Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. Suppose the market for wheat is perfectly competitive. If the market price is $7 per bushel, then to maximize profits, farmer Smith should produce thousand bushels of wheat. (Enter a numeric response using an integer.) Price and cost (dollars per bushel) ATC MC Price 10 20 30 40 50 60 70 80 90 100 Quantity y of wh wheat (bushels per month in 1000s) Q Q

Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. Suppose the market for wheat is perfectly competitive. If the market price is $7 per bushel, then to maximize profits, farmer Smith should produce thousand bushels of wheat. (Enter a numeric response using an integer.) Price and cost (dollars per bushel) ATC MC Price 10 20 30 40 50 60 70 80 90 100 Quantity y of wh wheat (bushels per month in 1000s) Q Q

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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