Peach growing is perfectly competitive. For simplicity, suppose that all peach growers have the same cost curves. In the adjacent gure, each grower's initial average total cost curve is ATC, its initial marginal cost curve is MC, and its long-run average cost curve is LAC. Suppose the price is $40 per bushel and the rm stays open. In the short run, the rm's protmaximizing price is $D and the protmaximizing quantity is D bushels. The rm is making an economic |:l. I055 prot A peach grower's cost curves $50 $40 $30 '69 M 01 $20 $10 Price and cost ($lbushel of peaches) $0 0 2,000 4,000 6,000 8,000 10,000 Quantity (thousands of bushels of peaches per year)