Consider the perfectly competitive market for com The market equilibrium price is $20. Suppose the farmer maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40 What is the marginal cost of production at 1000 bushels? a $40,000 b. $40 c Less than $20 x d. $20

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
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
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 10CQ
icon
Related questions
Question
Consider the perfectly competitive market for corn The market equilibrium price is $20. Suppose the farmer
maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40. What is the
marginal cost of production at 1000 bushels?
a $40,000
b.
с
d.
$40
Less than $20 x
$20
I
Transcribed Image Text:Consider the perfectly competitive market for corn The market equilibrium price is $20. Suppose the farmer maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40. What is the marginal cost of production at 1000 bushels? a $40,000 b. с d. $40 Less than $20 x $20 I
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Demand Schedule
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage