The high price for shiitakes has caused more farms to enter the industry, and you, as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The high price for shiitakes has caused more farms to enter the industry, and you, as well as some other farmers, have expanded the scale of your production. The price of mushrooms is starting to drop as more farmers enter and more farms expand their scale of production. Hoping to stay ahead of the curve, you try to anticipate what the price will be in the long run. You gather up some cost data from your company and call up a friend of yours who also owns a mushroom farm. You realize that your cost structures are pretty similar, and you use the information to create a long-run marginal cost curve and long-run average cost curve for a "typical" mushroom farm. Price (dollars per pound) $ 28 24 20 16 12 8 4 10 20 30 LMC LAC 40 50 60 70 80 90 Quantity (thousands of pounds per year) Assuming every mushroom farm has these same cost curves, what price do you expect to see prevail in the long run? Type value into the blank space provided below, and click Submit. The high price for shiitakes has caused more farms to enter the industry, and you, as well as some other farmers, have expanded the scale of your production. The price of mushrooms is starting to drop as more farmers enter and more farms expand their scale of production. Hoping to stay ahead of the curve, you try to anticipate what the price will be in the long run. You gather up some cost data from your company and call up a friend of yours who also owns a mushroom farm. You realize that your cost structures are pretty similar, and you use the information to create a long-run marginal cost curve and long-run average cost curve for a "typical" mushroom farm. Price (dollars per pound) $ 28 24 20 16 12 8 4 10 20 30 LMC LAC 40 50 60 70 80 90 Quantity (thousands of pounds per year) Assuming every mushroom farm has these same cost curves, what price do you expect to see prevail in the long run? Type value into the blank space provided below, and click Submit.
Expert Answer:
Answer rating: 100% (QA)
20 per pound In the long run a competitive firm since there is f... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Dudley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dudley Manufacturing's operations: Current Assets as of December 31...
-
Ravenna Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Ravenna Manufacturing's operations: Current assets as of December 31...
-
Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's operations: Current Assets as of December 31 (prior...
-
Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during 2014 are as follows: Partnership net income for the year ended December 31, 2014; is $68,400...
-
In 2013, its first year of operations, The Genius Corp. had a $ 700,000 net operating loss when the tax rate was 30%. There are no differences between book (GAAP) income and taxable income. In 2013,...
-
Calculate Jensens alpha. Using the following output to answer each of the question: Hedge Fund Rp = 26% percent = 20% percent Pp=-0.4 Market RM = 15% percent = 15% percent Risk Free Rate RF = 1%...
-
How to prepare a deposition summary in different ways?
-
Liquid flow out of a spherical tank discharging through a valve can be described approximately by the following nonlinear differential equation: where the variables used arc consistent with other...
-
Oriole Trucking purchased a tractor trailer for $141000. Oriole uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1000000 miles over its 10-year useful...
-
X rays with initial wavelength 0.0665 nm undergo Compton scattering. What is the longest wavelength found in the scattered x rays? At which scattering angle is this wavelength observed?
-
1. Jay contributes a property with a fair market value of $16,000 and an adjusted basis of $5,000 to a partnership in exchange for an 8 percent partnership interest. a . Calculate the amount of gain...
-
A variety of opium poppy ( Papaver somniferum L .) having lacerate leaves was crossed with a variety thathas normal leaves. All the F 1 had lacerate leaves.Two F 1 plants were interbred to produce...
-
Your Company has instituted a strict "No Mask, No Entrance" policy and you have been assigned to stand at the front door and enforce it. explain how you would be the company bouncer based on a Driver...
-
Capello & Sons Ltd. purchased a truck on January 1, 2015 for $60 000. It is estimated that the truck will have a $5 000 salvage value at the end of its five-year useful life. It is also estimated...
-
What is a gamete? A zygote? How many chromosomes dothey have (n or 2n)? Are they haploid or diploidcells? Describe two different aspects of meiosis thatcontribute to genetic variation between...
-
Farmers in LA,California are dealing with more frequent droughts, floods, wildfires, and other natural events that inhibit their production of food. Suppose that in one specific year, a severe...
-
2.1 Verify that the function given is a particular solution to the following equation and find the particular solution satisfying the initial condition given. dy =(y-1)+1,x> y(x)=x= dx [19]
-
According during to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,088 in 2018. Consider the population of "last-minute" filers who mail...
-
Comparative financial statement data of Tanfield, Inc., follow: 1. Market price of Tanfields common stock: $ 47.67 at December 31, 2014, and $ 27.84 at December 31, 2013 2. Common shares outstanding:...
-
You have been offered an entry- level marketing position at two highly respectable firms: one in Los Angeles, California, and one in Sioux Falls, South Dakota. What quantitative and qualitative...
-
Wilmington Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Wilmington varies widely; pharmacists can spend...
-
Three brothers, Daniel, David and Derrick have been discussing their respective taxation affairs and how much they dislike paying tax. None of them are Scottish taxpayers. Daniel's income for tax...
-
Roseanne is a Scottish taxpayer. She starts trading on 1 July 2023 and prepares accounts for the 16 months to 31 October 2024. The adjusted trading profit for this period is 38,560. Her only other...
-
You are a trainee chartered certified accountant and your manager has asked you for your help with regard to a taxpayer who has made trading losses. Sean has been in self-employment since 2011, but...
Study smarter with the SolutionInn App