Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Transcribed Image Text:Concept: Calculate Profit
Farmer Jones grows sugar. The average total cost and marginal cost of growing
sugar for an individual farmer are illustrated in the graph to the right. Assume the
rharket for sugar is perfectly competitive.
According to the graph, farmer Jones will earn profit (positive economic profit as
opposed to losses) at any market price above $10 per bushel. (Enter a numeric
response using an integer.)
Assume that the market price specifically is $24 per bushel. If farmer Jones
produces the profit maximizing quantity, what will be her profit? $
To more easily identify the price and quantity, click on the graph to the right, and
then adjust the slider to change the price and quantity. Each increment will
increase the price by $2.
Enter your answer in the answer box and then click Check Answer.
40-
36-
32-
MC
28-
24-
20-
Price and cost (dollars per bushel)
12-
ATC
46
20 30 40 50 60 70 80 90 100
Quantity of Sugar (bushels per month)
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