A rice farmer sells rice to an Australian grain broker.Suppose that the market for rice is competitive.This means that the farmer will maximise profit by choosing:
A) to produce the quantity at which average fixed cost is minimised
B) to sell its wheat at a price where marginal cost is equal to average total cost
C) the quantity at which market price is equal to the farm's marginal cost of production
D) the quantity where average revenue is equal to the farm's average variable cost
Correct Answer:
Verified
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