The maximum amount that housing developers and farmers are willing to pay for land is depicted in the table above: 1. How far from the CBD will developers be willing to build houses? 2. If the market price of a harvest increases by $100,00 but farmer costs remain the same, what will happen to the edge of the city over the long run?

Explain different types of competition and  also state why is competition good for the consumer from an economics perspective

1. Why is water, which is essential to life, so cheap, while diamonds, which are not essential to life, so expensive? Explain your answer using total utility (TU) and marginal utility (MU). 2. Discuss the advantages of perfect competition. 3. What is the shape and elasticity of the demand curve facing a perfectly competitive firm? Why? 4. How does the firm determine how much to produce in the short run?

The world exists for one year. The Farmer seeks to maximize her profits. The farmer must choose whether to grown beans or berries. Here are some data about the two products. The farmer owns 1 acre of land and 0 gallons of water. Crop Beans Berries Price per unit of output (in $) 4 X Output put acre of land 24 28 Gallons of water used per unit of output 1 2 Labor cost per unit of output (in $) .2 .2 The profit maximizing farmer will; A. Grow beans if the price of purchasing water is less than $2 per gallon B. Earn equal profits growing Beans or Berries regardless of the price of water C. Seek to sell his water and thus will grow beans. D. Grow berries if X>=8 The farmer would sell this farm for any offer greater than $340 dollars