Exercises on competitive markets

Exercises on competitive markets - Some Problems on...

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Some Problems on competitive markets. (Answers at the end) Jimmy grows corn. His total revenue and total cost are in the above table. What quantity of corn maximizes his profit and what is his profit? Farmer Brown produces corn in a perfectly competitive market. Farmer Brown produces and sells 500 bushels of corn. The market supply and demand curves are illustrated in the above figure. a. What is Farmer Brown’s total revenue? 1
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b. What is Farmer Brown’s marginal revenue? Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed sunk cost of $12.00. The price of Acme’s product is $4. What is Acme’s most profitable amount of output? What is Acme’s total economic profit or loss? 2
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The above diagram shows the cost curves for a perfectly competitive wheat farmer. 1) At what price(s) does the wheat farmer earn an economic profit? 2) Earn zero profit? 3)
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This note was uploaded on 10/04/2011 for the course ECONOMICS 281 taught by Professor Vg during the Spring '09 term at University of Alberta.

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Exercises on competitive markets - Some Problems on...

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