Question
In: Economics
The Perfect Rose Company is a flower industry member that grows and sells roses all year...
The Perfect Rose Company is a flower industry member that grows and sells roses all year round in a perfectly competitive market.
The firm charges a price of $100 per box. The firm’s total costs
are C(Q) = 50 + 12Q +
2Q2.
a. How much output should the firm produce in the short run?
____units
b. What price should the firm charge in the short run?
$ _____
c. What are the firm’s short-run profits?
$_____
d. What adjustments should be anticipated in the long run?
A) Entry will occur until economic profits shrink to zero.
B) No firms will enter or exit at these profits.
C) Exit will occur since these economic profits are too low.
Solutions
Rahul Sunny answered 8 months agoRelated Solutions
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The current market price for a box of rose is P = 50
e) what is the shutdown price?
f) Construct the Short-run supply curve. g) what is the firm’s
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Company began the 2018 accounting year on Jan. 1st with the
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Merchandise Inventory 22,000 Supplies 1,440 Prepaid Insurance 2,000
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Credit: Accumulated Depreciation-equipment 40,240 Accounts
Payable 7,000 Common Stock, $10 par 265,000 Retained Earnings
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