Farmer Bogus is selling his product in a purely competitive market. His output is 600 bushels...
Farmer Bogus is selling his product in a purely competitive market. His output is 600 bushels which sell for $5 per bushel. At this level of output, marginal cost is $5, average total cost is $7and average variable cost is $6. Farmer Bogus should produce how many bushels of output?
Homework Answers
Here the price is less than the shut down price i.e the price is less than the average variable cost. If the firm is not able to cover even the average variable cost then the firm should shut down in the short run. Therfore the firm should produce 0 output.
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Farmer Bogus is selling his product in a purely competitive
market. His output is 600 bushels...
Farmer Bean is selling green beans in a purely competitive market. His output is 600 units,...
Farmer Bean is selling green beans in a purely competitive market. His output is 600 units, of which each has a marginal revenue of $3. What is his average revenue?
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1.The Kees are small farmers in the wheat industry –they are price takers. Their cost function...
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The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market...
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a purely competitive firm finds that the market price for its product is $30 it has...
a purely competitive firm finds that the market price for its product is $30 it has a fixed cost of $100 and a variable cost of $15 per unit for the first 50 units and then $35 per unit for all successive units. what is the average variable cost for the first 100 units? what output level will yield the largest possible profit for this purely competitive firm?
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
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Assume the Green Corporation is producing 25 units of output in a purely competitive market. The...
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Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether...
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The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
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