The two figures below show (on the left) the industry supply and demand for wheat and(on the right) the marginal cost (MC), average total cost (ATC), and average variable cost(AVC) for a single firm operating in the wheat market.a. The industryBPrice per bushel ($)SSupposewhich of the follow is true?D₁•D3a.None of these is correctb. The firm will exit the industryc. The firm will shut down *Od. New firms will enter the industryb. A representative firmIncorrectMC10 12 13 15Bushels of wheatBushels of wheatthe demand for wheat is D3 as depicted in the figure above. In the long run,ATCAVC

The firms will exit the industry when they face losses i.e. the price is below the average total…

The two figures below show (on the left) the industry supply and demand for wheat and (on the right) the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) for a single firm operating in the wheat market. a. The industry Price per bushel (S) S •D₁ Suppose which of the follow is true? a. None of these is correct b. c. The firm will shut down d. New firms will enter the industry The firm will exit the industry 0 Incorrect b. A representative firm Bushels of wheat the demand for wheat is D3 as depicted in the figure above. In the long run, MC 10 12 13 15 Bushels of wheat ATC AVC

The two figures below show (on the left) the industry supply and demand for wheat and (on the right) the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) for a single firm operating in the wheat market. a. The industry Price per bushel (S) S •D₁ Suppose which of the follow is true? a. None of these is correct b. c. The firm will shut down d. New firms will enter the industry The firm will exit the industry 0 Incorrect b. A representative firm Bushels of wheat the demand for wheat is D3 as depicted in the figure above. In the long run, MC 10 12 13 15 Bushels of wheat ATC AVC

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter22: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 9CQ

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