A Wisconsin farmer sells her crops in a competitive price-taker market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
a. revenue will increase by $10 if she harvests the 501st bushel
b. revenue will fall by $5 if she harvests the 501st bushel
c. average fixed cost will rise if she harvests the 501st bushel
d. profit will fall by $10 if she harvests the 501st bushel
e. profit will remain unchanged if she harvests the 501st bushel
E
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An increase in disposable income leads to a
A) rightward shift of the supply of loanable funds curve. B) rightward shift of the demand for loanable funds curve. C) downward movement along the supply of loanable funds curve. D) leftward shift of the supply of loanable funds curve. E) leftward shift of the demand for loanable funds curve.
In the figure above, with no government involvement and if the colleges are competitive, what is the deadweight loss?
A) $12 billion per year B) $6 billion per year C) $4 billion per year D) zero