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-The Figure Above Shows the Costs for the Typical Grower

Question 325

Multiple Choice

  -The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently. The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips A)  increases so it is above $1,200. B)  is $1,200 and turnip growers will make normal profit. C)  decreases so it is below $1,200, and turnip growers will make normal profit. D)  decreases so it is below $1,200 and the turnip growers make an economic profit.
-The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently. The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips


A) increases so it is above $1,200.
B) is $1,200 and turnip growers will make normal profit.
C) decreases so it is below $1,200, and turnip growers will make normal profit.
D) decreases so it is below $1,200 and the turnip growers make an economic profit.

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