Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? Explain

Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the producers in the corn production industry were price takers, what would happen to the following? a. the price of corn b. the profitability of corn farmers who quickly adopt the new technology c. the profitability of corn farmers who are slow to adopt the new technology d. the price of soybeans, a substitute product for corn