Part VI: Perfect Competition

stereotypical Ushape-d curve.) The market demand for sovheans is shown in diagram B below. There are currently,F one thousand producers of soybeans, eaoh with ideam'eal. economic costs like those in diagram A below. {I changed the costs so that you can use a more IIIIII._.ll|IIIdIIIIII1|ll|II1IIIIII E. Market Suppl}r and Demand for So neans {millions if soybeans per week) Each So been Producer A. Cost Situation for _l-i|+l|-lll-i1i (thousands of soybeans per week) \"3\". (Ask how much eaoh producer will supplv at the various prices, and gure how much the total stigfrpl},F from all thousand producers together will he at those prices. Note one million is a thousand thousand.) E. Place a dot at the minimum of the average total cost and the average variable cost. A. Plot on diagram E the eurrent market supva curve for soybeans and label this curve Remember that those points represent the minimum level and if we are not at those points the average cost "moat\" be greater than the minimum. This is important later when you are askedto approximate pricee. C. Shade in the appropriate prot (or loss) in diagram A: and calculate the total amount of economic prot or lose each typical soybean producer will make under thoae conditions. Fill in the blanks batonr to aid in your calculation. Price ?) received by each Soybean producer 3 Quantity [Q] produced by each Soybean producer: thousand Soybeans. Average total coat {ATE} for this quantity {approximate}: $ per Soybean. Total revenue for each Soybean producer: $ Total coat for each Soybean producer: $ Total prot for each Soybean producer: $ D. Based on your last answer, is the Soybean market in long-run equilibrium? Why or why not? E. Whatiethelongnmemtilibumpriceintbiamarket'? $ perSoybeen How many Soybeans will each rm produce at this price? thoueand Soybeans per week. How many rroa will be in the market at this price