A farmer producing bushels of soybeans in the perfectly competitive soybean industry is currently maximizing profits. If the market price of soybeans increases and the farmer adjusts output to the new price, he will produce ________ soybeans and make ________ profit.
A) fewer; the same
B) fewer; less
C) more; more
D) the same bushels of; the same

Question

Quizplus · Accepted Answer

In a perfectly competitive market, if the market price of a product increases, a profit-maximizing producer will increase production to take advantage of the higher price, leading to more profit.

A Farmer Producing Bushels of Soybeans in the Perfectly Competitive