In: Economics
Perfect Rose sells rose is one of the 1000 firms in the rose market in a perfect Competitive market. The firm has a total cost as TC=800 + 4q + 2q2
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 producer surplus at the profit maximum point and the market producer surplus?
The perfect Rose long-run AC is given below answer the following questions. • AC = 200 – 5q + 0.1q2
a) What is the output? (Produce at point of q where Min AC)
b) what is the market price, MC, and AC?
c) What is the producer surplus?
d) What is the economic profit?