ECONOMICS DISCUSSION
DB Unit 3 Economics
1. Prompt:Read“YOU’RE THE ECONOMIST: Recession Takes a Bite Out of Gator Profits” in Chapter 8. Assuming gator farming is perfectly competitive, explain the long-run competitive equilibrium condition for the typical gator farmer and the industry as a whole.
2. Read “YOU’RE THE ECONOMIST: The Standard Oil
” in Chapter 9. If Standard Oil was a natural monopoly, what would happen to the average cost of producing gasoline after the company was split up? Explain using an LRAC curve.
o Requirements: 250 words minimum for each question
Requirements: Discussion | 1 pages, Double spaced
Answer preview
Part one- Perfect Competition
Companies offering similar products in the same industry face intense competition. Notably, businesses try to charge more for the products; however, most experience a backlash from the clients since they opt to get services from another seller at a lower cost (Tucker, 2019). These competitive conditions…
(550 words)
