Given that this is zero economic profit, Bud should continue operating.

economic cost function, we can conclude that this is an economic profit.

P = 2.00

Q = 10,000

Q = 14,000

P = 16.80

Quantity demanded at the support price of $2.50 is:

QD = 1937.50707.5 bushels.

$1058.94 in consumer surplus.

Workers bear a greater burden of both the income and social security tax.

NEED 3 ANSWERS TO GET FULL CREDIT- Perfect information, particularly by buyers- Price takers- Homogeneous product- No barriers to entry- Large number of sellers

MR = MCT = MC1 = MC2