1. Suppose the market for almonds (which are sold by the box) is given by the demand and supply curves shown below in a perfectly competitive market. What is be the equilibrium price (Pe) and equilibrium quantity (Qe)? Pe = $ Qe = (millions of boxes) 60 40 20 S D Q (in millions of boxes) 1 2 3 4 5 2. The figure below shows the short-run cost curves of the typical almond farmer that produces and sells almonds in the market above. P 40 30 28 18 MC ATC AVC 3000 4000 5000 Q (boxes) a. Based on your answer for Pe and Qe in the market, what quantity will each profit-maximizing almond farmer be producing and selling? Q = b. Given how much each individual almond farmer is producing and how many almonds are being sold in the market, calculate how many almond farmers there are in the market.
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Based on the equilibrium price (Pe) and equilibrium quantity (Qc) in the market, each profit-maximizing almond farmer will be producing and selling the quantity Qc. So, each almond farmer will be producing and selling Qc million boxes of almonds. b. To calculate Show more…
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