The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange farmer in California. Assume the market for oranges is perfectly competitive. Suppose the market price of oranges is $28.00 per crate. Characterize the farmer's profit. At a $28.00 price, the farmer will make a profit experience losses break even
The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange farmer in California. Assume the market for oranges is perfectly competitive. Suppose the market price of oranges is $28.00 per crate. Characterize the farmer's profit. At a $28.00 price, the farmer will make a profit experience losses break even
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
Related questions
Question
for the second part
The orange make a profit if the price of oranges is above $ per crate. (Enter your response as an integer.).
![The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange
farmer in California. Assume the market for oranges is perfectly competitive.
Suppose the market price of oranges is $28.00 per crate. Characterize the farmer's profit.
At a $28.00 price, the farmer will
make a profit
experience losses
break e
Price and cost (dollars per crate)
6000
56.00
52.00
48.00
44.00
40.00
30:00
32.00
28.00
24.00
20.00
16.00
12 00
8.00
400-
0:00
MC
ATC
9 10 11 12
Oranges (crates in 100s)
Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F647bc1e9-19ad-46e9-b8a2-a2a44e77b893%2F4b85b96f-25ae-45c2-a0cb-47c6e97df812%2Fxquqgdx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange
farmer in California. Assume the market for oranges is perfectly competitive.
Suppose the market price of oranges is $28.00 per crate. Characterize the farmer's profit.
At a $28.00 price, the farmer will
make a profit
experience losses
break e
Price and cost (dollars per crate)
6000
56.00
52.00
48.00
44.00
40.00
30:00
32.00
28.00
24.00
20.00
16.00
12 00
8.00
400-
0:00
MC
ATC
9 10 11 12
Oranges (crates in 100s)
Q
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