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. Instructions: Enter your answers as a whole number. a. What is the percentage rate of return for these 298 dairies? 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? percent c. Assuming that the normal rate of profit in the economy is 9 percent, and that firms cannot copy each other's technology, will there be entry or exit?

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. Instructions: Enter your answers as a whole number. a. What is the percentage rate of return for these 298 dairies? 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? percent c. Assuming that the normal rate of profit in the economy is 9 percent, and that firms cannot copy each other's technology, will there be entry or exit?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

See similar textbooks

Related questions

Q: Make a list of products you use at home (at least 6). List down the 5 things that you like and…

A: Following products are used at home 1. Gas Cylinders 2. Solar Water Heaters. 3. Toilet Paper 4.…

Q: explain segmented bar chart

A: Bar charts: It refers to the chart in which the data is shown with the help of rectangular bars.…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: A new technology TV costing more than Rs. 1 lakh has been introduced to the market and Mr. Singh is…

A: Below is the given information: The price of TV with new technology = Rs 1 lakh

Q: Tutorial

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: Discuss the way to conduct a systematic review of the product?

A: Systematic review A systematic review is a conceptual analysis. It proceeds to assemble all existing…

Q: i need help with the chart

A: The amount of interest one would be paying every month is known as a monthly interest rate. This…

Q: What is the organization’s main activity at a particular time?

A: Many people and activities make up an organization. Companies strategize for the future while also…

Q: What is a CD and how do they work?

A: Certificates of deposit (CD) are secured form of long period of time deposits. The money is kept in…

Q: What is the Excel method?

A: Excel is a computer spreadsheet program that consist of rows and columns. Excel is used to store…

Q: Outline and explain the guidelines for ensuring e-invitations are successful.

A: E-invitation, often known as an electronic invitation, is a type of invitation that is sent online…

Q: d. Assuming no trading between the two, if both countries wanted to have equal numbers of tons of…

A: d) In the absence of commerce, each country would want to consume the same quantity of granite and…

Q: Find three words related to our topic media information literacy

A: Practices that enable users to acquire, critically assess, create, and manipulate media are referred…

Q: Show that at the solution you found in (c), the tangency condition is satisfied: M RS = p1/p2. (d)…

A: The process of constrained optimization is employed to maximize or minimize an objective function…

Q: at is tally mark

A: Tally marks, often known as hash marks, are a system of unary numerals. They are a type of numeral…

Q: Imagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks…

A: Answer:- (d) The town's citizens were free-riders.

Q: set of guidelines for writing effective e-mails

A: We want our email recipients to take our message seriously, but we frequently don't give it much…

Q: KYC Policy Know your Customer What is the registration process to be tether customer?

A: Know Your Customer (abbreviated as KYC) refers to an approach of gathering information related to…

Q: What reading style is needed for the following tasks? E ain your choice to your 1. looking for nice…

A: There are different types of reading style present some are as follows: 1- Extensive reading : There…

Q: How HubSpot company managed to increase customers and sale?

A: Knowing the sales volume can help you spot under performing goods and improve your sales process…

Q: How did you get P* and Q*? What is the solution?

A: Equilibrium in the market occurs at such a price where demand is equal to supply.

Q: How to calculate hourly recovery tariff

A: Hourly recovery tariff, also known as an hourly recovery rate, is a term used in cost accounting and…

Q: The product was in regards to bread

A: When talking about economic rent, it refers to the additional benefits that a firm collects due to…

Question

Info in images

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.
Instructions: Enter your answers as a whole number.
a. What is the percentage rate of return for these 298 dairies?
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?
percent
C. Assuming that the normal rate of profit in the economy is 9 percent, and that firms cannot copy each other's technology, will there
be entry or exit?
(Click to select)
d. Will the change in the number of firms affect the two that earn $22 for every $200 invested?
Yes, because those two firms can claim a larger market share.
No, because the exiting firms didn't belong in the industry.
Yes, because those exiting firms will spread their technology.
No, because those two firms are too small.
e. What will be the rate of return earned by most firms in the industry in long-run equilibrium?
percent
f. If firms can copy each other's technology, what will be the rate of return eventually earned by all firms?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

V2
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?
A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Instructions: Enter your answers as a whole number. a. Use the table below to help answer the following questions. How many bushels will each of the farmer's five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? That Acre's That Acre's Acre TR MR Yield (bushels) Revenue $0 1 2 3 4 b. If the marginal cost of planting and harvesting an acre is $17,500 per acre for each of the five acres, how many acres should the farmer plant and harvest? acres
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
what is her ATC if she prints 10000?
A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Instructions: Enter your answers as a whole number. a. Use the table below to help you answer the following questions.. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre? Create a table with the amount of acres (1-5), that acre's yield (bushels), that acre's revenue, TR, and MR. b. If the marginal cost of planting and harvesting an acre is $7,000 per acre for each of the five acres, how many acres should the farmer plant and harvest? acres
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’ profits if he changed his price to $8. Why? What about a price of $5?
Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as follows: Labor Food and water Electricity Vehicle lease Rent Interest on loan for equipment Jamal could earn $2,000 per year as a farmer. However, he prefers to run the restaurant. In fact, he would be willing to pay up to $550 per year to run the restaurant rather than to farming. Is the restaurant making an economic profit? Calculate the economic profits? 2. Should Jamal stay in the restaurant business? Explain your answer. $4,000 1000 200 300 1000 2,000
Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Output per Day Total Cost Variable Cost АТС AVC MC $1.00 1 2.50 1.50 2.50 1.50 1.5 3.50 2.50 1.75 1.25 1 3 4.20 3.20 1.40 1.067 0.7 4 4.50 3.50 1.125 0.875 0.3 5.20 4.20 1.04 0.84 0.7 6.80 5.80 1.33 0.97 1.6 7 8.70 7.70 1.24 1.1 1.9 8 10.70 9.70 1.34 1.21 If the current equilibrium price in the pencil market is $1, how many pencils will Frances produce, what price will she charge, and how much profit (or loss) will she make?
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 $ $ $ $ $ $ $ $
Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $1.00, what Q would a profit-maximizer / loss- minimizer choose to produce? Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120
Last answer was wrong. Don't give incorrect answers plz