Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering this question, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model.
Q: Çàlculáté thé priçé élástiçity óf dêmáñd (ɛ) fór Táblét if áñ iñçréásê iñ thê priçé óf Táblêt fröm…
A: Answers Introduction Product - Table Change in price = Rs. 1500 tó Rs. 1800 Change in quantity =…
Q: Plant sizes get larger as you move from ATC-1 to ATC-4. Output ATC-1 ATC-2 ATC-3 ATC-4 1,500 $ 10 $…
A: Answers As we can observe in the given table there is a variation in ATC for the same level of…
Q: Question 15 To calculate producer surplus, one finds the area under the demand curve and above the…
A: Producer Surplus is referred to as difference between the willingness to accept the quantity of the…
Q: Jane has a budget of I dollars and is deciding how to invest over the three healthcare-related…
A: Given information U=M1αM2βM3γPrice of M1=P1Price of M2=P2Price of M3=P3Consumers income=I
Q: Consider the total cost and total revenue given in the following table (Make sure to show all your…
A: A firm will maximise profit at a point where marginal revenue is equal to marginal cost and price is…
Q: 8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…
A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…
Q: Question 44 Please refer to the description of a tax on a market, represented by the graphic. The…
A: Answer: When the tax is applied by the government the loss in consumer surplus and producer surplus…
Q: We have assumed Hhe production functiorn AF (K.L) eahibite a anstant returrns to cale. That 1s IF He…
A: The implicit price deflector or GDP deflector tells us about the current price of goods and services…
Q: Using the Venn Diagram, compare and contrast the stages of Economic Development by Renee O’Farrel…
A: During an organisation's growth, even the most well-intentioned firms have times of upheaval. In…
Q: Examine the use of different allocation methods. Describe three different methods of allocating…
A: 1. Efficiency is defined as achieving desired objectives with the least amount of resources while…
Q: pa country with a population of 50 million people, there are 20 milion children under the age of 15…
A: The answer for both the MCQ's are as follows:-
Q: Classify each of the following cost items as mostly fixed or variable: a. Raw materials d.…
A: In the manufacturing and production of a company's goods and services, the term "cost" refers to all…
Q: Listen carefully to the podcast titled 'Is America losing faith in Free Trade?". What would help…
A: Free trade is a trade policy that does not restrict imports or exports.
Q: Question 28 To an economist, the Latin phrase ceteris paribus means "all else held equal." Group of…
A: In the Latin phrase ceteris pairbus means a change in itself and other factors that affect things is…
Q: In this section, the context is a large negative shock to autonomous consumption in an open economy.…
A: The aggregate supply refers to the entire amount of services and commodities that enterprises in an…
Q: 5. Match the earnings with the supply chain stages using the figure, which represents overall…
A: Given that Price = $2000, we have to find the share of each of the supply chain providers, given…
Q: A boost in investment sentiment will shifts IS curve right. O True False QUESTION 6 A boost in…
A: In an economic perspective, an investment is the buying of goods that are not utilized today but are…
Q: Which of the following would occur if minimum wage in Ottawa is above the equilibrium wage? quantity…
A: Minimum wage is an example of price floor. Wage cannot fall below this level.
Q: Suppose Paul gets utility from consuming two goods, pizza (P) and soda (S). His utility function is…
A: A consumer will maximise utility at a point where marginal rate of substitution is equal to the…
Q: 4. An economist produced the following Lorenz curves for the current income distributio and the…
A: *Answer:
Q: Assume there is a recessionary gap of $200 billion, and that the government has decided to engage in…
A: Answer; Multiplier = 1/(1 - MPC) = 1/(1-0.5) = 2
Q: Suppose that a country has a demand function for a laptop given by P = 30 – Qa and supply function…
A: Before the trade, the domestic output and price will be determined such that demand is equals to the…
Q: Why governments / decision makers try to achieve the stable economic growth and lower inflation?…
A: Inflation refers to a rise in the average level of price of goods and services in an economy.…
Q: Which of the following are non-excludable? a) A particular blu-ray disc of a Batman movie b)…
A: Non-excludable goods are public goods which can be used for consumption by anyone, no one can…
Q: Hi, could you describe the age structures in rapidly growing countries, slowly growing countries,…
A: Population play an important role for growth of an economy . Because it provides human resource for…
Q: Ranjit has applied for a mortgage loan to buy a $ 501000 house. The bank will require a 20% down…
A: Mortgage loan= $501000 Down payment= 20% Time; n= 25 year Nominal interest rate; r= 10.4%
