A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of $50,000. The prevailing market price is $48. What will happen to the market price of wheat in the long run?
A) The price remains constant at $48.
B) The price falls below $48.
C) The price rises above $48.
D) There is insufficient information to answer the question.
Answer: C
Economics
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When the president says that "High inflation rates are a much more serious economic problem than high unemployment rates," it is an example of
A) a normative statement. B) an empirically proven fact. C) a positive statement. D) an irrational argument.
Economics
Two reasons savers keep deposits at banks are to:
A. secure mortgages and to purchase stocks. B. lower interest rates and to increase the money supply. C. equalize loan supply and demand and to earn interest. D. earn a return on their savings and to facilitate making payments.
Economics