econ150_document_Grp-Assignment-6 - Word (Product Activation Failed) Table Tools X File Home Insert Design Layout References Mailings Review View Acrobat Design Layout Tell me what you want to do. Share Cut Calibri (Body; - 11 - A A |Aa - |A = - = - F . . > 21 1 Find - Be Copy AaBbCcDd AaBbCcDd AaBbC AaBbCc AaBbCc[ Aab AaBbCCD AuBbCCDd Replace Paste Format Painter BIU - abe X2 X' A- Z . A . = = = 1 0. 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Subtitle Subtle Em... = Select - Create and Share Request Adobe PDF Signatures Clipboard Font Paragraph Styles Editing Adobe Acrobat 1. Fill in the following table for a product in a purely competitive market. The market price for the good is $32. Use the total revenue-total cost approach to (a) Evaluate at what quantity the firm can maximize its profits. (b) What is the marginal revenue at that quantity? (c) What is the marginal cost at that quantity? Total Total fixed Total variable Total cost Total Profit/ Loss product cost cos evenue output $50 550 S 50 5 55 50 2 50 15 65 100 BYU-Idaho ECON 150: Microeconomics 3 50 30 80 150 4 50 50 100 200 5 50 75 125 250 6 50 105 155 300 7 50 140 190 350 50 185 235 Page 1 of 4 644 words DE English (United States) 1 58 - + 73%X econ150_document_Grp-Assignment-6 - Word (Product Activation Failed) Table Tools Share File Home Insert Design Layout References Mailings Review View Acrobat Design Layout Tell me what you want to do.. Find - Cut Calibri (Body; ~ 11 - A A |Aa - |A = - = - F - 2 21 1 AaBbCcDd AaBbCcDd AaBbC AaBbCc AaBbCcC Aab AaBbCCD AuBbCCDd Be Copy at Replace Paste BI U - abe X2 X' A - Z . A . = = 1. 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Subtitle Subtle Em... = Create and Share Request Select - Format Painter Adobe PDF Signatures Editing Clipboard Font Paragraph Styles Adobe Acrobat 51 185 235 2. Use the graph to the right and the letters in it to answer these questions: MR ATC (a) What is the profit-maximizing level of AVC output? (b) What is the area of economic profit? Output (c) What is the per-unit amount of profit at the profit-maximizing level of output? 3. Consider the two graphs below. Graph A represents a typical firm in a purely competitive industry. Graph B represents the supply and demand conditions in that industry. The dashed horizontal line represents the current market price for firms and for the industry. In the long run, what will happen to (a) the number of firms in the industry, (b) the supply curve, (c) price, and Firm Industry (d) profit? BYU-Idaho 2 ECON 150: Microeconomics - + 85% Page 2 of 4 644 words E English (United States)X econ150_document_Grp-Assignment-6 - Word (Product Activation Failed) Table Tools File Home Insert Design Layout References Mailings Review View Acrobat Design Layout Tell me what you want to do.. Share Cut Find - Calibri (Body; ~ 11 - A A |Aa - |A = - = - F- 3 21 1 AaBbCcDd AaBbCcDd AaBbC AaBbCc AaBbCc[ Aab AaBbCCD AaBbCCDd Be Copy at Replace Paste 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Subtitle Subtle Em... = Create and Share Request BI U - abe X2 X' A - Z . A . = = = = 1 0. Select - Format Painter Adobe PDF Signatures Font Paragraph Styles Editing Adobe Acrobat Clipboard 4. Read the following article: Your Avocados and Olives Are Pricier Because Fat Is In Fashion. a. In one to three sentences, briefly summarize the main point(s) of this article. b. Draw two graphs side by side (like in problem 3 above) for an individual firm in a competitive market and the accompanying market. Draw them so they are in long run equilibrium initially c. In the article, it mentions that the producers of avocados, fish, and butter are struggling to increase output (quantity supplied). Why? d. Draw the effect described in part d on your graph of the market in part c. e. What happened to the equilibrium price as a result? What does the article say has happened to average prices in these markets since 2013? f. Looking at your graph in part c: As a result of the change in market prices, what happens to the quantity each individual firm supplies? What kind of profits (positive, negative, or zero) are these firms receiving? - + 85% Page 3 of 4 644 words E English (United States)econ150_document_Grp-Assignment-6 - Word (Product Activation Failed) Table Tools X File Home Insert Design Layout References Mailings Review View Acrobat Design Layout Tell me what you want to do. Share Cut Find - Calibri (Body; ~ |11 - A A |Aa . |4 := - = - F . . > 21 1 AaBbCcDd AaBbCcDd AaBbC AaBbCc AaBbCcC Aab AaBbCCD AaBbCCDd Be Copy at Replace Paste BI U - abe X2 X' A - Z . A . = = 1. 0 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Subtitle Subtle Em... = Select - Create and Share Request Format Painter Adobe PDF Signatures Clipboard Font Paragraph Styles Editing Adobe Acrobat . Again, thinking about your graph and not the article: In the long run, what will happen as a result of these profits mentioned in part s? h. According to the article, what is true about olives, avocados and almonds that might cause the long run to take a really long time to arrive? Thinking of your graph again: As more firms enter the market in the long run, what should happen to the price in the market? J. Salmon has experienced this same increase in demand. "From 1998 to 2008, global salmon production grew an average of _ 96 a year." Since then, though, the growth rate has been a lot slower. This has been caused by something that has increased the costs of (basically) all salmon producers. What are a couple of things that have happened at some salmon fisheries that have increased costs? (one is a disease and the other has a specific example in Norway and Scotland.) K. These increased costs in production affecting all salmon producers will lead to a new long run equilibrium price that is than before. This leads to an -sloping long run supply curve for salmon. Page 3 of 4 644 words E English (United States) - + 85%