Advanced Placement (AP), 20.04.2021 01:00 nadikadiaz1
4. Bobby's Farm grows blueberries and operates in a constant-cost, perfectly competitive
blueberry industry. Bobby's Farm is currently earning an economic profit.
a. Draw correctly labeled side-by-side graphs for the blueberry market and Bobby's
Farm, and show each of the following:
i. Market output and price, labeled as Qm and PM, respectively
ii. Bobby's Farm output and price, labeled as QF and Ps, respectively
b. Shade in the area of economic profit completely.
c. Explain what will happen to the market equilibrium price and quantity of
blueberries in the long run given current conditions.
d. Draw what will happen in the long-run on your graphs. Be sure to label:
i. New market output and price, labeled as Qx and Px, respectively
ii. New supply curve, labeled as S,
Answers: 1
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4. Bobby's Farm grows blueberries and operates in a constant-cost, perfectly competitive
blueberry...
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