Farmer Fanny sells her crops in a competitive price-taker market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
A) revenue will increase by $10 if she harvests the 501st bushel
B) revenue will fall by $5 if she harvests the 501st bushel
C) average fixed cost will rise if she harvests the 501st bushel
D) profit will fall by $10 if she harvests the 501st bushel
E) profit will remain unchanged if she harvests the 501st bushel

Question

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The Answer of Farmer Fanny sells her crops in a competitive price-taker market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
A) revenue will increase by $10 if she harvests the 501st bushel
B) revenue will fall by $5 if she harvests the 501st bushel
C) average fixed cost will rise if she harvests the 501st bushel
D) profit will fall by $10 if she harvests the 501st bushel
E) profit will remain unchanged if she harvests the 501st bushel

Farmer Fanny Sells Her Crops in a Competitive Price-Taker Market