Question: i. supply equation for corn: Q corn = 150 + 1.2P corn 0.8P soy + 0.05 Time Also assume that the average price of

i. supply equation for corn: Q_corn = 150 + 1.2P_corn – 0.8P_soy + 0.05_Time

Also assume that the average price of corn is $2.20 per bushel, the average output is 0.36 billion bushels, the average price of soybeans is $3.20 per bushel and Time is a linear trend from 0 to 20

ii. Demand equation for corn: Qcorn = 148 – 0.8P_corn + 0.25P_wheat – 0.5P_soy + 0.0002Income

where the average price of wheat is $4.00 per bushel and average income is $50,000

What is the demand faced by each farm in this perfectly competitive industry?
What is the demand elasticity for the farm above? Draw a sketch of the farm’s demand curve in (e).
What will the price of corn be if there is only one seller?
What will the quantity be if there is only one seller?

Step by Step Solution

★★★★★

3.30 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

What is the demand faled by ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention ...... 25% Appraisal ........ 25% Internal failure ...... 25% External failure ...... 25%...

Question 4: The average gasoline price in Chicago was $3.65 in recent weeks. Because of the supply shortage, it is a prediction there will be an increase in gasoline price. a) The correct hypotheses...

The file S02_50.xlsx contains the average price of gasoline in each of the 50 states. a. Compare the distributions of gasoline price data (one for each year) across states. Specifically, do you find...

At $2.13 per bushel, the annual supply for corn in the Midwest is 8.9 billion bushels and the annual demand is 6.5 billion bushels. When the price falls to $1.50 per bushel, the annual supply...

Find an equation for the ellipse with foci (1, 0) and ( 1, 1) and major axis of length 4.

1. A firms short-run supply curve shows the relationship between ________ on the horizontal axis and________ on the vertical axis. 2. To draw a firms short-run supply curve, you need its ________...

Multiple Choice Questions 1. Which of the following is false about perfect competition? a. Perfectly competitive firms sell homogeneous products. b. A perfectly competitive industry allows easy entry...

The following graph shows possible long-run market supply curves for a perfectly competitive industry. Determine which supply curve indicates a constant-cost industry and which an increasing-cost...

If f(x) exists and is nonzero for all x, then f (1) f (0).

Assume that a firm in a perfectly competitive industry has the following total cost schedule: OUTPUT (UNITS) TOTAL COST ($) 10 ............. $110 15 .............. 150 20 .............. 180 25...

Refers to the knowledge necessary in the preparation and execution of police plans, policies, and programs. - Military Intelligence - Police Intelligence - Departmental Intelligence - National...

14. If the potential at any point in two dimensional pla is given as V(x)=4x +4. Find the electric field an potential at (2, 0).

15. Four point charges of magnitude 2 C, -2, -3 and 6 C are kept at the four vertices of a square ABCD, with side 2 m. Find out the potential at the centre of the square.

16. At what point of the line joining the charges 3 nC and -2 nC, kept 15 cm apart, the potential is zero? Consider the potential at infinity to be zero. Hint: Accordin

17. Find out the work done in carrying a small charge of -2nC from a point (0, 0, 0.03 m) to (0, 0.04 m, 0) through (0,0.06m, 0.05 m). Consider the charge 8103 C is placed at origin. Hint: Potenti

18. Surface charge density of a thin planar sheet, = 106 C/m. Two equipotential surfaces, at the potential difference 10 V all drawn due to the given sheet. Calculate the distance of the...

The internal rate of return method is used by Carlisle Construction Co. in analyzing a capital expenditure proposal that involves an investment of $54,075 and annual net cash flows of $15,000 for...

A circular concrete shaft liner with Youngs modulus of 3.4 million psi, Poissons ratio of 0.25, unconfined compressive strength 3,500 psi and tensile strength 350 psi is loaded to the verge of...

Carpenter Inc. designs industrial tooling parts and makes the molds for those parts. The following activities take place when the company creates a new mold. Classify each cost as unit level (U),...

Financial professionals are at the forefront in adopting new technologies, many of which comprise the core of business strategies. Discuss how the increasing reliance of business on technology...

How does budgeting provide important information to managers and operating personnel?

The weights (in pounds) of a sample of five boxes being sent by UPS are 12, 6, 7, 3, and 10. a. Compute the range. b. Compute the standard deviation.

The IRS was interested in the number of individual tax forms prepared by small accounting firms. The IRS randomly sampled 50 public accounting firms with 10 or fewer employees in the DallasFort Worth...

SCCoast, an Internet provider in the Southeast, developed the following frequency distribution on the age of Internet users. Estimate the mean and the standard deviation. Age (years) Frequency 10 up...