Question

Assume that apples are produced in a perfectly competitive market. Grande’s 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 Grande’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QGQG .

Answer 1

Answer:

Question 1: Assume that apples are produced in a perfectly competitive market. Columbia's

Orchard is a typical firm that grows and sells apples. Currently, Columbia earns zero economic

profit, and the market price of apples is $10 per basket

a) Draw a correctly labeled graph showing Columbia's demand curve, average total cost

curve, and marginal cost curve, and show the profit-maximizing quantity, labeled Qc.

Answer:

b) Suppose an increase in the popularity of apple, the demand for apple increases. How will

the increase in the demand for apples affect Columbia's economic profit in the short run?

Explain

Answer:

c) What will happen to Columbia's economic profit in the long run.

Explanation:

HOPE IT HELPED YOU

PLEASE MARK THE ANSWER AS BRAINLIST