Business, 22.02.2021 19:40 ethanseiter
Great Aloha a typical profit-maximizing goat farm (specializing in goat cheese) is operating in a Show more Great Aloha a typical profit-maximizing goat farm (specializing in goat cheese) is operating in a constant cost perfectly competitive industry that is in long-run equilibrium.
a. Draw correctly labeled side-by-side graphs for the dairy market and for Great Aloha and show each of the following. Price and quantity for the industry Price and output for Great Aloha Assume that goat cheese is a normal good and that consumer income falls. Assume that Great Aloha continues to produce.
b. On you graphs in part (a) show the effect of the decrease in income on each of the following in the short run. Price and output for the industry Price and output for Great Aloha Area of loss or profit for Great Aloha Following the decrease in consumer income what must be true for Great Aloha to continue to produce in the short-run? Assume that the industry adjusts to a new long-run equilibrium. Compare the following between the initial and the new long-run equilibrium. Price in the industry Output of a typical firm The number of firms in the goat cheese industry
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Great Aloha a typical profit-maximizing goat farm (specializing in goat cheese) is operating in a Sh...
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