nework: L8. Perfect Competition :0 of 1 pt 10 of 40 (31 complete) N Score: 59.92

Question

nework: L8. Perfect Competition :0 of 1 pt 10 of 40 (31 complete) N Score: 59.92%, 23. cept: Profit Maximization Graph Question Help mer Smith grows wheat. The average total cost and ginal cost of growing wheat for an individual farmer e illustrated in the graph to the right MC ATC uppose the market for wheat is perfectly competitive. If he market price is $7 per bushel, then to maximize profits armer Smith should produce 5 thousand bushels of wheat. (Enter a numeric response using an integer.) Price 50 60 70 80 90 T00 Quantty of wheat (bushels per monen r, 1000s) Enter your answer n the answer Check Answ parts showin Final Chack MacBook Ait esc F1 F2 F3 GOO F5

Explanation / Answer

65 thousands bushels

Equilibrium output is where P = MC and MC is increasing.

So, Smith should produce 65 thousands bushels to attain maximum profit.

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