Question #1: Assume agricultural products are identical and there are many sellers and buyers of agriculture products:

1. State the profit maximizing condition for each seller of agricultural products.
2. Graphically, show the market equilibrium of the industry and a seller where economic profits equal zero. Please include marginal revenues, demand curve, price and quantity at the equilibrium.
3. From part b above, if the number of buyers increases, show the new short run equilibrium for a seller and the industry as a whole.

Question #2: Using the following graph to answer the following questions: