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A small farmer, who produces only lemons, is selling 20 cartons at the industry price of $4.90 per carton. The farmer's average variable cost of

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A small farmer, who produces only lemons, is selling 20 cartons at the industry price of $4.90 per carton. The farmer's average variable cost of producing 20 cartons is $4.00; this is also the farmer's minimum average variable cost. Is the farmer recovering her variable costs of production? Explain your answer. Edit View Insert Format Tools Table 12pt Paragraph BIUA V TV . . .Question 2 9 pts Suppose lemons and limes are good substitutes for consumers. Assume the market price of limes decreases. Explain the impact of this change on the lemon farmer's short run profits. Edit View Insert Format Tools Table 12pt v Paragraph v B / U A~+v v T%v Question 3 9 pts At what price point would you recommend this lemon farmer leave the market? Explain your answer. Edit View Insert Format Tools Table 12pt Paragraph BI U A v B V T2 v

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