Quantity of Apples (bushels) VC 0 $0 1 $40 2 $70 3 $80 4 $130 5 $190 6 $260 7 $340 8 $430 Reference: Ref 12-12 Table: Lilly's Apple Orchard (Table: Lilly's Apple Orchard) Use Table: Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard; the orchard's variable costs are given in the table. Her orchard has fixed costs of $30. If the price of a bushel of apples is $85, we would expect total industry output to _____ and Lilly's output to _____ in the long run. Select one: a. rise; fall b. fall; fall c. rise; rise d. fall; rise

Quantity of Apples (bushels) VC 0 $0 1 $40 2 $70 3 $80 4 $130 5 $190 6 $260 7 $340 8 $430 Reference: Ref 12-12 Table: Lilly's Apple Orchard (Table: Lilly's Apple Orchard) Use Table: Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard; the orchard's variable costs are given in the table. Her orchard has fixed costs of $30. If the price of a bushel of apples is $85, we would expect total industry output to _ and Lilly's output to _ in the long run. Select one: a. rise; fall b. fall; fall c. rise; rise d. fall; rise

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Transaction Costs, Asymmetric Information, And Behavioral Economics

Section: Chapter Questions

Problem 1.2P

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Quantity of Apples (bushels)	VC
0	$0
1	$40
2	$70
3	$80
4	$130
5	$190
6	$260
7	$340
8	$430

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