Register
A representative firm producing watermelons is earning a normal profit at a price of 535 per hundred pounds. Draw asupply and demand diagram showing equilibrium at this. price. Assuming that the industry
228k views
5 votes
A representative firm producing watermelons is earning a normal profit at a price of 535 per hundred pounds. Draw asupply and demand diagram showing equilibrium at this. price. Assuming that the industry is a constant-cost industry, usethe diagram to show the long-term adjustment of the industry as demand falls over time. Explain the adjustmentmechanism.

User Anyah
by
3.6k points

1 Answer

3 votes

Answer:

All sketches and explanations are attached.

Step-by-step explanation:

A representative firm producing watermelons is earning a normal profit at a price of 535 per hundred pounds. Draw asupply and demand diagram showing equilibrium at this. price. Assuming that the industry is a constant-cost industry, usethe diagram to show the long-term adjustment of the industry as demand falls over time. Explain the adjustmentmechanism.

All sketches and explanations are attached.

A representative firm producing watermelons is earning a normal profit at a price-example-1
A representative firm producing watermelons is earning a normal profit at a price-example-2
A representative firm producing watermelons is earning a normal profit at a price-example-3
A representative firm producing watermelons is earning a normal profit at a price-example-4
User Joest
by
3.5k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.4m questions

4.3m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match
Link Copied!