ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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the run up in grain prices of the past 6 months has now caused an increase in the
- show shifts in any of the cost
curves , reflecting the higher cost of land (keeping in mind that this higher cost is independent of how much or how little corn is actually produced) and labeling the changed cost curves with a subscript 1. On the graph with $ on the vertical axis and individual firm output q on the horizontal axis, draw the P1 . What is the new profit maximizing output q1 for this typical firm? - Graphically depict the size of
profits or losses (negative profits) at the new price P1. Is the firm making positive or negative profits?
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