Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) If at this price an individual bean farmer produces 70 boxes of beans per week, she will have economic profits of $ To break even in the long run, bean farmers must produce the quantity that occurs at lowest fixed cost at lowest marginal cost at lowest average cost Price and cost (dollars per box) 10 6- 5- 4- 3- 2- 1 ATC 0 10 20 30 40 50 60 70 80 90 100 Quantity of beans (boxes per week)

Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) If at this price an individual bean farmer produces 70 boxes of beans per week, she will have economic profits of $ To break even in the long run, bean farmers must produce the quantity that occurs at lowest fixed cost at lowest marginal cost at lowest average cost Price and cost (dollars per box) 10 6- 5- 4- 3- 2- 1 ATC 0 10 20 30 40 50 60 70 80 90 100 Quantity of beans (boxes per week)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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