# 5959

Name___________________________
Pledge (sign)________________________
“I did not copy another student’s answers”
Economics 4020 – Dr. Rupp
Homework #3– Perfect Competition
Due: Sept 21st
Discussion question #1 – Draw two graphs side-by-side that show the market equilibrium price for soy beans as \$3
per pound. The second graph is for Sally the soy bean farmer whose profit maximizing output is 80 pounds of
soybeans. Show on your graph Sally making a profit of \$140 at the market price of \$3. Label all curves you draw and
clearly indicate the profit region.
P U.S. Soy bean Market P Sally “the soy bean farmer”
__________________________________________Q _______________________________________Q
Discussion question #2
? Is the above scenario a short-run or long-run equilibrium?
? If it is not a long-run equilibrium, tell me how you know this?
? What do you expect to happen in the long-run?
? What effect will these long run changes have on either the supply or demand curve in the U.S. Soy bean
market?
? What effect will these long run soy bean market changes have on Sally the soy bean farmer?
? What happens in the long run to soy bean prices?
Name___________________________
? What happens in the long run to the quantity of soy beans produced in the market?
? What happens in the long run to the quantity of soy beans produced by Sally?
Label the initial equilibrium points “A” in both graphs below…label the new long-run equilibrium points “B” on
P U.S. Soy bean Market P Sally “the soy bean farmer”
__________________________________________Q _______________________________________Q Document Preview:

Name___________________________ Pledge (sign)________________________ “I did not copy another student’s answers” Economics 4020 – Dr. Rupp Homework #3– Perfect Competition stDue: Sept 21 Discussion question #1 – Draw two graphs side-by-side that show the market equilibrium price for soy beans as \$3 per pound. The second graph is for Sally the soy bean farmer whose profit maximizing output is 80 pounds of soybeans. Show on your graph Sally making a profit of \$140 at the market price of \$3. Label all curves you draw and clearly indicate the profit region. P U.S. Soy bean Market P Sally “the soy bean farmer” __________________________________________Q _______________________________________Q Discussion question #2 ? Is the above scenario a short-run or long-run equilibrium? ? If it is not a long-run equilibrium, tell me how you know this? ? What do you expect to happen in the long-run? ? What effect will these long run changes have on either the supply or demand curve in the U.S. Soy bean market? ? What effect will these long run soy bean market changes have on Sally the soy bean farmer? ? What happens in the long run to soy bean prices?Name___________________________ ? What happens in the long run to the quantity of soy beans produced in the market? ? What happens in the long run to the quantity of soy beans produced by Sally? Label the initial equilibrium points “A” in both graphs below…label the new long-run equilibrium points “B” on your graph below. P U.S. Soy bean Market P Sally “the soy bean farmer” __________________________________________Q _______________________________________Q

Attachments:

### Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

hw3.pdf