The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a purely competitive market. The market price is $7.40 for a dozen ears of corn. Corny's Corn Cobs Quantity AVC АТС MC (Dozens of Ears) ($) ($) ($) 5.00 12.50 2.50 11 4.50 10.00 3.30 13 4.60 9.20 5.00 15 4.70 8.80 5.70 16 4.90 8.60 6.50 18 5.10 8.50 7.40 19 5.30 8.50 8.00 20 5.50 8.50 9.50 Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. Enter a loss as a negative (-) number. a. In the short run, if Corny's wants to maximize profits, how much corn should it produce? dozen ears of corn per day b. Assuming that Corny's produces in the short run, what will Corny's profit or loss be per day? 2$ per day c. In the short run, assuming nothing else changes, Corny's should O produce a ower quantity of corn per day. shut down, because the market price is above the AVC. O produce the same quantity of corn per day. O produce a greater quantity of corn per day. d. If the short-run price of corn falls to $4.30 per dozen, Corny's should O produce the same quantity of corn per day. O produce a greater quantity of corn per day. produce a lower quantity of corn per day. O shut down, because the market price is below the AVC.
The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a purely competitive market. The market price is $7.40 for a dozen ears of corn. Corny's Corn Cobs Quantity AVC АТС MC (Dozens of Ears) ($) ($) ($) 5.00 12.50 2.50 11 4.50 10.00 3.30 13 4.60 9.20 5.00 15 4.70 8.80 5.70 16 4.90 8.60 6.50 18 5.10 8.50 7.40 19 5.30 8.50 8.00 20 5.50 8.50 9.50 Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. Enter a loss as a negative (-) number. a. In the short run, if Corny's wants to maximize profits, how much corn should it produce? dozen ears of corn per day b. Assuming that Corny's produces in the short run, what will Corny's profit or loss be per day? 2$ per day c. In the short run, assuming nothing else changes, Corny's should O produce a ower quantity of corn per day. shut down, because the market price is above the AVC. O produce the same quantity of corn per day. O produce a greater quantity of corn per day. d. If the short-run price of corn falls to $4.30 per dozen, Corny's should O produce the same quantity of corn per day. O produce a greater quantity of corn per day. produce a lower quantity of corn per day. O shut down, because the market price is below the AVC.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a purely competitive market. The
market price is $7.40 for a dozen ears of corn.
Corny's Corn Cobs
Quantity
AVC
ATC
MC
(Dozens of Ears)
($)
($)
($)
8
5.00
12.50
2.50
11
4.50
10.00
3.30
13
4.60
9.20
5.00
15
4.70
8.80
5.70
16
4.90
8.60
6.50
18
5.10
8.50
7.40
19
5.30
8.50
8.00
20
5.50
8.50
9.50
Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. Enter a loss as a
negative (-) number.
a. In the short run, if Corny's wants to maximize profits, how much corn should it produce?
dozen ears of corn per day
b. Assuming that Corny's produces in the short run, what will Corny's profit or loss be per day?
per day
c. In the short run, assuming nothing else changes, Corny's should
produce a lower quantity of corn per day.
shut down, because the market price is above the AVC.
O produce the same quantity of corn per day.
O produce a greater quantity of corn per day.
d. If the short-run price of corn falls to $4.30 per dozen, Corny's should
O produce the same quantity of corn per day.
O produce a greater quantity of corn per day.
O: produce a lower quantity of corn per day.
O shut down, because the market price is below the AVVC.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education