Multiple Choice
The rutabaga market is perfectly competitive and the price of a ton of rutabagas rises.As a result,Rudy,a rutabaga farmer,will
A) decrease his output of rutabagas.
B) not change his output of rutabagas because Rudy's firm is a price taker.
C) increase his output of rutabagas.
D) at first decrease and then increase his output of rutabagas.
E) probably change his output of rutabagas, but more information is needed about the change in the marginal revenue of a ton of rutabagas.
Correct Answer:
Verified
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