (x). So V(x).

What voltage will you voltmeter read across : Assume after charging a 4.80 microF capacitor to 5 V you connect it to the second uncharged capacitor of 15 microF. What voltage will you voltmeter read across the second capacitor after repeating charge sharing process two times? State the answer..

Stating slope of trend line : Below, explicitly state slope of your trend line and describe what value of slope signifies in terms of this context.

Developing the database of company : Enable the user in order to input a last name; then find the file and show all the names and phone numbers corresponding to that last name.

How much profit does an individual producer make : Elucidate how much profit does an individual producer make in a month. Is this a long-run equilibrium.

What is the normal force exerted on the cart by the floor : A cart loaded with bricks has a total mass of 21.2 kg and is pulled at constant speed by a rope. The rope is inclined at 27.2 ? above the horizontal and the cart moves 27.1 m on a horizontal floor. The coefficient of kinetic friction between groun..

College charges all students the same tuition : If the college charges all students the same tuition, illustrate what tuition can it charge to cover all of its costs.

Illustrate what occurred to employment : Illustrate what occurred to employment during the rest of 2008. Illustrate what are some of the alternatives to a tax cut that might have been utilized.

Calculate the z or t value of the sample test statistic : Calculate the z or t value of the sample test statistic

User Account

All Pages