Rosegrowing is a perfectly competitive industry and all rose growers have the same cost curves.The market price of roses is $11 a bunch, and each grower maximizes profit by producing 400 bunches a week.The average total cost of producing roses is $21 a bunch. Minimum average variable cost is $9 a bunch, and the minimum average total cost is $13 a bunchWhat is a rose grower's economic profit in the short run and how does the number of rose growers change in the long run?In the short run, each grower is>>> Answer with a positive numberBecause firms in the industry aresome firms willof $a week.A incurring an economic loss, exitOB. incurring an economic loss, enter and some firms will exitOC. making zero economic profit, shut down and exitOD. making an economic profit, enterOE making an economic profit, exit and some firms will enteremthe market in the long run Rosegrowing is a perfectly competitive industry and all rose growers have the same cost curvesThemarket price of roses is $11 a bunch, and each grower maximizes profit by producing 400 bunches a weekThe average total cost of producing roses is $21 a bunch Minimum average variable cost is $9 a bunch, and the minimum average total cost is $13 a bunchWhat is a rose grower's economic profit in the short run and how does the number of rose growers change in the long run?OB incuring an economic loss; enter and some firms will extOC. making zero economic profit, shut down and extOD. making an economic profit, enterOE making an economic profit, exit and some firms will enterIn the long run, the number of rose growers willOA decreaseOB increaseOC not changeCETO

In a perfectly competitive industry, the firm works at a level where the market price is equal to…

Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $11 a bunch, and each grower maximizes profit by producing 400 bunches a week. The average total cost of producing roses is $21 a bunch. Minimum average variable cost is $9 a bunch, and the minimum average total cost is $13 a bunch What is a rose grower's economic profit in the short run and how does the number of rose growers change in the long run? In the short run, each grower is >>> Answer with a positive number Because firms in the industry are some firms will of $a week OA incurring an economic loss, exit OB. incuring an economic loss, enter and some firms will exit OC. making zero economic COTTE the market in the long run.

Rose growing is a perfectly competitive industry and all rose growers have the same cost curves. The market price of roses is $11 a bunch, and each grower maximizes profit by producing 400 bunches a week. The average total cost of producing roses is $21 a bunch. Minimum average variable cost is $9 a bunch, and the minimum average total cost is $13 a bunch What is a rose grower's economic profit in the short run and how does the number of rose growers change in the long run? In the short run, each grower is >>> Answer with a positive number Because firms in the industry are some firms will of $a week OA incurring an economic loss, exit OB. incuring an economic loss, enter and some firms will exit OC. making zero economic COTTE the market in the long run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

a) A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed cost is $15,000 per year. Should it produce or shut down in the short run? Should it stay in the industry or exit in the long run? b) Suppose instead that this business has a fixed cost of $6,000 per year. Should it produce or shut down in the short run? Should it stay in the industry or exit in the long run?
Explain in detail how purely competitive markets, in the long-run, know how to adjust to and provide the correct output, at the correct price. Give an example of a good or service you might buy that is closest to being in a purely competitive market. Explain your logic.
Gg.227.
A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
A firm sells 1,000 units per week. Suppose the average variable cost is $15, and the average cost is $55. In the short run, the break-even price is:___?_____. . In the long run, the break-even price is . Suppose the firm charges a price of $5 per unit. Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Time Continue to Produce Shut Down Short Run ? ? Long Run ? ?
Walt's Turkey Farm produced 400 turkeys last week. The marginal cost was $15 a turkey, average variable cost was $29 a turkey, and the market price was $33 a turkey. Did Walt maximize profit? If Walt did not maximize profit and if nothing has changed, will he increase or decrease the number of turkeys he produces to maximize his profit this week? profit, so if nothing changes he will Walt is the number of turkeys he produces to maximize his profit this week. O A. maximizing; decrease O B. maximizing; increase OC. maximizing; not change O D. not maximizing; increase O E. not maximizing; decrease
The graph shows the revenue and cost curves for an individual producer in the maple syrup industry. The demand for maple syrup increases and the market price rises to $40 a gallon. On the graph, draw the maple grower's marginal revenue curve and label it MR₁. Draw a point to show the grower's profit-maximizing price and quantity in the short run. Also show the grower's economic profit or economic loss in the short run and label it. >>> Draw only the objects specified in the question. Price and cost (dollars per gallon) 60 55- 50- 45- 40-40 35- 30- 25 100 200 300 400 500 MC ATC MRO 600 600 700 800 900 Quantity (thousands of gallons per year) B Select Line Point ☐ Rectangle