Assignment – 1 Subject : Business Economics2. Explain how equilibrium of the firm is achieved. Also, explain (along with examples)how profit maximizing output is determined in short run and long run for:a. Perfect Competitive marketb. Monopoly marketc. Monopolistic marketd. Oligopoly market…………………..The long-run equilibrium of a perfectly competitive industry generates six specific equilibrium conditions, including: (1) economic efficiency (P = MC), (2) profit maximization (MR = MC), (3) perfect competition (MR = AR = P), (4) breakeven output (P = AR = ATC), (5) minimum production cost (MC = ATC), and (6) minimum efficient scale (MC = ATC = LRAC = LRMC).
In the long-run equilibrium of a perfectly competitive industry, the market price, the number of firms in the industry, and each firms scale of production adjust such that each firm produces at the lowest point on its long-run average cost curve–which is its minimum efficient scale. At this production scale the following multivariable equilibrium condition is achieved:
P = AR = MR = MC = LRMC = ATC = LRACThis overall equilibrium condition can be divided into the six specific conditions: (1) economic efficiency (P = MC), (2) profit maximization (MR = MC), (3) perfect competition (MR = AR = P), (4) breakeven output (P = AR = ATC), (5) minimum production cost (MC = ATC), and (6) minimum efficient scale (MC = ATC = LRAC = LRMC).
For a closer look at these six conditions, consider the hypothetical perfectly competitive Shady Valley zucchini growing industry. While zucchini growing in the real world does not match all of the conditions of perfect competition, it comes close enough to serve as a illustration for this analysis. The hypothetical Shady Valley zucchini growing industry contains a large number of relatively small firms (gadzillions of zucchini growers, each producing a handful of zucchinis each day), identical products (one zucchini is the same as every other zucchini), freedom of entry and exit (anyone can grow zucchinis with no up front cost or legal restriction), and perfect knowledge of prices and technology (ever grower knows how to grow zucchinis and they know all relevant prices). Not absolutely perfect, but close.
The Problem: A Perfect Business
Zucchinis are the most widely cultivated foodstuff in existence. So much has been said about the health and welfare of zucchini growing, but how often have the manufacturers of zucchinis offered such information to other people? Why haven’t we heard from other growers in the past few years? The answer is that these businesses have little to no transparency—there are too many, and their operations are often poorly organized, or simply failed at, especially when it comes to providing information in such an open setting that does not permit a legitimate and reliable source for information.
The problem for growers can be seen in how they operate and share their information: As with most things out there, it is best to be cautious. As it turns out, this is a problem that growers and vendors might be willing to face, but it can quickly become a source and source of frustration to the other person’s business. It doesn’t have to be very difficult, as growers take a lot of time and resources to learn how to run a business that will provide and receive information but don’t want to sacrifice any of its integrity. If the public, particularly those in the United States and around the world have an easy time getting to know growers about what they grow, this makes the situation for others pretty much nonexistent.
The Solution: Information Sharing
It all starts with the fact that one company is doing this. And this is something growers have to keep actively active about, and to spread good information to as many others as possible.
The basic idea to share in the knowledge is for them to have a public Facebook page that they send out as updates about their business, and some form of public email address or address to tell others that they are selling their zucchini. You can then use this as a way for others to spread good information about your business or other businesses. If those things are not on the menu for you, they can use such a service like e-Crop to post links to other sites, such as this . This will usually be provided by a reputable firm such as this , unless it is the result of some sort of legal or illegal activity that has not been directly disclosed. The e-Crop website is also what the vendors use to build the website. You want to keep your name on and you want vendors to know what they are selling.
The basic idea to share in the knowledge is for them to have a public Facebook page that they send out as updates about their business, and some form of public email address or address to tell others that they are selling their zucchini. You can then use this as a way for others to spread good information about your business or other businesses. If those things are not on the menu for you, they can use such a service like this . This will usually be provided by a reputable firm such as this or from my posts this and this .
The following is a list of all the sites that the vendors use to be selling their zucchini of course. This website is also what the vendors use to build the website. You want to keep your name on and you want vendors to know what they are selling.
The following is a list of all the sites that the vendors use to be selling their zucchini of course. This website is also what the vendors use to build the website. You want to keep your name on and you want vendors to know what they are selling.
http://www.strawberrystrawberry.co.uk/zucchini_canned_pasta.htm
For those who use them as part of their business, here is just a few helpful links:
http://www.strawberrystrawberry.co.uk/zucchini_canned_pasta.htm