Answered: 2. "Assuming gator farming is perfectly…

2. "Assuming gator farming is perfectly compettive; explain the long-run competitive equilibrium condition for the typical gator farmer and the industry as a whole."

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 37CTQ: Assuming that the market for cigarettes is in perfect competition, what does allocative and...

See similar textbooks

Related questions

Q: A firm operates in a perfectly competitive market and is producing at the profit-maximizing output.…

A: In a perfectly competitive market, there are many firms producing identical goods. Firms do not have…

Q: 3. Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A: Perfectly competitive market refers to a type of market in which there are a large number of buyers…

Q: 3. Explain under each of the situation, a firm working under a perfectly competitive market would…

A: In perfect competition, a firm maximizes profit where Marginal Revenue equals Marginal Cost, such…

Q: 1. Explain how the long run differs from the short run in pure competition. 2. The basic model of…

A: 1. In the short run, when plants and gear are fixed, the organizations in an absolutely competitive…

Q: A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose…

A: Long Run Equilibrium is defined as the equilibrium that is achieved by a firm when it decides to…

Q: Suppose that food stands in San Francisco is a perfectly competitive industry, and one of them (the…

A: In a perfectly competitive market, a firm is a price taker as it cannot change the market price due…

Q: Explain in detail why it would be okay for you, if you were a business in a purely competitive…

A: After analyzing different types of market forms, it can be seen that the widespread form of market…

Q: 15. The long-run equilibrium (price, output, and a number of firms) in a perfectly competitive…

A: In perfect competition, the long-run equilibrium refers to a state of balance that occurs after all…

Q: 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the…

A: In perfect competition there are large no of buyers and sellers and all the buyers are price taker.…

Q: Assume the market for coffee mugs is perfectly competitive. Firms in the market are producing…

A: A perfectly competitive firm is a price taker and maximizes profit by producing at P =MC

Q: d. What is the firm's total variable cost at this level of output? e. What is the firm's fixed cost…

A: A perfectly competitive market is a theoretical market formation where all companies offer…

Q: 4. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: Perfectly competitive market consist of large number of buyers and sellers, selling homogenous goods…

Q: 1. With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do.…

A: As given market price is $4. By using following formula to calculate missing values of table Total…

Q: 1. Which of the following is NOTa characteristic of a perfectly competitive market? a. Buyers and…

A: Perfectly competitive market is a form of market hypothesis which follows no cost of transactions…

Q: Which of the following examples comes closest to a perfectly competitive market

A: Perfect Competition : It is a market form where there are large number of buyers and sellers selling…

Q: nomic model that underlies farming in the Philippines, why do the assumptions of pure competition…

A: Pure competition is a hypothetical form of competition that is considered to be ideal but does not…

Q: What assumptions in the perfect competition model ensure that economic profit is zero in the long…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: Assume that the tuna fishing industry is perfectly competitive. Which of the following best…

A: perfect competition is a market structure where all the firms are selling an identical or…

Q: perfectly competitive market

A: There are 2 types of market forms: Perfect and Imperfect market form. These includes different…

Q: 1. Using the characteristics of perfect competition, explain why are garlic producers price-takers.…

A: Firms are said to be in perfect competition when the subsequent conditions occur: (1) many firms…

Q: 13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the…

A: The true statement is - The price of fertilizer must be less than average total cost. If firms in…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: 1. Define market power and explain why firms in a perfectly competitive market have none.

A: A market is any place where two or more groups can meet to involved in an economic transaction—even…

Q: 6. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: Quantity delivered refers to the number of things or services that a supplier will make and sell at…

Q: Suppose the book-printing industry is competitive and begins in long-run equilibrium. a. Draw a…

A: a) Typical firm in the industry The Above figure 1 shows the curves of a typical firm in the…

Q: 1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold…

A: We are going to use profit maximisation method for perfectly competitive market to answer this…

Q: 1.The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: A perfectly competitive market is a concept where there are a large number of sellers and buyers…

Q: The market for fertilizer is perfectly competitive. Firms in the market are producing output, but…

A: Since the market is perfectly competitive, the price of the product is set by the industry. Under…

Q: Sketch the graph of the long run supply curve and discuss the process behind. How does this affect…

A: Perfect competition is a market structure in which there are many small firms that produce identical…

Q: #4. Agriculture in india is mostly characterized by perfectly competitive market why? Short answer…

A: Agricultural economics is a branch of economics that focuses on using economic theory to improve…

Q: 1. In perfect competition, price equals marginal cost. Why is this not possible when there are…

A: In a perfectly competitive market, it can be seen that the market output is one at which price…

Q: List the conditions needed for pure competition to exist ?

A: The Pure competition is the competition where there are large number of the buyers and the sellers…

Q: 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry…

A: Hi there! Thank you for the question. Since we only answer one question, we will answer the first…

Q: Q6. Agriculture in India is mostly characterized by Perfectly Competitive Market! What are the…

A: A perfectly competitive market is where there are a large number of producers in a number of…

Question

2. "Assuming gator farming is perfectly compettive; explain the long-run competitive equilibrium condition for the typical gator farmer and the industry as a whole."

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assuming that the market for cigarettes is in perfect competition, what does allocative and productive efficiency imply in this case? What does it not imply?
Will a perfectly competitive market display allocative efficiency? Why or why not?
What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the relationship between the Price, AVC, and ATC for this farmer. b) Explain why the farmer would choose to produce at this loss rather than shutdown.
1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold for $150. Suppose that the cost to produce each of printers initially shows a short span of decreasing marginal costs, followed by an increase in the marginal costs. a. Draw a possible total cost curve for producing printers. For a given quantity (Q) (placed at any location you choose on the horizontal axis), show the corresponding profit. b. Draw the possible marginal cost curve for printer production. Indicate the maximum output level of profit.
1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry and exit of firms affects resource flows and long-run profits and losses
4. The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. a. How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer? b. Draw two graphs, side by side, illustrating the present situation for the typical firm and for the market. c. Assuming there is no change in either demand or the firms' cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market.
8. Suppose the book-printing industry is competitive and begins in long-run equilibrium. a. Draw a diagram describing the typical firm in the industry. b. Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. What hap- pens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patent prevents other firms from using the new technology? c. What happens in the long run when the patent expires and other firms are free to technology? 1 use the
1. Explain how the long run differs from the short run in pure competition. 2. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Explain.
1. Define market power and explain why firms in a perfectly competitive market have none.
3. Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using a diagram and also explain the condition thoroughly. a. P=7; ATC=15; AVC=10 and Q=40b. P=12; ATC=10; AVC=8 and Q=20
1.The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. A. The price of fertilizer must be less than marginal cost. B. The price of fertilizer must be equal to average variable cost. C. The price of fertilizer must be less than average total cost. 2. If firms in the market are producing output but are currently making economic losses,_________ illustrates the present situation for the typical firm in the market, and_________ indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. A.The quantity supplied by each firm will decrease. B.The total quantity supplied to the market will decrease. C.The…