Business, 24.11.2020 19:20 Valentinavr

Assume that apples are produced in a perfectly competitive market. Grandeâs Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. a. Draw a correctly labeled graph showing Grandeâs demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QG.
b. Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grandeâs economic profit in the short run? Explain.
c. What will happen to Grandeâs economic profit in the long run? Explain.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 08:30, labrandonanderson00

What is the equity method balance in the investment in lindman account at the end of 2018?

Answers: 2

continue

Business, 22.06.2019 14:30, SophieCasey

The state in which the manufacturing company you work for is located regulates the presence of a particular substance in the environment to concentrations ≤ x. recently-released, reliable research endorsed by the responsible federal agency conclusively demonstrates that the substance poses no risks at concentrations up to 5x. your company has asked you to consider designing a new process with a waste discharge stream containing up to 2x of the substance. based on the stated conditions, describe this possible.

Answers: 2

continue

Business, 23.06.2019 00:30, humpty21

One of the growers is excited by this advancement because now he can sell more crops, which he believes will increase revenue in this market. as an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. using the midpoint method, the price elasticity of demand for soybeans between the prices of $5 and $4 per bushel is , which means demand is between these two points. therefore, you would tell the grower that his claim is because total revenue will as a result of the technological advancement.

Answers: 1

continue

Business, 23.06.2019 03:10, Danay4600

What two categories do strategic choices fall within? a. generic business strategies and cost leadership strategies b. business-level strategies and corporate-level strategies c. cost leadership strategies and corporate-level strategies d. diversification strategies and leadership strategies e. pricing strategies and cost-leadership strategies

Answers: 1

continue

You know the right answer?

Assume that apples are produced in a perfectly competitive market. Grandeâs Orchard is a typical fir...