Rose growing is a perfectly competitive industry

Assignment Help Business Economics

Reference no: EM131240735

Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $7 a bunch and each grower maximizes profit by producing 1500 bunches a week. The average total cost of producing roses is $17 a bunch. Minimum average variable cost is $6 a bunch and the minimum average total cost is $9 a bunch. 1) In the short run, is each grower incurring an economic loss or making an economic profit? How much per week?

Answer with a positive number .

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

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

B. making an economic profit; enter; Increase

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

D. incurring an economic loss exit decrease

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

Reference no: EM131240735

Questions Cloud

Determine the quantity of heat removed : A closed rigid vessel having a volume of 1 m^3 is filled with steam at 10 bar and 573 K. Heat is removed until the temperature reaches 473 K. Determine the quantity of heat removed.

What evidence might you bring to the hearing : Anti-trust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for you..

Draw a possible marginal cost curve for laptop : Suppose that the cost of production of laptop computers shows initially a brief span of decreasing marginal costs, followed by increasing marginal costs.

Which of these displays price discrimination : Which of these displays price discrimination?

Rose growing is a perfectly competitive industry : Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $7 a bunch and each grower maximizes profit by producing 1500 bunches a week. The average total cost of producing roses is $..

Significant and active earthquake zones in north america : Give examples of 4 significant and active earthquake zones in North America. Tell what type of fault characteristics each zone have and what kind of earthquake activity is typical for each zone.

Draw a production possibilities frontier (ppf) for this farm : A farm can produce either chickens or horses, or both. The chickens eat corn, while the horses eat oats and hay. Both chicken and horse production is characterized by diminishing returns.

Complete her income-tax return : Allison is trying to complete her income-tax return. A number of questions have come up about life insurance. Explain the tax treatment of each of the following. Allison is the beneficiary named in her grandfather’s life insurance policy. Allison’s o..

Stagnation temperature and pressure : A normal shock wave occurs in air at a point where the velocity is 600 m/s and the stagnation temperature and pressure are 473 K and 600 kPa, repsectively. Find the Mach numbers, pressures, and temperatures upstream and downstream of the shock wav..

User Account

All Pages