Managerial Economics

HoneyBee Farms, a medium-size producer of honey, operates in a market that fits the competitive market definition relatively well. However, honey farmers are assisted by support prices above the price that would prevail in the absence of controls. The owner of HoneyBee Farms, as well as some other honey producers, complain that they can’t make a profit even with these support prices. Explain why. Explain why even higher support prices would not help honey farmers in the long run.

  1. 👍 0
  2. 👎 0
  3. 👁 570

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    If one honeybee makes 1/12 teaspoon of honey during its lifetime. how many honey bees are needed to make 1/2 teaspoon of honey? 1/12*2/1= 2/12=1/6 ???

  2. microeconomics

    1. Market demand is given as QD = 250 – 0.5P. Market supply is given as QS = 2P. In a perfectly competitive equilibrium, what will be the value of consumer surplus? a.$10 000 b.$20 000 c.$40 000 d.$80 000 2. Market demand is

  3. Microeconomics

    Answer the following questions based on the graph that represents J.R.'s demand for ribs per week of ribs at Judy's rib shack. a. At the equilibrium price, how many ribs would J.R. be willing to purchase? b. How much is J.R.

  4. Economics

    In a perfect competitive market setting,which of the following would be a true statement? a)market price automatically sets itself exactly at equilibrium b)market price rarely trends toward the equilibrium value c)wage rates trend

  1. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its

  2. Microeconomics

    Monopolistic Competition A monopolistically competitive market could be considered inefficient because: A. Marginal revenue exceeds average revenue B. Price exceeds marginal cost C. Efficient scale is realized in the long run, but

  3. MicroEcon

    The market for apple pies in the city is competitive and has the following demand schedule: Price Quantity Demanded $1 1,200 2 1,100 3 1,000 4 900 5 800 6 700 etc... 13 0 Each producer in the market has fixed costs of $9 and the

  4. Mircoeconomics

    A significant difference between monopoly and perfect competition is that: A. free entry and exit is possible in a monopolized industry but impossible in a competitive industry. B. competitive firms control market supply but

  1. economics

    A cloth producing firm in a perfectly competitive market has the following short-run total cost function: TC = 6000 + 400Q – 20Q2 + Q3. If the prevailing market price is birr 250 per unit of cloth, A. Should the firm produce at

  2. Math

    A booth at the farmer’s market has fresh goat cheese in three sizes of containers. The big container is 30 ounces and costs $9.00. The medium container is 15 ounces and costs $4.95. The small container is 8 ounces and costs

  3. U.S.History

    What was a negative impact of "bonanza" farms? a. output declined b. farms got smaller c. farms became disorganized d. oversupply led to lower prices i got D according to my book heres what my book says: The farms' massive output

  4. maths

    Allen Young has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months, however, Allen has become very

You can view more similar questions or ask a new question.