Farmer Fanny sells her crops in a perfectly competitive 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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In the above figure, if we begin at S1 and the Fed sells bonds
A) the price of bonds rises, and so does the interest rate. B) the price of bonds falls, and the interest rate rises. C) the price of bonds rises, and the interest rate falls. D) the price of bonds falls, and so does the interest rate.
Refer to Table 1-3. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?
A) $10 B) $20 C) $25 D) $91.67