Poinsettia growing is perfectly competitive industry

Assignment Help Business Economics

Reference no: EM131240811

Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same cost curves. The market price of poinsettias is $5a pot and each grower maximizes profit by producing 2,600potsa week. The average total cost of producing Poinsettias is $20a pot. Minimum average variable cost is $4 a pot and the minimum average total cost is $12a pot . In the short run, each grower does each grower incur an economic loss or make a profit? How much?

Answer with a positive number.

Because firms in the industry are ______, some firms will ______ the market in the long run. The number of poinsettia growers will ______.

A. making an economic profit; enter; increase

B. incurring an economic loss; exit; decrease

C .incurring an economic loss; enter and some firms will exit; increase or decrease depending on the relative number of entering and exiting firms

D. making an economic profit; exit and some firms will enter; decrease or increase depending on the relative number of exiting and entering firms

E. making zero economic profit; shut down and exit; decrease.

Reference no: EM131240811

Questions Cloud

How mime with new or system-specific image and text format : one of the central problem faced by faced by a protocol such as MIME is the vast number of data formats available.consult the MIME RFC to find out how MIME with new or system-specific image and text format.

Profit maximizing attendance and profit in each case : Graph a short-run situation where a big market team has lower profits at its profit maximizing level of attendance than a small market team has at its profit maximizing level of attendance. in your graph, be sure to identify the profit maximizing att..

Moon experience zero net force : At what distance from the Earth will a spacecraft traveling directly from the Earth to the Moon experience zero net force because the Earth and Moon pull with equal and opposite forces?

Clean air act and its amendments increase production costs : The Clean Air Act and its amendments increase the production costs of the firms in a covered industry through increased:

Poinsettia growing is perfectly competitive industry : Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same cost curves. The market price of poinsettias is $5a pot and each grower maximizes profit by producing 2,600potsa week.

Rocket is projected upward from the earth surface : A rocket is projected upward from the earth's surface (r = RE) with an initial speed v0 that carries it to a distance r = 1.2 RE from the center of the earth. What is the launch speed v0? Assume that air friction can be ignored.

What is the launch speed : A rocket is projected upward from the earth's surface (r = RE) with an initial speed v0 that carries it to a distance r = 1.2 RE from the center of the earth. What is the launch speed v0? Assume that air friction can be ignored.

What percentage of the earth radius is this height : a) How high would it rise? b) What percentage of the Earth's radius is this height? c) What is the argon atom's initial speed?

Showing the market for hardcover dictionaries : Refer again to the graph above, showing the market for hardcover dictionaries. What are the two types of change in this market that would lead the equilibrium price to rise?

User Account

All Pages