Assume agricultural products are identical and there are many sellers and buyers of agriculture products: State the profit-maximizing condition for each seller of agricultural products. Graphically, it shows 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. 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.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
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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, it shows 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.
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