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Mink farming is a perfectly competitive industry and all mink farms have the same cost curves. When the market price is $37 a mink, farms
Mink farming is a perfectly competitive industry and all mink farms have the same cost curves. When the market price is $37 a mink, farms maximize profit by producing 1 comma 000 mink a week. At this output, average total cost is $35 a mink, and average variable cost is $13 a mink. Minimum average variable cost is $8 a mink. If the price falls to $35 a mink, will a mink farm produce 1 comma 000 mink a week? Question content area bottom Part 1 If the price falls to $35 a mink, a mink farm will _______. A. produce fewer than 1 comma 000 mink a week B. produce more than 1 comma 000 mink a week C. close down operations D. stop producing until the price returns to $37 a mink E. continue to produce 1 comma 000 mink a week If the price falls to $35 a mink, a mink farm will _______
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