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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

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

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.1P
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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
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