Author Question: The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC ... (Read 118 times)

newyorker26 · **on:** Jun 29, 2018

The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC.

Assuming there are no changes in technology, in the long run the lowest possible price for corn is ________ per bushel. A) 2.50
B) 2.00
C) 3.00
D) 3.50

Question 2

In the above figure, Brendan originally consumes at point A. If his income rises and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as

A) E.
B) B.
C) C.
D) D.