Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit.

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Presentation transcript:

Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit.

P = 2.00 Q = 10,000 Q = 14,000 P = 16.80

Quantity demanded at the support price of $2.50 is: Q D = bushels. $ in consumer surplus.

Workers bear a greater burden of both the income and social security tax. NEED 3 ANSWERS TO GET FULL CREDIT - Perfect information, particularly by buyers - Price takers - Homogeneous product - No barriers to entry - Large number of sellers MR = MC T = MC 1 = MC 2