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Figure: Cost Curves for Corn Producers
-(Figure: Cost Curves for Corn Producers)Use Figure: Cost Curves for Corn Producers.The market for corn is perfectly competitive.If the price of a kilogram of corn is $14,in the short run,the farmer will produce _____ of corn and earn an economic _____ equal to _____.

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Use the following to answer questions :
Figure: Cost Curves for Corn Producers 
-(Figure: Cost Curves for Corn Producers)Use Figure: Cost Curves for Corn Producers.The market for corn is perfectly competitive.If the price of a kilogram of corn is $14,in the short run,the farmer will produce _____ of corn and earn an economic _____ equal to _____.

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce where price equals marginal cost (MC). If the price is $14, the farmer will produce 4 kilograms where MC equals $14. At this output level, the farmer earns normal profit, meaning economic profit is $0.

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