Discuss whether producer theory is helpful for our understanding of firm behaviour. (Hint: you can discuss the merits and or shortcomings of producer theory). Please use examples to support your answer.

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. c. What happens to efficiency during these market changes? Please explain.

Suppose that Nike's Fortnite concert led to a huge spike in economic profit. Why is it likely that this profit would be temporary?

Explain what it means in terms of opportunity cost when Economic profits are zero?