The graph below is for a firm with market power. Place point A at the firm's output and price combination. Place point B at the firm's output and price combination if the government wanted to regulate it and set a price ceiling to restrain its market power and have it produce at the level of a perfectly competitive firm. Then answer the questions.

Suppose the government imposes the following production tax on one perfectly competitive firm in an industry: For each unit the firm produces, it must pay $1 to the government. Will consumers in this market end up paying higher prices because of the tax? Why or why not?

Avocados have been proven to bring many health benefits if consumed regularly. Many others including Gavin are huge fans of avocados and have plans to start a new business selling avocados. Assume the market for avocados to be perfectly competitive. Answer the following questions: a. If these firms are able to continue entering the market for avocados, it is likely that they are earning an economic profit. In order to earn an economic profit, firms must ensure that the price is above its Type ATC for Average Total Cost, AVC for Average Variable Cost, TC for Total Cost or VC for Variable Cost. b. Gavin decided to build an avocado farm in Brisbane. It is estimated that Gavin will need to spend $14.55 thousand on farming equipment costs. Gavin will also need to spend $20.95 thousand on labour and overhead costs. However, it is expected that Gavin will be able to sell 5 tonnes of avocados and gain revenue of $47.66 thousand from selling these avocados. Calculate the thousand. Answer to the…

If the Peaches Fruit Company operates in a perfectly competitive industry, then The demand for individual consumers buying peaches from the Peaches Fruit Company should be horizontal. the demand for the Peaches Fruit Company should be perfectly elastic. The market demand for peaches should be horizontal. The demand for the peaches industry should be perfectly elastic.