Economic statements about purely competitive firms

Assignment Help Macroeconomics
Reference no: EM1311150

1. It would be reasonable for a typical purely competitive wheat  farmer to lower his price per bushel in order to sell more. The  higher sales level will cause average fixed cost to decrease and this will result in more profit for the individual farmer. True or false, and why?

2. In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because  he could reduce his variable costs by selling less at a higher  price. True or false, and why?

3. Suppose that a price support system for cotton requires the federal government to pay farmers $3,000 per acre to not plant cotton. How would you shift either the supply or demand curve for cotton to illustrate the effect of this action? In youranswer describe  only one shift, not two.

Reference no: EM1311150

Previous Q& A

  Understanding about knowledge-skills-abilities

The given set of questions test your understanding about knowledge (K), skills (S), abilities (A) and the other personal characteristics (O) in the job analysis.

  Evaluate the equivalent units of product

Evaluate the equivalent units of product for (1) materials and (2) conversion cost for each month and calculate the physical units for January and May.

  Journalization of transactions for production costs

Journalization of transactions for production costs as like of raw materials, labor, processing and overhead using transferred goods data and details.

  Computation of yield to call of a bond

Computation of yield to call of a bond and What is their yield to call (YTC)

  Blind spot in the vision

What explains why Ingrid has this blind spot in her vision?

  Deadweight loss for the monopolist firm

What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?

  Purpose a monthly cash budget

Use this information to prepare a monthly cash budget for Roche City for Jan, Feb, and March of 2006.

  Methods to measure level of success

Describe methods to measure the level of success of each scenario.

  Computation of value of the bond

Computation of value of the bond and what is the bond's price based on semi-annual compounding

  Show activity based costing

Each ticket entitles the visitor to attend the IMAX giant screen sense around movie as well as the traditional planetarium.

Reviews

Write a Review

 

Similar Q& A

  Describe the soviet rapid development model

Describe the Soviet Rapid Development Model

  Capital structure decisions in perfect capital markets

In a perfect capital market, advices for  a corporate financial manager on making capital structure decisions.

  Calculate steady state capital

Changes in government spending and interest rates

  Profit maximizing or cost minimizing

Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.

  Market imperfection associated with negative externalities

Essay on Market imperfection associated with negative externalities

  Canadian economy

When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.

  Which of the happing tends to occur during recessions

Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..

  Application of nash equilibrium and game theory

Application of Nash Equilibrium and Game Theory with examples

  Difference between nominal interest and real interest rate

Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.

  Price regulation in product markets

This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.

  What is opportunity cost

What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?  Explain law of demand with the help of a demand schedule and demand curve.

  Understanding international macro economy

The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.

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