16. A farmer is producing where MC MR . Say that half of the cost of...

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16. A farmer is producing where MC  MR . Say that half of the cost of producing wheat is the rental cost of land

(a fixed cost) and half is the cost of labor and machines

(a variable cost). If the average total cost of producing wheat is $8 and the price of wheat is $6, what would you advise the farmer to do? (“Grow something else” is not allowed.) (LO13-3)

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Microeconomics

ISBN: 9780077501808

9th Edition

Authors: David Colander

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