questions

MARKET STRUCTURES 1. On the axes below, draw graphs for a perfectly competitive market for apples and an individual farmer in that market. Assume the market is producing at its long-run equilibrium level of output. Explain the situation experienced by the individual farmer when the market is in its long-run equilibrium. Explain: b. Explain whether the apple market was achieving allocation efficiency: productive efficiency:2. The price of pears, a close substitute for apples, rises. illustrate and explain the short-run effect of higher pear prices on the market for apples and for a typical apple farmer. Explain: 3. How will the apple market adjust to the higher prices of pears in the long-run? Show and explain the effect on the market for apples and on an individual apple farmer in the long-run. Explain: 4. Show and explain the effect that lower tropical fruit prices will have on the market for apples and apple farmers in the long-run. Explain: 5. The market for energy drinks is monopolistically competitive and currently in a state of long-run equilibrium. On the graph below, show the costs, demand and marginal revenue curves for Rad Ball, one of the dozens of rms producing energy drinks. Explain the shape of Rad Ball's Demand curve