Assume that the market for onions is competitive/perfectly competitive market. Further assume that this market is in a long run equilibrium with an equilibrium price of$3for a bag of onions. Ollie's House on Onions is a firm in the market for onions. Ollie's sells 200 bags of onions each week. 1. Using the model of a competitive/perfectly competitive market show what are Ollie's MC, ATC, MR, total revenue. total cost, and economic profit? Show all of this on a graph (see instructions below). 2. Assume that the demand for onions increases and the price per bag of onions goes to$5. Also assume that Ollie's ATC rises to$3.50a bag as he maximizes profit by selling 400 bags a week. What are Ollie's total revenue, total costs and economic profit? Show all of this on a graph (see instructions below). Note: The graphs for each question can be created manually (drawn by hand on paper) or using any software that I can read, scanned and submitted along with this assignment as an uploaded file.Please explain each step. 69Assume that the market for onions is competitive/perfectly competitive market. Further assume that this market is ina long run equilibrium with an equilibrium price of $3 for a bag of onions. Ollie's House of Onions is a firm in themarket for onions. Ollie's sells 200 bags of onions each week.1. Using the model of a competitive/perfectly competitive market show what are Ollie's MC, ATC, MR, total revenue,total cost, and economic profit? Show all of this on a graph (see instructions below).2. Assume that the demand for onions increases and the price per bag of onions goes to $5. Also assume that Ollie'sATC rises to $3.50 a bag as he maximizes profit by selling 400 bags a week. What are Ollie's total revenue, totalcosts and economic profit? Show all of this on a graph (see instructions below).Note: The graphs for each question can be created manually (drawn by hand on paper) or using any software that Ican read, scanned and submitted along with this assignment as an uploaded file.

Perfect competition is a market structure with many small firms producing identical products. Entry…

Answered: Assume that the market for onions is…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 8PA

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Assume that the market for onions is competitive/perfectly competitive market. Further assume that this market is in a long run equilibrium with an equilibrium price of$3for a bag of onions. Ollie's House on Onions is a firm in the market for onions. Ollie's sells 200 bags of onions each week. 1. Using the model of a competitive/perfectly competitive market show what are Ollie's MC, ATC, MR, total revenue. total cost, and economic profit? Show all of this on a graph (see instructions below). 2. Assume that the demand for onions increases and the price per bag of onions goes to$5. Also assume that Ollie's ATC rises to$3.50a bag as he maximizes profit by selling 400 bags a week. What are Ollie's total revenue, total costs and economic profit? Show all of this on a graph (see instructions below). Note: The graphs for each question can be created manually (drawn by hand on paper) or using any software that I can read, scanned and submitted along with this assignment as an uploaded file.

Please explain each step.

69
Assume that the market for onions is competitive/perfectly competitive market. Further assume that this market is in
a long run equilibrium with an equilibrium price of $3 for a bag of onions. Ollie's House of Onions is a firm in the
market for onions. Ollie's sells 200 bags of onions each week.
1. Using the model of a competitive/perfectly competitive market show what are Ollie's MC, ATC, MR, total revenue,
total cost, and economic profit? Show all of this on a graph (see instructions below).
2. Assume that the demand for onions increases and the price per bag of onions goes to $5. Also assume that Ollie's
ATC rises to $3.50 a bag as he maximizes profit by selling 400 bags a week. What are Ollie's total revenue, total
costs and economic profit? Show all of this on a graph (see instructions below).
Note: The graphs for each question can be created manually (drawn by hand on paper) or using any software that I
can read, scanned and submitted along with this assignment as an uploaded file.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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