Prices in perfect competition
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Wheat is produced under perfectly competitive conditions. Individual wheat farmers have U- shaped,long run average cost curves that meet the marginal cost curves when 800 bushels are produced and the marginal cost at that output level is $4 per bushel.
If the market demand for wheat is given by Q = 2 400 000 - 200 000p, what would be the price of wheat in the long run? How much total wheat will be demanded? How many wheat farmers will there be? Graph your results.
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Prices in perfect competition are determined.
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Wheat is produced under perfectly competitive conditions. Individual wheat farmers have U-shaped long run average cost curves that meet the marginal cost curves when 800 bushels are produced and the marginal cost at that output level is ...
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- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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