Description for the purely competitive market

Assignment Help Macroeconomics
Reference no: EM1316676

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 your answer describe only one shift, not two.

Reference no: EM1316676

Questions Cloud

What is the standard error for the sample mean : At a computer manufacturing company, the actual size of computer chips is normally distributed with a mean of 1 centimeter and the standard deviation of 0.1 centimeter. A random sample of 12 computer chips is taken. What is the possibility that th..
Computation of risk free rate of return : Computation of Risk free rate of return and Suppose that securities A and B are perfectly negatively correlated
Increase of confidence interval width : A confidence interval increases in width as:
Verilog system : Develop a Verilog system which will accept a block of data words; then check the parity for each data word and for the block.
Description for the purely competitive market : 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?
Confidence interval for the population mean also interpret : Find out the confidence interval for the population mean also interpret the result. A researcher is interested in whether social assertiveness might be influenced by training procedures.
The solution of an inequality with absolute value expression : The solution of an inequality with absolute value expression
Threats resolved by redhat linux : The switches have the VLANs defined, one for the offices, one for the MIS, and one for the warehouse. Recognize what threats are resolved by the Redhat linux.
Probability of belonging to different age groups : What is the probability of the person is 20 to 24 years old.What is the probability of the person is 20 to 34 years old.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Marginal opportunity cost of services in two countries

What is the marginal opportunity cost of services in each country? Who has the comparative advantage in factory-stuff?

  Compute the reservation wage

Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.

  Price regulation for enrodes

Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 2 million households is Q4 = 1,000 P and Enrodes can produce electricity at a constant marginal cost of $2 per megawatt hour.

  Questions on present value and interest rate

What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?

  Expansionary fiscal policy

In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?

  Determination of production function

You have been hired as a plant manager for a firm that produces widgets (Q) in Angola, Indiana. Widget production requires machine time (K) and labor time (L).

  Effect of the shock on price level

With the help of an AD-AS diagram, explain the effect on the price level and real GDP.  Use an upward sloping AS curve and be clear about the interconnections among markets.

  Computing profit-maximizing quantity and price

A monopolist has a constant marginal and aver­age cost of $10 and faces a demand curve of Q D  = 1000 - 10P. Compute the monopolist's profit-maximizing quantity, price, and profit.

  Describing how production changes with cost

You are a manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 semiskilled workers at its warehouse to box and ship the products it sells online.

  Daily budget constraint and calculating reservations wage

Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.

  Pay off matrix and optimal pricing strategy

You are the manager of a firm that manufacturers front and rear windshields for the automobile industry. Due to economies of scale in the industry

  Underlying circumstances to study economics

Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.

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