Suppose the figure illustrates the long-run average cost curve (AC) and the marginal cost curve (MC) for a representative firm in a perfectly competitive market. Assume all firms in the industry have the same cost structure. The other figure illustrates the market, with a market supply curve (S) and a market demand curve (D). How many firms are there initially? The industry has firms. (Enter your response as an integer value.) 3 pages Grapher ayer.aspx?cultureld=en-us&theme=econ&style=highered&disableStandhuli Price (dollars per unit) Price (dollars per unit) 64.00 60.00 56.00 52.00- 48.00- 44,00 40.00 36.00- 32.00- 28,00 8 24.00 20.00- 16.00- 12.00- 8.00- 4.00- 0.00 64.00- 60.00 56.00 52.00 48.00- 44.00- 40.00 36.00 32.00- 28,00 24.00 a 20.00 16.00- 0 Quantity S MC Clear all AC 10 Q Q

Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $18, how many pies should Alina's Apple Pies produce  and what is the economic profit or loss per unit?

When should a firm exit the market in the long run?

Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia. The marginal cost curves for both firms are shown in the accompanying graph. a. Suppose the market price of tilapia is $2.50 per pound. Move point A to Ripple Rock’s quantity sold. Move point B to The Fishin’ Company’s quantity sold. b. How many pounds of tilapia do they collectively supply?________thousand pounds   c. To achieve efficient production, The Fishin’ Company should supply _____ ("more", or "less", or "the same")  it is currently producing, and Ripple Rock should supply __________ ("more", or "less", or "the same")  it is currently producing.

Concept: Calculate Profit Farmer Jones grows sugar. The average total cost and marginal cost of growing sugar for an individual farmer are illustrated in the graph to the right. Assume the rharket for sugar is perfectly competitive. According to the graph, farmer Jones will earn profit (positive economic profit as opposed to losses) at any market price above $10 per bushel. (Enter a numeric response using an integer.) Assume that the market price specifically is $24 per bushel. If farmer Jones produces the profit maximizing quantity, what will be her profit? $ To more easily identify the price and quantity, click on the graph to the right, and then adjust the slider to change the price and quantity. Each increment will increase the price by $2. Enter your answer in the answer box and then click Check Answer. 40- 36- 32- MC 28- 24- 20- Price and cost (dollars per bushel) 12- ATC 46 20 30 40 50 60 70 80 90 100 Quantity of Sugar (bushels per month) Question Help Q

Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) C Price and cost (dollars per box) 10- 9- 00 N 1 0 10 MC 20 30 40 50 60 70 80 Quantity of beans (boxes per week) ATC 90 100 N

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well

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.

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2   What is the firm Fixed Cost? Why? Also, use a graph to support your answer

Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $30.00 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) At this level of output, profit will be $. (Enter your response rounded to the nearest dollar.) Peach growers will earn positive economic profit in the short run at any market price above $ per box. (Enter your response rounded to one decimal place.) Price (dollars per box) 40- 36- 32- 28- 24 20 16- 12- 8 4- 10 MC 20 30 40 50 60 70 80 Output (boxes of peaches per day) ▬▬ ATC 90 100 Q