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.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 1PA
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Question
![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-
5-
4-
10
0
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0719c8e2-0ad2-4c3a-94cc-1b65bfb5128b%2Fc03a5ce8-8bd4-4a96-9270-24bbb7d9d474%2Fdbjjtjy_processed.png&w=3840&q=75)
Transcribed Image Text: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-
5-
4-
10
0
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.
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