Q: The following graph approximates business cycles in the United States from the first quarter of 1953…
A: Answer: (1). Notice that real GDP trends upward over time but experiences ups and downs in the…
Q: 7-7. You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a…
A: Switching to Straight line method (SLM) occurs in the year when DDB method depreciation is lower…
Q: A monopoly is considering selling several units of a homogeneous product as a single package.…
A:
Q: lease refer to Maxine's & Daisy's PPFs Who has an absolute advantage in pies? Group of answer…
A: In the case of Maxime: Number of tarts = 6 Number of pies = 12 In the case of Daisy: Number of tarts…
Q: 1. Consider the following observations of the choices made by a consumer: Observation Px 1 2 Py $2…
A: The above question is based on the individual's preference for the combinations consumption of three…
Q: QUESTION 3 In the real exchange rate equation shown below, an increase in the U.S. price level means…
A: We have real exchange rate for US and yen re = e× Pus/Pj
Q: Assume that the market demand for a new drink is given by P = 30 – Q and the marginal cost to…
A: For demand function P = a - bQ The Cournot output for each firm is given by the formula: q1 = q2 =…
Q: QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. True O…
A: The balance of trade of a country is known as the difference between the value of the country's…
Q: A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this…
A: A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this…
Q: Please Read the Following Paragraph and Answer the Following Questions :- Oman's government will…
A: Aggregate demand refers to the entire amount of demand for all finished goods and services produced…
Q: QUESTION 4 Which game form is best suited to games with simultaneous decisions about strategy?…
A: There are two types of game forms i.e. Normal form and Extensive form.
Q: Social sustainability begins from the recognition that natural resources-especially the oil fueling…
A: The practice of managing natural resources wisely so that they can support both current and future…
Q: A competitive industry has production processes that generate pollution. ok with studies carried out…
A: Given information P=1500 , Q=250 P=1800, Q=200 MC=1300 MEC=500
Q: Is the lottery a fair way to allocate economic resources? Discuss, referring to both of the…
A: Fairness in the economy is defined as when everyone benefits from the advancement of the economy in…
Q: In this simple insurance model, a company has a monopoly over a small market. There are 100K…
A: Given, Low-risk profile Medium risk profile High-risk profile Number of potential…
Q: The following annual costs are associated with three new extruder machines to be used for use in a…
A: Annual Worth (AW) Analysis is the consistent annual value of all predicted revenues (income) and…
Q: Comprehensively state the criteria and process of selecting appropriate models for time series…
A: Time series forecasting is used when making scientific forecasts based on historical time stamped…
Q: Left Right Up 1, 3 3, 1 Down 2, 2 4, 4 a. Find the Nash equilibrium or equilibria b. Which player,…
A: Nash Equilibria gives the best possible outcome given the strategy of another player.
Q: A consumer spends all her income of £120 on the two goods A and B. Good A costs £10 a unit and good…
A: A consumer maximizes his utility by consuming at the bundle where slope of indifference curve equals…
Q: Which of the following are non-rival? a) A particular blu-ray disc of a Batman movie b) The…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Two firms compete in the market under demand P = 74 - %Q. The firms face costs equal to TC; = 200 +…
A:
Q: Explain the following: i. UTILITY ii. UTILITY FUNCTION iii. LAW OF DIMINISHING MARGINAL UTILITY.…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subpart for you.…
Q: Consider the following scenarios. Think about how each scenario would affect the price of khaki…
A: Note:- Since we can only answer up to three subparts, we'll answer the first one. Please repost the…
Q: In the automobile insurance market, adverse selection occurs when Group of answer choices A) drivers…
A: In the insurance market, there is a high possibility of market failure due to uneven information…
Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a
A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. a. In the short-run, what will a typical plum farm experience? Why? Don't forget to use perfect competition diagram(s) when explaining it.Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. 1. One thing California plum farmers will need to consider is that the cost of water is going to increase (due to water shortages). Consider the cost of water part of the farmers cost of growing plums. Please explain to this capitalist what is expected to happen in the market. Don't forget to use perfect competition…Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. b. In the long-run, what do you think will happen in the plum market? Why? Don't forget to use perfect competition diagram(s) when explaining it.
