Unit 3: Production, Cost and Perfect Competition

BrightBulb is a typical profit-maximizing firm in a perfectly competitive light bulb market. The market is currently in short-run equilibrium. The market price is [math])

SunFlour Bakery is a typical profit-maximizing firm that produces and sells bread in a constant-cost, perfectly competitive market that is currently in long-run equilibrium.

ClearWater Filters is a profit-maximizing firm in a perfectly competitive market for water filters. The table below shows the firm's cost and revenue data.

HarvestFarm hires workers to pick apples. The table below shows the farm's short-run production data. Each worker is paid [math]200 per day.

WheatField Farm operates in a perfectly competitive wheat market that is in long-run equilibrium at a price of [math]2 per bushel paid to producers.

The market for soybeans is perfectly competitive and in equilibrium at a price of [math]12 per bushel. At this price, quantity demanded is 350,000 and quantity supplied is 700,000 bushels.