Transcript
![Page 1: Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit](https://reader031.vdocuments.us/reader031/viewer/2022032704/56649d3f5503460f94a1846d/html5/thumbnails/1.jpg)
![Page 2: Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit](https://reader031.vdocuments.us/reader031/viewer/2022032704/56649d3f5503460f94a1846d/html5/thumbnails/2.jpg)
Given that this is zero economic profit, Bud should continue operating.
economic cost function, we can conclude that this is an economic profit.
![Page 3: Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit](https://reader031.vdocuments.us/reader031/viewer/2022032704/56649d3f5503460f94a1846d/html5/thumbnails/3.jpg)
P = 2.00
Q = 10,000
Q = 14,000
P = 16.80
![Page 4: Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit](https://reader031.vdocuments.us/reader031/viewer/2022032704/56649d3f5503460f94a1846d/html5/thumbnails/4.jpg)
Quantity demanded at the support price of $2.50 is:
QD = 1937.50707.5 bushels.
$1058.94 in consumer surplus.
![Page 5: Given that this is zero economic profit, Bud should continue operating. economic cost function, we can conclude that this is an economic profit](https://reader031.vdocuments.us/reader031/viewer/2022032704/56649d3f5503460f94a1846d/html5/thumbnails/5.jpg)
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 = MCT = MC1 = MC2