Homework Answers
a) in order to maximize the profits, Ali should produce at point where Marginal Revenue is equal to Marginal Cost.
here price is not changing, so Ali should produce at price = MC
When P =MC = $84.70 per bushel, Ali will produce 4500 bushels in order to maximize his profits in short run.
b) Profits = Total Revenue - Total Costs
Total Revenue = Quanity sold*Price
=4500* 84.7 = $381,150
Total Costs = ATC*Quatity Sold
= 49.14*4500 = $221,130
Profits = 381150 - 221130 = $160,020
c) When Price is $22.7 per bushel, Ali will Choose 1500 bushels to produce. Reasoning behind this is similar to first question.
d) Profits = Total Revenue - Total Costs
Total Revenue = Quanity sold*Price
=1500* 22.7 = $34,050
Total Costs = ATC*Quatity Sold
= 28.03*1500 = $42,045
Profits = 34050 - 42045 = - $7,995
e) if the market price is $14.7 per bushel, then Ali will choose to produce 1000 bushels. Reasoning is similar to part a)
Add Answer to:
The table below shows All's monthly costs of producing wheat. Suppose the current market price of...
costs of producing Prod bushels AVC (dollars) ATC (dollars) MC (dollars) 0.80 е.00 1.00 248.00 85.00...
costs of producing Prod bushels AVC (dollars) ATC (dollars) MC (dollars) 0.80 е.00 1.00 248.00 85.00 63.33 55.00 51.00 0.00 20.80 e.00 4.86 7.50 48.00 56.00 65.00 75.00 44.80 54.80 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to In front of those numbers a. If the market price is $56.00 per bushel of wheat, and All chooses to produce wheat, how much will he pr maxtmize his profits in the...
The graph below shows shows a perfectly competitive market for wheat and a typical farm in the market. The demand for wheat increases from D1 to D2. Assume that wheat production is a constant-cos...
The graph below shows shows a perfectly competitive market for wheat and a typical farm in the market. The demand for wheat increases from D1 to D2. Assume that wheat production is a constant-cost industry. A typical farm The market for wheat Cost ($) Price (S per bushel) MC 10 10 9 ATC 8 7.20 715 751 D2 5 5 40 80 120 160 200 240 Quantity (thousands of bushels) 20 40 60 80 100 120 Quantity (milions of bushels)...
1)for this farmer to maximize profits, he should produce___bushels of wheat. explain 2) farmer fixed costs...
1)for this farmer to maximize profits, he should
produce___bushels of wheat. explain
2) farmer fixed costs are___. how could you find these?
3) if this farmer maximizing profit, his profit will be__.
explain
4) this farmer would earn a zero economicc profit price was___
explain
Cost and demand conditions M MC ATC AVC d = MR ū7 Price per bushel + 1 i II | | | | | | | | 3 9 6 9 12 16 17 Bushels...
1.The Kees are small farmers in the wheat industry –they are price takers. Their cost function...
1.The Kees are small farmers in the wheat industry –they are price takers. Their cost function is: TC = 300,000 + 1,500Q + Q2 and MC = 1500 + 2Q. The market price is $3,000 per ton. Assuming the Kees are maximizing profits (or minimizing loses), how much profit are they making? 2.Good Grapes is selling organic grapes in a purely competitive market. Its output is 5000 pounds, which it sells for $5 a pound. At the 5000-pound level of output,...
1. Suppose that corn currently costs $4 per bushel and that wheat currently costs $3 per...
1. Suppose that corn currently costs $4 per bushel and that wheat currently costs $3 per bushel. Also assume that the price elasticity of corn is 0.10, while the price elasticity of wheat is 0.15 Both have an income elasticity of 0.10. If the price of corn fell by 25 percent to $3 per bushel, by what percentage would the quantity demanded of corn increase? What if the price of wheat fell by 33 percent to $2 per bushel? a....
The table below shows the daily costs of Cathy's Corn Stand. Cathy sells her corn cobs...
The table below shows the daily costs of Cathy's Corn Stand. Cathy sells her corn cobs in a perfectly competitive market. MC (dollars) $2.50 5.00 Cathy's Corn Stand's Production Costs Quantity (corn cobs) AVC (dollars) 8.0 $5.00 0 11. 4 .55 13.0 4.62 14.8 4.75 16.3 4.91 17.7 5.10 18.9 5.29 5.51 ATC (dollars) $12.50 10.00 9.23 8.81 8. 59 8.50 8.47 8.52 6 .45 7.41 9.52 Instructions: In part a, round your answer to one decimal place. In part...
