3. Apples are produced in a perfectly competitive industry. Assume that there are 100 identical firms in this industry. Below are graphs for the market supply and demand as well as the cost curves of these firms. 6. 6. MC ATC AVC 1 100 200 300 400 500 600 3 Q(kg) q(kg) (a) Draw the market supply curve for apples. (b) What are the market price and quantity for apples? How much does each firm produce? (c) Caleulate the amount of profit or loss for a firm. (d) Do you expect there to be entry of new firms into this industry, the exit of firm from this industry or neither of the above? Briefly explain. (e) What is the long run equilibrium price of apples and exactly how many (identical) firms will be producing the good? P(TL/unit) P(TL/unit) 2.

3. Apples are produced in a perfectly competitive industry. Assume that there are 100 identical firms in this industry. Below are graphs for the market supply and demand as well as the cost curves of these firms. 6. 6. MC ATC AVC 1 100 200 300 400 500 600 3 Q(kg) q(kg) (a) Draw the market supply curve for apples. (b) What are the market price and quantity for apples? How much does each firm produce? (c) Caleulate the amount of profit or loss for a firm. (d) Do you expect there to be entry of new firms into this industry, the exit of firm from this industry or neither of the above? Briefly explain. (e) What is the long run equilibrium price of apples and exactly how many (identical) firms will be producing the good? P(TL/unit) P(TL/unit) 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question in image. Stuck on this economic question for hours. If you don't know how to slove it, let someone else try before rejecting it Thanks :)
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