There are 300 farms in the perfectly competitive local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. Instructions: Enter your answers as whole numbers. a. What is the percentage rate of return for these 298 dairies? ( 8 percent. b. The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return? 11 percent. c. Assuming that the normal rate of profit in the economy is 9 percent, and farms cannot copy each others' technology, will there be entry or exit? Ext Will the change in the number of farms affect the two that earn $22 for every $200 invested? Yos What will be the rate of return earned by most farms in the industry in long-run equilibrium? O percent. If farms can copy each others' technology, what will be the rate of return eventually earned by all farms? O percent.

There are 300 farms in the perfectly competitive local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. Instructions: Enter your answers as whole numbers. a. What is the percentage rate of return for these 298 dairies? ( 8 percent. b. The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return? 11 percent. c. Assuming that the normal rate of profit in the economy is 9 percent, and farms cannot copy each others' technology, will there be entry or exit? Ext Will the change in the number of farms affect the two that earn $22 for every $200 invested? Yos What will be the rate of return earned by most farms in the industry in long-run equilibrium? O percent. If farms can copy each others' technology, what will be the rate of return eventually earned by all farms? O percent.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 4P

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There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. What is their percentage rate of return? The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return? Assuming that the normal rate of profit in the economy is 10 percent, will there be entry or exit? Will the change in the number of firms affect the two that earn $22 for every $200 invested? What will be the rate of return earned by most firms in the industry in long-run equilibrium? If firms can copy each other’s technology, what will be the rate of return eventually earned all firms?
The following table presents the expected cost and revenue data for the Tucker Tomato Farm. The Tuckers produce tomatoes in a greenhouse and sell them wholesale in a price taker market. Complete the table by calculating the firm's marginal cost, average variable cost, average total cost, and profit schedules. Round your answers to the nearest whole dollar figure. For example, round $316.66 to $317, or $321.42 to $321. Output (tons) 0 1 2 3 4 5 6 7 00 8 9 10 Total Cost ($ Per Ton) $500 $600 $650 $750 $900 $1,100 $1,350 $1,750 $2,300 $3,000 $3,900 Marginal Cost $ $ $ $ $ $ $ Average Variable Cost $ |$ Average Total Cost $ $ $ $ $ $ $ $ Profit at $250 per ton -$500 $ $ ԱՊԱ Դ || $ $ Profit at $200 per ton -$500 $ $ $ $ $ $ $ Profit at $150 per ton -$500 $ $ $ $ $ $ $ $
Please help with e and f. Thank you so much!
The Watts Brewing Company owns valuable water rights that allow it to produce better beer than competitors. The company sells its beer at a premium and reports a large profit each year. Is this firm necessarily making economic profits? Explain.
Look at Table 8.13. What would happen to the firm’s profits if the market price increases to $6 per pack of raspberries? Quantity Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $62 $62 - $0 −$62 10 $90 $62 $28 $60 −$30 20 $110 $62 $48 $120 $10 30 $126 $62 $64 $180 $54 40 $144 $62 $82 $240 $96 50 $166 $62 $104 $300 $134 60 $192 $62 $130 $360 $168 70 $224 $62 $162 $420 $196 80 $264 $62 $202 $480 $216 90 $324 $62 $262 $540 $216 100 $404 $62 $342 $600 $196 Table8.13
You turned down a job at ABC Corp last year that would have paid you $125,000 per year and started your own company. When you calculated your economic profit, it came out at $0. You expect the business will be exactly the same next year. ABC called and said you could still take the job. You should... A. Keep running your company as-is. B. Keep running your company but pay yourself less. C. Keep running your company but pay yourself more. D. Shut down your company and take the job at ABC.
Strategic alliances and networking help to enhance the business competitiveness of a firm. Please discuss how and why it happens.
Please answer all 1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred Group of answer choices a. Sunk costs b. Average costs c. Opportunity costs d. Marginal costs 2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? Group of answer choices a. Potential buyers will lose buying power at the dealer b. It may sell the remaining cars at huge discounts to hit the quota c. It creates an incentive to sell cars from different manufacturers d. It would ruin the relationship between dealer and manufacturer…
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 8 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as a whole number. a. What is its percentage rate of return? percent b. Is the firm earning an economic profit? (Click to select) V If so, how large? percent c. Will this industry see entry or exit? (Click to select) V d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium? percent
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Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive: Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’s profits if he changes his price to $8. Why? What about a price of $5? What is his profit-maximizing price?
The following table presents the expected cost and revenue data for the Tucker Tomato Farm. The Tuckers produce tomatoes in a greenhouse and sell them wholesale in a price taker market. Complete the table by calculating the firm's marginal cost, average variable cost, average total cost, and profit schedules. Round your answers to the nearest whole dollar figure. For example, round $316.66 to $317, or $321.42 to $321. Output (tons) Ton) 0 HUAWN Total Cost 10 ($ Per $100 $400 $500 $700 $1,000 $1,400 $1,900 $2,550 $3,200 $4,500 $5,800 Marginal Cost AAAAAAAAAA $ $ $ $ $ $ $ $ $ $ Average Variable Cost $ $ $ $ $ $ $ $ $ Average Total Cost $ $ $ $ $ $ $ $ $ $ Profit at $500 per ton -$100 $ $ $ $ $ $ $ $ $ $ Profit at $400 per ton -$100 $ $ $ $ $ $ $ $ $ $ 1 Profit at $300 per ton -$100 $ $ $ $ $ $ $ $ $ $