Question No. 3 (25pts.) The market for wheat consists of 500 identical firms, each with a...
Question No. 3 (25pts.) The market for wheat consists of 500 identical firms, each with a total cost function given as: TC = 90,000 + 0.0000 1Q2 where Q is measured in bushels per year. The market demand curve for wheat is: Q = 90,000,000-20,000,OOOP where P is the price per bushel. A. Determine the short-run equilibrium price and quantity that would exist in the market. Calculate the profit maximizing quantity for the individual firm. Calculate the firm's short-run profit...
The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru
3) Perfect Competition (5 points) The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive.For each market price given below, give the profit-maximizing output level and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. a. If the market price is $22... i. what...
17 The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by...
17 The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a perfectly competitive market. The market price of a dozen ears of corn is $2.20 per dozen. Tмс Quantity (Dozens of Ears) ($) 1.6 3.40 Corny's Corn Cobs AVC ATC ($) ($) 1.90 4.40 1.70 1.60 2.80 1.50 2.50 1.50 2.30 1.60 2.30 1.70 2.30 1.80 2.40 1.30 1.10 1.30 1.50 2.20 2.20 2.60 a. In the short run, to maximize...
Consider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat
Consider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for wheat by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move...
costs of producing Prod bushels AVC (dollars) ATC (dollars) MC (dollars) 0.80 е.00 1.00 248.00 85.00 63.33 55.00 51.00 0.00 20.80 e.00 4.86 7.50 48.00 56.00 65.00 75.00 44.80 54.80 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to In front of those numbers a. If the market price is $56.00 per bushel of wheat, and All chooses to produce wheat, how much will he pr maxtmize his profits in the...
The graph below shows shows a perfectly competitive market for wheat and a typical farm in the market. The demand for wheat increases from D1 to D2. Assume that wheat production is a constant-cost industry. A typical farm The market for wheat Cost ($) Price (S per bushel) MC 10 10 9 ATC 8 7.20 715 751 D2 5 5 40 80 120 160 200 240 Quantity (thousands of bushels) 20 40 60 80 100 120 Quantity (milions of bushels)...
1)for this farmer to maximize profits, he should
produce___bushels of wheat. explain
2) farmer fixed costs are___. how could you find these?
3) if this farmer maximizing profit, his profit will be__.
explain
4) this farmer would earn a zero economicc profit price was___
explain
Cost and demand conditions M MC ATC AVC d = MR ū7 Price per bushel + 1 i II | | | | | | | | 3 9 6 9 12 16 17 Bushels...
1. Suppose that corn currently costs $4 per bushel and that wheat currently costs $3 per bushel. Also assume that the price elasticity of corn is 0.10, while the price elasticity of wheat is 0.15 Both have an income elasticity of 0.10. If the price of corn fell by 25 percent to $3 per bushel, by what percentage would the quantity demanded of corn increase? What if the price of wheat fell by 33 percent to $2 per bushel? a....
The table below shows the daily costs of Cathy's Corn Stand. Cathy sells her corn cobs in a perfectly competitive market. MC (dollars) $2.50 5.00 Cathy's Corn Stand's Production Costs Quantity (corn cobs) AVC (dollars) 8.0 $5.00 0 11. 4 .55 13.0 4.62 14.8 4.75 16.3 4.91 17.7 5.10 18.9 5.29 5.51 ATC (dollars) $12.50 10.00 9.23 8.81 8. 59 8.50 8.47 8.52 6 .45 7.41 9.52 Instructions: In part a, round your answer to one decimal place. In part...
Question No. 3 (25pts.) The market for wheat consists of 500 identical firms, each with a total cost function given as: TC = 90,000 + 0.0000 1Q2 where Q is measured in bushels per year. The market demand curve for wheat is: Q = 90,000,000-20,000,OOOP where P is the price per bushel. A. Determine the short-run equilibrium price and quantity that would exist in the market. Calculate the profit maximizing quantity for the individual firm. Calculate the firm's short-run profit...
17 The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a perfectly competitive market. The market price of a dozen ears of corn is $2.20 per dozen. Tмс Quantity (Dozens of Ears) ($) 1.6 3.40 Corny's Corn Cobs AVC ATC ($) ($) 1.90 4.40 1.70 1.60 2.80 1.50 2.50 1.50 2.30 1.60 2.30 1.70 2.30 1.80 2.40 1.30 1.10 1.30 1.50 2.20 2.20 2.60 a. In the short run, to maximize...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 1 hour ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 2 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 3 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 4 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 5 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 5 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 5 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 5 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 5 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 5 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 5 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 5 hours ago