Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Profit Maximization in a perfectly competitive market. Using the new market price that you calculated and assume that your farm's weekly cost function is

 

Profit Maximization in a perfectly competitive market. Using the new market price that you calculated and assume that your farm's weekly cost function is unchanged: New market price from question 3 = $7.22 and TC(Q) = $1036.8 + $2Q + $0.00450 a. What is the new profit maximizing output level (Q) for your farm? b. What are your farm's weekly profits at the new profit maximizing output level? C. Is this market at its long-run equilibrium? If yes, explain why. If not, discuss what will happen to restore the market to its long-run equilibrium.

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

In a perfectly competitive market price equals marginal revenue PMR Also profits are maximized when ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

More Books

Students also viewed these Economics questions

Question

Difference between truncate & delete

Answered: 1 week ago

Question

2. In which brain areas do new neurons form in adultspg99

Answered: 1 week ago