- Assume that the plum market has lots of different farms. They are producing pretty much the same product. The plum market is very much like a perfectly competitive market. When answering these questions, please use an explanation in words and the diagrams of the perfect competition model. Be as complete as possible capturing all aspects of the perfect competition step-by-step analysis. A capitalist interested in the California plum market has asked you for an analysis. The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity. Please apply the perfect competition model. Question- 1. One thing California plum farmers will need to consider is that the cost of water is going to increase (due to water shortages). Consider the cost of water part of the farmers cost of growing plums. Please explain…Assume that you have a representative farm producing wheat in a perfectly competitive market. The overall demand for wheat is made up of two components – domestic demand and foreign demand. Due to tariff disputes with the U.S., the European Union (EU) has urged its member nations to reduce their demand for U.S. agricultural products (including wheat). As a result, the foreign demand for U.S. wheat has declined by 20% this year. Using diagrams for a representative farm (i.e., wheat producer) and the market for wheat, analyze the impact of this decrease in foreign demand on the farm’s output and profit (loss) in the short-run and long run. Assume that the farm was in long-run equilibrium (i.e., earning zero economic profits) before the decrease in the foreign demand for wheat. Also, assume that the farm was facing a U-shaped AC curve and the typical upward-sloping MC curve. Provide a brief description of all the changes that occur and be sure to clearly denote those changes in your…Perfect competition is an extremely rare type of market in the real world. This is because the conditions necessary for perfect competition are difficult to meet. Write about an example of perfect competition (or at least a market that is very close to perfect competition). Do different sellers in the market you’ve described charge different prices for their product? Does your answer support the idea that this market is perfectly competitive? Explain. Does it seem as if the example you mentioned is allocatively efficient? In other words, does the market produce enough of this good (or does it produce too much or too little)? Explain.
- Suppose that you have a management job at a firm like Estrella River Ranch, a beautiful vineyard and one of more than 200 vineyards growing cabernet sauvignon grapes in California. Assume that the market is perfectly competitive. Also, assume that you cannot instantly change production when demand changes, and grapes cannot be stored, so your firm must sell all of the grapes it grows. The adjacent figure (Figure A) shows the situation at your California vineyard. If demand is high, the price is $3,000 per ton of grapes, and if the price is low, the price is $1,000 per ton of grapes. Producing 300 tons of grapes maximizes your firm's expected profit. Suppose that there is no fixed cost. If demand is high and your firm produces 300 tons of grapes, its economic profit on the tons of grapes between 100 and 300 tons is $ If demand is low and your firm produces 300 tons of grapes, its economic loss on the tons of grapes between 100 and 300 tons is dollars. (Enter a negtive sign to indicate a…F. Highgarden was the seat of House Tyrell and is the regional capital of the Reach, which is the most fertile part of Westeros, supplying the rest of the realm (especially King's Landing) with grain, fruit, wine, and livestock. Such large-scale agriculture industry has led to a competitive fertilizer market. Suppose the market for fertilizer in the Reach is perfectly competitive. Firms in the market are producing at their profit-maximizing output but are currently incurring economic losses. 1. How does the price of fertilizer compare to the average total cost and the marginal cost of producing fertilizer? 2. Draw two graphs, side by side, illustrating the present situation for the typical firm and for the market as a whole. 3. Assuming there is no change in either demand or the firms' cost curves, how will the market adjust in the long run? Explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and…Perfect competition is an extremely rare type of market in the real world. This is because the conditions necessary for perfect competition are difficult to meet. Write about an example of perfect competition (or at least a market that is very close to perfect competition). Find an example of a market that seems to be perfectly competitive. Explain how your example satisfies the four conditions necessary for perfect competition. Do sellers in the market you’ve described brand themselves to consumers? Does this support the idea that this market is perfectly competitive? Explain. Do different sellers in the market you’ve described charge different prices for their product? Does your answer support the idea that this market is perfectly competitive? Explain. Does it seem as if the example you mentioned is allocatively efficient? In other words, does the market produce enough of this good (or does it produce too much or too little)? Explain.
- The graph shows the market demand and supply curves for semiconductor chips, and assume it to be a perfectly (or purely) competitive good. Suppose that it is discovered that semiconductor firms are earning positive economic profits. Assuming all else remains the same, show how the market responds to this discovery in the graph. Demand Supply Quantity PriceEveryone shops for things they need for themselves and for gifts for others. Imagine you are taking an online class, and you are looking to buy a new computer because your old one died. The class starts in two days. The market for computers is very competitive. There are several brands that have similar characteristics, such as storage capacity, processor speed, number of USB ports, etc., but you have owned one that you liked, and you want to buy that same brand, the X-Mark. You have a budget of $1,750. One popular store has the brand you like on sale for $999.99 because other stores sell them for that price. You have a friend at that store who tells you that the store paid $925 for that computer. Please evaluate and explain the willingness to pay, consumer surplus (calculate), demand, producer surplus (calculate), cost, and willingness to sell this transaction. Define these terms in your explanation, not as separate definitions. Incorporate the meaning into your narrative so that…Q2. In Pakistan, there are several farmers in various situations, selling identical products to the market, and many buyers. At the market, it is easy to compare prices. Therefore, agricultural markets often get close to Perfect Competition Market; explain it numerically as well as graphically.