Business, 27.12.2019 00:31 musa79

Bestmilk, a typical profit-maximizing dairy farm, is operating in a constant-cost, perfectly competitive industry that is long-run equilibrium.
(a) draw correctly labeled side-by-side graphs for the dairy market and for bestmilk and show each of the following.
(i) price and output for the industry
(ii) price and output for bestmilk
(b) assume that milk is a normal good and that consumer income falls. assume that bestmilk continues to produce. on your graphs in part (a), show the effect of the decrease in income on

Answers: 3

Show answers

Answers

Answer from: Rakeem458

a. (i). See the labelled diagram on item (A) on the attached

(ii). See the labelled diagram on item (A) on the attached

b. (i). See the labelled diagram on item (B) on the attached

(ii). See the labelled diagram on item (B) on the attached

(iii) See the labelled diagram on item (B) on the attached

c. For Bestmilk to continue to produce in the short run, either Price (P) is equal to or less than average variable cost (AVC) that is, (P>=AVC) or price (P) is greater than average total cost (ATC), that is (P>ATC)

d. (i). The initial long run equilibrium will be maintained

(ii). The original profit maximizing output will be maintained.

(iii) The number of firms will reduce in response to the elimination of the super-normal profit that initially attracted to the industry in the short run.

Explanation:

b. (i) A decrease in the consumer income will force price in the industry to drop from P1 to P2 and output will naturally follow the downward trend from Q1 to Q2.

(ii) Both the profit maximizing price and quantity will fall to a new level for Bestmilk.

(iii) A decrease in the consumer income will make Bestmilk to operate at a loss as shown in the shaded area of the attached file.

c. For Bestmilk to continue to produce in the short run, either the price (P) charged for the product should be greater than or equal to the variable cost per unit what this means is that P>= AVC or the price (P) charged for the product is greater than average total cost. i.e. P>ATC

d. (i). The initial long run equilibrium will be maintained

(ii). The original profit maximizing output will be maintained.

(iii) The number of firms will reduce in response to the elimination of the super-normal profit that initially attracted to the industry in the short run.

Answer from: Quest

Let me socratic give a few mins

Answer from: Quest

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this

Another question on Business

Business, 22.06.2019 06:40

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

Answers: 1

Answer

Business, 22.06.2019 07:20

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Answers: 1

Answer

Business, 22.06.2019 19:30

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery

Answers: 3

Answer

Business, 23.06.2019 00:40

Skathy lee berggren, a professor of oral communication at cornell university, indicates “a lot of my students really [only] scratch the surface with the type of research they’re doing.” according to andy guess, at inside higher ed, “just because students walk in the door as ‘digital natives’, doesn’t mean they’re equipped to handle the heavy lifting of digital databases and proprietary search engines that comprise the bulk of modern, online research techniques.” students erroneously think a google search is research. as you read through the reasons that should stimulate your interest in studying research methods or evaluate the nine factors that guarantee good research, what actions do you propose to narrow the gap between students’ research competence and what’s required of a modern college graduate about to become a manage

Answers: 1

Answer

You know the right answer?

Bestmilk, a typical profit-maximizing dairy farm, is operating in a constant-cost, perfectly competi...

Questions