Answered: Price, cost of bushel $30 26 MC 22 18…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Figure: Cost Curves for Corn Producers

Reference: Ref 12-3

(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce _____ of corn and earn an economic _____ equal to _____.

3 bushels; profit; loss, -$15

2 bushels; profit; $0

4 bushels; profit; just less than $80 per bushel

2 bushels; loss; just more than $80 per bushel

Price,
cost of
bushel
$30
26
MC
22
18
ATC
AVC
14
10
2
2 3
4
Quantity of corn (bushels)
Reference: Ref 12-3

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