Principles of Microeconomics (Assignment (3 . 000,2$. ( ) ( ) : . . Complete the following short-run cost table using the information provided OTTO ACT ACTO ATC MC 12 0 10 2 12 3 14 You operate in a competitive market and produce wheat in this market. You are part of a very large number of wheat farmers, and you own ten dunams of land that are devoted to cultivating them annually, and every dunum of land you cultivate brings you an annual profit of $ 2,000 After a while, as a result of intense competition, wheat prices began to decline, and with that your profits began to decline How will you (as a competitive entity within this competitive market) face this decline in prices, and how will you try to increase and maximize your profits? 2-List (in a table) your fixed economic costs and your variable costs on this project 3. 3-Have you noticed opportunity costs? Explain it, if any. Is it classified under fixed or variable costs? Why? 4. 4- Is the cost of producing a ton of wheat on your farm equal to the cost of producing a ton on your neighbor's farm which has an area of half a dunum? Explain your answer in detail using the concepts of increasing returns to scale and economies of scale. What is the shape of the demand curve-5 ? for your wheat products? Why Complete the following short-run cost table using the information provided O TFC AFCTVO ANC TOATE MC 0 13 : 12 10 1 Principles of Microeconomics (Assignment (3 . 000,2$. ( ) ( ) : . . Complete the following short-run cost table using the information provided OTTO ACT ACTO ATC MC 12 0 10 2 12 3 14 You operate in a competitive market and produce wheat in this market. You are part of a very large number of wheat farmers, and you own ten dunams of land that are devoted to cultivating them annually, and every dunum of land you cultivate brings you an annual profit of $ 2,000 After a while, as a result of intense competition, wheat prices began to decline, and with that your profits began to decline How will you (as a competitive entity within this competitive market) face this decline in prices, and how will you try to increase and maximize your profits? 2-List (in a table) your fixed economic costs and your variable costs on this project 3. 3-Have you noticed opportunity costs? Explain it, if any. Is it classified under fixed or variable costs? Why? 4. 4- Is the cost of producing a ton of wheat on your farm equal to the cost of producing a ton on your neighbor's farm which has an area of half a dunum? Explain your answer in detail using the concepts of increasing returns to scale and economies of scale. What is the shape of the demand curve-5 ? for your wheat products? Why Complete the following short-run cost table using the information provided O TFC AFCTVO ANC TOATE MC 0 13 : 12 10 1
