The Weinandt Family Farm in Wynot, NE raises livestock and grows crops. Commonly grown crops in Nebraska are corn and soybeans. Suppose you are helping a farm similar to the Weinandt Farm make decisions about how much corn to grow this year. As an agricultural product, the market for corn meets the requirements of a perfectly competitive market. A) Using the market data provided, create a market supply and demand graph. B) What are the market equilibrium price and quantity? C) Using the firm cost and quantity data, find FC, VC, ATC, AFC, AVC, and MC. Graph ATC, AFC, AVC, and MC. D) Based on your answers in part c, between which quantities is ATC minimized? E) Based on your answers in part c, between which quantities should the farm aim to produce? F) Using the lower of these two quantities, caculate TR, TR, and the firm’s economic profit or loss. G) Will the farm decide to grow corn or leave the fields bare? explain your answer H) Will farms enter this market, leave the market, or remain constant? explain your answer
The Weinandt Family Farm in Wynot, NE raises livestock and grows crops. Commonly grown crops in Nebraska are corn and soybeans. Suppose you are helping a farm similar to the Weinandt Farm make decisions about how much corn to grow this year. As an agricultural product, the market for corn meets the requirements of a
A) Using the market data provided, create a market
B) What are the
C) Using the firm cost and quantity data, find FC, VC,
D) Based on your answers in part c, between which quantities is ATC minimized?
E) Based on your answers in part c, between which quantities should the farm aim to produce?
F) Using the lower of these two quantities, caculate TR, TR, and the firm’s economic profit or loss.
G) Will the farm decide to grow corn or leave the fields bare? explain your answer
H) Will farms enter this market, leave the market, or remain constant? explain your answer
![A
D
E
F
G
H
K
L
1
g' (millions of bu) Q' (millions of bu) Price/bu
Firm q (thousands of bu)
TC
FC
VC
ATC
AFC
AVC MC
2
6000
10
10000
200
5700
9.5
0.5
10128
10505
11133
400
5400
9.
5
600
5100
8.5
1.5
6.
800
4800
8
2
12010
1000
4500
7.5
2.5
13138
8.
1200
4200
7
3
14515
9.
1400
3900
6.5
3.5
16143
10
1600
3600
6
4
18020
11
1800
3300
5.5
4.5
20148
12
2000
3000
5
5
22525
13
2200
2700
4.5
5.5
25153
14
2400
2400
4
6
28030
15
2600
2100
3.5
6.5
31158
16
2800
1800
3
7
34535
17
3000
1500
2.5
7.5
38163
18
3200
1200
2
8
42040
19
3400
900
1.5
8.5
46168
50545
55173
20
3600
600
9
21
3800
300
0.5
9.5
22
4000
10
60050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb09699a4-7072-49b1-b0e5-26da0fd5c4a6%2F1a59a9b4-e45a-4376-be4b-ff7b6029cc56%2Fois98t7_processed.png&w=3840&q=75)
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