Figure 9-16

-Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market in which firms are breaking even,economically,organic produce is considered a normal good,and the average income level of consumers is rising?

Question

Figure 9-16
 
-Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market in which firms are breaking even,economically,organic produce is considered a normal good,and the average income level of consumers is rising?

Quizplus · Accepted Answer

Panel C represents the perfectly competitive organic produce market in which firms are breaking even, economically, organic produce is considered a normal good and the average income level of consumers is rising. This is because in Panel C, the price equals the minimum point of the average total cost curve, indicating that firms are earning normal profits. The demand curve is also higher than in the other panels, indicating that organic produce is considered a normal good, and the shift of the demand curve to the right suggests that the average income level of consumers is rising.

Figure 9-16 -Refer to Figure 9-16.Which Panel Best Represents the Perfectly Competitive