If the government grants exclusive rights for wheat production to two specific firms INDI and SRI...

 

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If the government grants exclusive rights for wheat production to two specific firms INDI and SRI instead of allowing widespread production across the country and competitive market. This intervention aims to regulate and optimize the wheat market, considering its importance for food security and economic stability. Suppose that the marginal cost of producing 1000 Tons of Wheat is constant at $5000 and the demand for wheat is in the following table: Price (S/1000 Ton) Quantity (in 1000 Tons) 20,000 25 17,500 30 15,000 35 12,500 40 10,000 45 7,500 50 55 60 5,000 2,500 a. If there were many producers of wheat what would be the price and quantity? 1 mark If the government grants exclusive rights for wheat production to two specific firms INDI and SRI instead of allowing widespread production across the country and competitive market. This intervention aims to regulate and optimize the wheat market, considering its importance for food security and economic stability. Suppose that the marginal cost of producing 1000 Tons of Wheat is constant at $5000 and the demand for wheat is in the following table: Price (S/1000 Ton) Quantity (in 1000 Tons) 20,000 25 17,500 30 15,000 35 12,500 40 10,000 45 7,500 50 55 60 5,000 2,500 a. If there were many producers of wheat what would be the price and quantity? 1 mark

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In a perfect competition scenario there are many producers and consumers No single producer or ... View the full answer