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Afarmer keeps beehives and sells 250 quarts of honey per month. The honey market is in perfect competition, and the price of a quart of
Afarmer keeps beehives and sells 250 quarts of honey per month. The honey market is in perfect competition, and the price of a quart of honey is $15. The farmer has an average variable cost of $5 and an average xed cost of $3. At 250 quarts per month, the marginal cost is $10. Answer the following questions with marginal analysis and prot-maximization decision nJle. Provide mathematical work to explain your answer whenever possible. 1. {1 point) How much is the marginal revenue? 2. {2 points) At 250 quarts of honey, is the farmer maximizing his prot? If not, what should the farmer do? Apply marginal analysis to answer this question. 3. {2 points} How much is the farmer's economic prot {or economic loss) at selling 250 quarts of honey? 4. {2 points) Based on the above answers, is the market operating in the short- run or in the long mm? Explain why? 5. {1 point) |Can you give another example of perfect competition market that could meet the characteristics of perfect competition
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