Mr. Jones has approximately 300 dairy cattle that he milks twice a day. Every morning at 9 a.m., the wholesaler stops on his route with his tanker truck and picks up Mr. Jones' milk. The milk is then taken to the processing plant, where it is combined with hundreds of other dairy farmers' milk from around the area. Most of the milk is processed and put into bottles or cartons and shipped to local stores. Some of the milk is used to produce other dairy products. Competitive Situation: Explanation:

Number of cattle = 300 Number of times to milk in a day = 2Competitive Situation: Perfectly competition Milk is a homogeneous product and a homogeneous product is the key characteristic of a perfectly competitive market. therefore we can conclude that the given case belongs to the perfectly competitive market.Answer. Perfectly competition

Answered: Mr. Jones has approximately 300 dairy…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mr. Jones has approximately 300 dairy cattle that he milks twice a day. Every morning at 9 a.m., the wholesaler stops on his route with his tanker truck and picks up Mr. Jones' milk. The milk is then taken to the processing plant, where it is combined with hundreds of other dairy farmers' milk from around the area. Most of the milk is processed and put into bottles or cartons and shipped to local stores. Some of the milk is used to produce other dairy products.

Competitive Situation:

Explanation:

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