**All exams will require 2 current events pertaining to one of the topics covered in the chapters on...

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**All exams will require 2 current events pertaining to one of the topics covered in the chapters on the exam. The 2 current events must be typed, double spaced, spell checked, written in the student’s own words along with a reference for the source of the information. It must be at least 2 pages and discuss at least 2 current events that are no more than a week old in relation to the exam due date. The 2 current events are mandatory and accounts for 14 percent of grade. You must summarize the current events in your own words and explain what economic concept it pertains to and why? This assignment will be checked for plagiarism so make sure to put the information in your own words and to reference the sources of your information in the document. Use APA or MLA format for the written assignment. Put both current events in one document and submit them as one document. You need to write at least one page per event. This is not optional. This is due on the same day as the exam it pertains to.PowerPoint Presentation PRINCIPLES OF  ECONOMICS 2e Chapter 8 Perfect Competition PowerPoint Image Slideshow COLLEGE PHYSICS Chapter # Chapter Title PowerPoint Image Slideshow CH. 8 OUTLINE 8.1: Perfect Competition and Why It Matters 8.2: How Perfectly Competitive Firms Make Output Decisions 8.3: Entry and Exit Decisions in the Long Run 8.4: Efficiency in Perfectly Competitive Markets This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Competition in Farming Depending upon the competition and prices offered, a wheat farmer may choose to grow a different crop.  (Credit: modification of work by Daniel X. O'Neil/Flickr Creative Commons) This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. 8.1 Perfect Competition and  Why It Matters Market structure - the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold. Perfect competition - each firm faces many competitors that sell identical products. 4 criteria:  many firms produce identical products, many buyers and many sellers are available, sellers and buyers have all relevant information to make rational decisions, firms can enter and leave the market without any restrictions. Price taker - a firm in a perfectly competitive market that must take the prevailing market price as given. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. 8.2 How Perfectly Competitive Firms  Make Output Decisions A perfectly competitive firm has only one major decision to make -  what quantity to produce? A perfectly competitive firm must accept the price for its output as determined by the product’s market demand and supply. The maximum profit will occur at the quantity where the difference between total revenue and total cost is largest. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Total Cost and Total Revenue at a  Raspberry Farm Total revenue for a perfectly competitive firm is a straight line sloping up; the slope is equal to the price of the good.  Total cost also slopes up, but with some curvature.  At higher levels of output, total cost begins to slope upward more steeply because of diminishing marginal returns.  The maximum profit will occur at the quantity where the difference between total revenue and total cost is largest. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Comparing Marginal Revenue and  Marginal Costs Marginal revenue (MR) - the additional revenue gained from selling one more unit.  change in total revenue change in quantity Marginal cost (MC) - the cost per additional unit sold. change in total cost change in quantity The profit-maximizing choice for a perfectly competitive firm will occur at the level of output where MR=MC. MR = MC = This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Marginal Revenues and Marginal Costs at the Raspberry Farm: Raspberry Market The equilibrium price of raspberries is determined through the interaction of market supply and market demand at $4.00. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Marginal Revenues and Marginal Costs  at the Raspberry Farm: Individual Farmer For a perfectly competitive firm, the marginal revenue curve is a horizontal line because it’s equal to the price of the good ($4), determined by the market. The marginal cost curve is sometimes initially downward-sloping, if there is a region of increasing marginal returns at low levels of output.  It is eventually upward-sloping at higher levels of output as diminishing marginal returns kick in. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Profits and Losses with the Average Cost Curve Does maximizing profit (producing where MR = MC) imply an actual economic profit?  The answer depends on the relationship between price and average total cost, which is the average profit or profit margin. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Price and Average Cost at the Raspberry  Farm In (a), price intersects MC above the AC curve.  Since price > AC, the firm is making a profit.   In (b), price intersects MC at the minimum point of the AC curve.  Since price = AC, the firm is breaking even.  In (c), price intersects MC below the AC curve.  Since price  minimum AVC, then the firm stays in business This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. The Shutdown Point for the  Raspberry Farm In (a), the farm produces at a level of 65. It is making losses, but   price > AVC, so it continues to operate.  In (b), the farm produces at a level of 60. This price  break even point, then price > AC and the firm is earning profits.  If the price = break even point, then the firm is making zero profits.  Break even point - level of output where the MC intersects the AC curve at the minimum point of AC; if the price is at this point, the firm is earning zero economic profits. This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted.  Any images attributed to other sources are similarly available for reproduction, but must be attributed to their sources. Short-Run Outcomes for Perfectly  Competitive Firms, Continued  If shutdown point

Preeta · Accepted Answer

Competition among agricultural firms in US:
Perfect competition exists among agricultural firms in US. A recent article from CNBC explored the current condition of the farmers of US (Newburger, 2020). The agricultural products are all homogenous in nature and so same price has to be charged for those by all the sellers otherwise the customers will go for the products with lowest price. 
The farmers of US have been facing some problems in the recent past. For a few years they were all caught up between the trade war going on between China and America, then flood destroyed most of the harvest and after that came the global pandemic, corona virus in the last month. The price of the crops and animal livestock has fallen drastically along with high shortage in the labour.
Farmers have several trade groups which taken the pricing and other such decisions. The trade groups are requesting the Government to take proper administrative measures. At the rise of the pandemic, Government has stopped immigration from Mexico which used to the source of cheap labour for most of the agricultural firms.

**All exams will require 2 current events pertaining to one of the topics covered in the chapters on the exam. The 2 current events must be typed, double spaced, spell checked, written in the...

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