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Figure: Cost Curves for Corn Producers
-(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $4, in the short run the farmer will produce _____ bushels of corn and earn an economic _____ equal to _____.

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Use the following to answer questions:
Figure: Cost Curves for Corn Producers 
-(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $4, in the short run the farmer will produce _____ bushels of corn and earn an economic _____ equal to _____.

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In a perfectly competitive market, if the price is below the average variable cost, the farmer will produce 0 bushels and incur a loss equal to total fixed costs.

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