Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. 10 MC 9- ATC Suppose the market for wheat is perfectly competitive. If the market price is $8 per bushel, then to maximize profits, farmer Smith should produce thousand bushels of wheat. (Enter a numeric response using an integer.) 8- Price 7- 6- 5- 4- 1- 50 60 70 90 100 10 20 Quantity of wheat (bushels per month in 1000s) 0. 30 40 80 Price and cost (dollars per bushel)

Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. 10 MC 9- ATC Suppose the market for wheat is perfectly competitive. If the market price is $8 per bushel, then to maximize profits, farmer Smith should produce thousand bushels of wheat. (Enter a numeric response using an integer.) 8- Price 7- 6- 5- 4- 1- 50 60 70 90 100 10 20 Quantity of wheat (bushels per month in 1000s) 0. 30 40 80 Price and cost (dollars per bushel)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section9.2: Perfect Competition In The Short Run

Problem 3ST

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