The graph shows the cost curves and the marginal revenue curve of an individual corn farmer at long-run equilibrium. Price and cost (dollars per bushel) MC 17- 16- 15- 14- 13- 12- 11- 10- 9- 8- 7- 6- 54 5- 10 200 ATC MR 100 200 300 Quantity (thousands of bushels per year) 400 The price of corn fell in 2016. Draw the farmer's new marginal revenue curve. Label it. Draw a point at the new profit-maximizing price and quantity. Draw a shape that shows the farmer's economic profit or loss. Label it.

The graph shows the cost curves and the marginal revenue curve of an individual corn farmer at long-run equilibrium. Price and cost (dollars per bushel) MC 17- 16- 15- 14- 13- 12- 11- 10- 9- 8- 7- 6- 54 5- 10 200 ATC MR 100 200 300 Quantity (thousands of bushels per year) 400 The price of corn fell in 2016. Draw the farmer's new marginal revenue curve. Label it. Draw a point at the new profit-maximizing price and quantity. Draw a shape that shows the farmer's economic profit or loss. Label it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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