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Use the provided figure to answer the following questions. Assume the farm in this example operates in a perfectly competitive market. Marginal Cost and Average
Use the provided figure to answer the following questions. Assume the farm in this example operates in a perfectly competitive market. Marginal Cost and Average Cost Functions Costs ATC MC.ATC.AVC AVC MC 18- Quantity A - If the current market price is $2 per bushel, what quantity should the farm produce? Are profits positive or negative in this case?B - It the current market price is $6: per busheL what quantityr should the farm produce?I Are prots positive or negative in this case? B - lithe current market price is $18 per bushel. what quantity should the farm produce?I Are prots positive or negative in this case? Use the provided to figure to answer the following question. Marginal Cost and Average Cost Functions Costs ATC MC,ATC,AVC AVC MC 320- 170- 120 20 Quantity A - Assume the firm operates in a competitive market and that the current market price is $320 per unit. Fixed costs are $1,000. Determine the quantity that the firm would produce in this market. What are profits for this firm
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