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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
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

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

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

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

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


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