Consider the perfectly competitive market for com The market equilibrium price is $20. Suppose the farmer maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40 What is the marginal cost of production at 1000 bushels? a $40,000 b. $40 c Less than $20 x d. $20

Consider the perfectly competitive market for com The market equilibrium price is $20. Suppose the farmer maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40 What is the marginal cost of production at 1000 bushels? a $40,000 b. $40 c Less than $20 x d. $20

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter22: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 10CQ

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Question

Consider the perfectly competitive market for corn The market equilibrium price is $20. Suppose the farmer
maximizes profits by producing 1000 bushels. The firm's average cost at 1000 bushels is $40. What is the
marginal cost of production at 1000 bushels?
a $40,000
b.
с
d.
$40
Less than $20 x
$20
I

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