Purchase Solution

Prices in perfect competition

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

Prices in perfect competition are determined.

Solution Preview

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 ...

Solution provided by:
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.