People who are risk averse dislike bad outcomes more than they like comparable good outcomes

Farmer McDonald sells wheat to a broker in Kansas City, Missouri. Because the market for wheat is generally considered to be competitive, Mr. McDonald maximizes his profit by choosing

a. to produce the quantity at which average variable cost is minimized. b. to produce the quantity at which average fixed cost is minimized. c. the quantity at which market price is equal to Mr. McDonald's marginal cost of production. d. the quantity at which market price exceeds Mr. McDonald's marginal cost of production by the greatest amount.

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow.  Figure 10.2 Refer to Figure 10.2. This firm?s marginal cost curve has shifted from MC1 to MC0. A likely explanation for this is that

A. the demand for the firm?s product increased. B. the price of a variable input increased. C. the supply of a variable input increased. D. the productivity of a variable input increased.