b. The market price of corn is $2.20 per cob. In the short run, how much corn should Cathy produce each day to maximize profits? cobs per day c. What are Cathy's profits/losses per day if she produces the profit-maximizing quantity of corn in the short run (losses are expressed as a negative number)? $ d. In the short run, assuming nothing else changes, Cathy should: shut down, because the market price is above the AVC. produce the same quantity of com per day. ● produce a lower quantity of corn per day. produce a greater quantity of com per day. e. If the short-run price of corn falls to $1.30 per cob, Cathy should: produce the same quantity of com per day. shut down, because the market price is below the AVC. produce a greater quantity of com per day. O produce a lower quantity of corn per day.
b. The market price of corn is $2.20 per cob. In the short run, how much corn should Cathy produce each day to maximize profits? cobs per day c. What are Cathy's profits/losses per day if she produces the profit-maximizing quantity of corn in the short run (losses are expressed as a negative number)? $ d. In the short run, assuming nothing else changes, Cathy should: shut down, because the market price is above the AVC. produce the same quantity of com per day. ● produce a lower quantity of corn per day. produce a greater quantity of com per day. e. If the short-run price of corn falls to $1.30 per cob, Cathy should: produce the same quantity of com per day. shut down, because the market price is below the AVC. produce a greater quantity of com per day. O produce a lower quantity of corn per day.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 3P
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