Chat with AI
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 3
The study of long-run producer surplus is one of the most important ways in which microeconomics ties together effects in various markets. Explain the following scenarios:
1. If the peanut-harvesting industry is a price taker for all of the inputs it hires, there will be no long-run producer surplus in this industry.
2. If the only "scarce" resource in the potato-harvesting industry is land for growing potatoes, total long-run producer surplus in this industry will be measured by total economic rents earned by potato-land owners. How do these rents enter into the pricing of potatoes?
1. If the peanut-harvesting industry is a price taker for all of the inputs it hires, there will be no long-run producer surplus in this industry.
2. If the only "scarce" resource in the potato-harvesting industry is land for growing potatoes, total long-run producer surplus in this industry will be measured by total economic rents earned by potato-land owners. How do these rents enter into the pricing of potatoes?
Explanation
Verified
Verified
1)The long-run supply curve will be perf...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
