A strawberry farmer has 5,000 pounds of strawberries ready to harvest. The cost of picking and transporting the strawberries to the market is $3,500. If the market pays $0.60 per pound of strawberries, what should the strawberry farmer do?
A) pick and sell the strawberries to recover the fixed costs of planting
B) not make a decision until he knows something about average costs
C) pick and sell the strawberries, since doing so increases profits by $500
D) not pick and sell the strawberries, since doing so would reduce profits by $500
Correct Answer:
Verified
Q121: Use the following to answer questions:
Figure: Industry
Q122: In a competitive equilibrium, firms earn _
Q123: At zero economic profits, a competitive firm:
A)
Q124: In a constant cost industry, P =
Q125: What condition is necessary in a constant
Q127: Figure: Profit Maximization 6 Q128: Figure: Pineapples 2 Q129: When price is less than a firm's Q130: Figure: Supply and Demand Q131: Use the following to answer questions: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
![]()
![]()
Figure: Industry