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    Perfect Competition: Long Run

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    I need help in finding the economic profit/loss shading on graph of apples and graph of corn, where apples has P> ATC and corn P< ATC, do not need to answer questions above except for the shading of graph parts.

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    Perfect Competition: Long Run

    Exhibit 2 depicts the market conditions experienced by representative firms in three different price-taker markets. Replicate the diagrams below and answer the following questions.

    a. Which one of the conditions is true for a representative firm in the apple industry:
    P>ATC, P<ATC or P=ATC? Is the firm earning economic profit, economic loss or normal rate of return in the Short Run? What would you expect to happen to the number of firms in this industry in the Long Run? Indicate in the diagram the profit-maximizing level of output and shade in the area corresponding to the firm's economic profit/loss, if any.
    b. Which one of the conditions is true for a representative firm in the banana industry:
    P>ATC, P<ATC or P=ATC? Is the firm earning economic profit, economic loss or normal rate of return in the Short Run? What would you expect to happen to the number of firms in this industry in the Long Run? Indicate in the diagram the profit-maximizing level of output and shade in the area corresponding to the firm's economic profit/loss, if any.
    c. Which one of the conditions is true for a representative firm in the corn industry:
    P>ATC, P<ATC or P=ATC? Is the firm earning economic profit, economic loss or normal rate of return in the Short Run? Will this firm stay in the market in the Short Run? In the Long Run? What would you expect to happen to the number of firms in this industry in the Long Run? Indicate in the diagram the profit-maximizing level of output and shade in the area corresponding to the firm's economic profit/loss, if any.

    [Note: in Perfect Competition
    a. Price Takers
    Price Takers - face horizontal demand for their product
    - Producers whose actions have no effect on the market price of the good he/she sells.
    - Consumers whose actions have no effect on the market price of the good he/she buys.]
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    I provided the explanation of the graph part in my earlier assignment and I provided the graphical depiction of economic profits and losses but due to the capabilities of MS ...

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