Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. Figure 8.8
-Refer to Figure 8.8. If the market price of soybeans falls to $8, then to maximize profits this farmer should produce
A) 200 bushels of soybeans.
B) 700 bushels of soybeans.
C) 1,000 bushels of soybeans.
D) a level of output that is indeterminate from this information.

Question

Refer to the information provided in Figure 8.8 below to answer the question(s) that follow.  Figure 8.8
-Refer to Figure 8.8. If the market price of soybeans falls to $8, then to maximize profits this farmer should produce
A) 200 bushels of soybeans. 
B) 700 bushels of soybeans. 
C) 1,000 bushels of soybeans. 
D) a level of output that is indeterminate from this information.

Quizplus · Accepted Answer

At a market price of $8, the farmer should produce at the level where marginal cost (MC) equals the market price to maximize profits. Without the specific figure (Figure 8.8) to reference, this answer is based on common economic principles that suggest producing where price equals marginal cost. Since the exact details of the figure are not provided, this explanation assumes that at a price of $8, the marginal cost of producing soybeans aligns with the production of 700 bushels, following the principle of profit maximization in perfectly competitive markets.

Refer to the Information Provided in Figure 8