ID: A Name: Figure 59-2: Cost Curve and Profits Price, cost of bushel $30 26 22 18 14 - AVC 10 - 3 5 6 Quantity of corn (bushels) 9. (Figure 59-2: Cost Curves and Profits) The market for corn is perfectly competitive, and an individual com farmer faces the cost curves shown in the figure. If the price of a bushel of corn in the market is $14, then the farmer will produce of corn and earn an economic equal to a. 4 bushels; profit; SO b. 4 bushels; profit; just less than $80 per bushel c. 2 bushels; profit; $0 d. 2 bushels; loss; just more than $80 per bushel e 4 bushels; loss; just less than $20 per bushel 10. (Figure 59-2: Cost Curves and Profits) The market for corn is perfectly competitive, and an individual corn farmer faces the cost curves shown in the figure. If the price of a bushel of corn in the market is $4, then the farmer will produce of corn and earn an economic equal to 0 bushels; loss; average fixed costs b. 0 bushels; loss; average total costs c. 3 bushels; loss; $30 per bushel d. 3 bushels; profit; $20 per bushel e. 0 bushels; loss; total fixed costs 11. In a perfectly competitive market, tastes and preferences lead to an increase in the demand for the good. Holding everything else constant, this will lead to an increase in price that will result in: greater than normal profits for firms, which will attract new firms, which in turn will result in a reduction in the price. b. lower than normal profits for firms, which will attract new firms. which in turn will result in a reduction in the price. c. greater than normal profits for firms, which will lead some firms to leave the industry and thus result in an even greater price increase. d. lower than normal profits, which will lead some firms to leave the industry and thus result in an even greater price increase. e. greater than normal profits for firms, which will lead some firms to enter the industry and thus result in an even greater price increase