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- Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the producers in the corn production industry were price takers, what would happen to the following? a. the price of corn b. the profitability of corn farmers who quickly adopt the new technology c. the profitability of corn farmers who are slow to adopt the new technology d. the price of soybeans, a substitute product for cornWhen demand increases in a perfectly competitive market, in the short run. Multiple Choice quantity supplied decreases: supply increases quantity supplied increases; supply increases quantity supplied increases; supply decreases quantity supplied decreases; supply decreases and in the long run.The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=450-6P. Market Supply is given by Q=4P-13. Suppose 21 units are bought to the market. Consider the Marginal Cost of production for these 21 units. What is the maximum Marginal Cost of production of these 21 units? Enter a number only, do not include the $ sign. Hint: 21 doesn't have to be the market quantity.
- A perfectly competitive market is in a long-run equilibrium. Prices of variable inputs for the typical firm decrease. Describe what will happen in the short run, to the typical firm’s marginal costs, average fixed costs, average costs, profits, and production as the firm makes its choices. In each case, describe why those changes take place. Describe exactly why the firm decides to make changes. As part of that discussion, summarize what happens in the market and how those changes relate to the typical firm. You do not need to discuss why the changes take place in the market. Outline in several sentences what will happen in the long run to the typical firm and the market.The market for Ramen noodle bowls is perfectly competitive. Market demand is given by P=55-4Q. If the price for a bowl of noodles is $21 how many units are demanded in the market? Enter a number only. Remember, fractions of goods are possible.The market for paperback detective novels is perfectly competitive. Market Supply is given by P=5+3Q. If the Marginal Cost of the last unit sold is $65, how many units are sold in the market? Enter a number only. Remember fractions of goods are possible.
- In a perfectly competitive market, firms that remain in the market in the long run produce at the efficient scale because minimizing costs always maximizes profits. markets are always efficient. their supply curve is horizontal. they are price takers and must make zero profits in the long run.Suppose that the firm operates in a perfectly competitive market. The market price of his product is$10. The firm estimates its cost of production with the following cost function: TC=10q-4q2+q3 A. What level of out put should the firm produce to maximize its profit? B. Determine the level of profit at equilibrium. C. What minimum price is required by the firm to stay in the market?The agricultural market whose demand and supply schedules are is initially in long-run equilibrium. Quantity then falls to 50% of its previous level as a result of an unexpectedly poor harvest. How many time periods will it take for price to return to within 1% of its long-run equilibrium level?
- Consider a perfectly competitive market characterized by a market supply equal to QS=32*P and a market demand equal to QD=400-8*P. What is the market equilibrium quantity?In perfect competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product. True or falseFirms in a perfectly competitive market are said to be “price takers”—that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
