Starts out in the long-run competitive equilibrium

Assignment Help Business Economics
Reference no: EM132503156

1) Assume the market for wheat display's the following characteristics, namely many buyers and sellers, produce identical products and have no barriers to entry or exit.

(a) Assume the wheat industry starts out in the long-run competitive equilibrium. Using appropriate diagrams show how this would look like at both the industry and firm level. (Hint: Each firm is making a normal profit).

(b) Now assume there has been a permanent decrease in demand for wheat. Using appropriate diagrams explain what will happen to price and quantity for wheat at both the industry and firm level. (Hint: You need to discuss what type of profits, if any, each firm is making).

(c) With the use of appropriate diagrams, discuss the adjustment process, at both industry and firm level, to bring the market for wheat back to long-run equilibrium.

Reference no: EM132503156

Questions Cloud

Determining the long-run competitive equilibrium : Assume the wheat industry starts out in the long-run competitive equilibrium. Using appropriate diagrams show how this would look like at both the industry
Calculate the bank account balance at the end of april : Calculate the bank account balance at the end of April 2010. Prepare the Income Statement for the month of April 2010. Prepare the Balance Sheet as the 30 April
ICT100 Foundations of Information Systems Assignment : ICT100 Foundations of Information Systems Assignment Help and Solution - King's Own Institute, KOI, Australia - Assessment Writing Service
Explain what the standards are : For this discussion you will commit to a focus in science, technology, engineering, art, and mathematics (STEAM), at either the elementary or secondary level.
Starts out in the long-run competitive equilibrium : Assume the market for wheat display's the following characteristics, namely many buyers and sellers, produce identical products and have no barriers to entry or
What is the beta of stock z if the betas of stock w : $2,500 in Stock Y, and $3,000 in Stock Z. What is the beta of Stock Z if the betas of Stock W, X, and Y are 0.7, 1.3, and 2.5, respectively?
Write a program reflection about the nursing program : Write a half of page program reflection about the nursing program I have just completed. Talk about having a different prospective on life and having.
Changes in the price of goods and consumer budget : Explain how changes in the price of goods and consumer's budget affect the budget line.
What is the effect of not recording the entries : The accountant for Out to Get You, Corp. forgot to record all entries related to this transaction. What is the effect of not recording these entries?

Reviews

Write a Review

Business Economics Questions & Answers

  Convert the cube dimensions

You will need to convert units to get them to cancel out with the units in the gas constant, otherwise your answer will be incorrect.) Hint: it may be helpful to convert the cube dimensions to the appropriate units before calculating the cube's vo..

  Moral justification of capitalism

Relate the ideas of Adam Smith to the moral justification of capitalism, given the logic of the theory of the competitive firm.

  Monopoly profit maximization

Pfeitzer is a monopolist for a new drug that makes people feel thinner. The total cost function is C(Q) = 100 + 12Q + 2Q 2 . The inverse demand function

  Should wages and salaries be indexed to economic performance

In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. How reliable a..

  Explain the economic costs of your decision

Essay identifying and describing the current state of the health care industry using the tools we have studied this semester. Your answer in terms of what you think is the socially optimal solution versus the economic least cost solution, but you mus..

  Factor affecting how elastic a demand

Which of the following is NOT the factor affecting how elastic a demand is?

  Job function fit into a firm strategy

What does CIO stand for, and how does the CIO's job function fit into a firm's strategy?

  Four categories of people whose salaries

There are four categories of people whose salaries are provided in my spreadsheet:

  Optimal scale of firms

Suppose instead of imposing the $1 fixed fee, the government imposes a tax of $1 per unit of output. What happens to the optimal scale of firms? We again assume all firms are identical and any firm can enter the market.

  Change in the price has on the change in the quantity

Assume the elasticity of demand (Ed) at a price of $11 is 3.5, while the Ed at a price of $6 is equal to 1, while the Ed of a price of $3 is = .50. Explain/interpret what each of those answers means. Be thorough and be sure to discuss the impact that..

  Calculate the NPV of going directly to market

Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $34.7 million. If the DVDR fails, the present value of the payoff is $12.7 million. If the product ..

  Immigrants return to potential gdp

Explain what will happen in the countries to which the immigrants return to potential GDP, employment, and the real wage rate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd