A grower faces a price of $0.13/pound for his/her pumpkins. The buyers of the pumpkins will buy as many pumpkins as offered by the grower at this price. The pumpkin farmer evaluates his/her costs and finds that his/her production costs (average total costs) are $0.16 per pound. He/she also evaluates the marginal cost of production and finds that the marginal cost of production at the current level of production is $0.14 per pound. The average variable cost of production at the current level is $0.12 per pound. In the short run, the producer should try to:
a. Increase amount produced to get maximum profit
b. Decrease the amount produced to get maximum profit
c. Leave unchanged the amount produced to get maximum profit
d. Stop producing and let the pumpkins rot
b. Decrease the amount produced to get maximum profit
Economics
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If perfectly competitive firms are maximizing their profit and are making an economic profit, the market ________ in a short-run equilibrium and ________ in a long-run equilibrium
A) is; is B) is; is not C) is not; is D) is not; is not E) is; might be
Economics
Explain what is meant by marginal product
What will be an ideal response?
Economics