Business, 24.06.2020 01:01 cowerdwhisper23

Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of producing almonds in these locations is given by MC = 0.02Q, where Q is the number of crates produced in a growing season. Three hundred almond growers operate in drier areas where costly irrigation is required. The marginal cost of growing almonds in these locations is given by MC = 0.04Q. A. What is the individual supply curve for each type of almond grower? (Hint: remember that supply is the relationship between the quantity supplied and price). b. Using the individual supply curves from part a), derive the market supply curve. c) If the market demand for almonds is Qd = 105,000 - 2,500P, what will the equilibrium price of almonds be? The equilibrium quantity? d) How many almonds will each type of almond grower produce at that price?
e) Verify that the total production of all almond growers equals the equilibrium quantity you found in part (c).

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Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of pro...

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