Determine the supply and aggregate supply curve , Operation Management

Assignment Help:

In the food processing sector of a country, 100 identical small firms produce frozen fruits. Each producer is a price-taker in the market and faces the following cost conditions:

Total Cost in €

15

18

20

21

23

26

30

35

41

48

56

Firm production (q) in tons

0

1

2

3

4

5

6

7

8

9

10

The aggregate market demand for the frozen fruits has been estimated as follows:

Price in €

10

9

8

7

6

5

4

3

2

1

0

Total production (Q) in tons

0

100

200

300

400

500

600

700

800

900

1000

Using these data answer the following:

(1)  Determine the supply curve of each individual small producer, taking into account that the producer has the option to cease production if this is not profitable.

(2)   Determine the aggregate supply curve of the sector.

(3)   Find the short-run equilibrium price and total quantity (Q) in the sector. Does each individual producer make positive or negative profits in this equilibrium? 

(4)   Find the long-run equilibrium in the sector, i.e., price, total quantity and number of firms when there is free entry and exit in the market. [Hint: the number of firms can be a non-integer number.] 


Related Discussions:- Determine the supply and aggregate supply curve

Define the information security issues facing the government, Evaluate: Eva...

Evaluate: Evaluate the information security issues facing the government and identify its three biggest concerns. Application: Demonstrate how the government can use authentication

Explain challenges has the european union consortium faced, Describe what c...

Describe what challenges has the European Union Consortium faced in the last 2-3 years

500, find the optimal location for kilroy"s distribution center in this exp...

find the optimal location for kilroy"s distribution center in this expanded version of the problem

How understanding of consumer behaviour helped groupon grow, How has an und...

How has an understanding of consumer behaviour helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today? What is the Groupon Prom

Which class might have the major impact on the workforce, Determine which c...

Determine which class protected by Title VII of the Civil Rights Act of 1964 had the greatest impact on the workforce of the 20th century. Next, determine which class might have th

Determine the break-even point, Question: Le Bistro makes more than one...

Question: Le Bistro makes more than one product and would like to know its break-even point (price). Monthly fixed cost is estimated at $3,500 and management has gathered the f

Case study ramada demonstrates its personal best, I have an assignment this...

I have an assignment this week to read "Ramada Demonstrates its Personal Best" on the 'Companion Website.' Do I have access to questions/answers that go along with that?

Explain divisions of labour are appropriate, Draw an organizational chart o...

Draw an organizational chart of the business school or college that you attend. Outline its major roles and functions. How differentiated is it? Do you think the distribution of au

Explain socially responsible company, In light of these actions, can GM sti...

In light of these actions, can GM still be a socially responsible company? If so, how?

Ch 6, I-mart is a discount optical shop that can fill most prescription ord...

I-mart is a discount optical shop that can fill most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person ass

Write Your Message!

Captcha
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