-The Figure Above Shows a Typical Perfectly Competitive Corn Farm

question 213

Multiple Choice

-The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC. The market is initially in a long-run equilibrium, where the price is $3.00 per bushel. Then, the market demand for corn decreases and, in the short run, the price falls to $2.50 per bushel. In the new short-run equilibrium, the farm

• A) incurs an economic loss of between $1 and $40,000.
• B) receives zero economic profit.
• C) incurs an economic loss of between $40,001 and $130,000.
• D) incurs an economic loss of more than $130,001.

Describe the goals of fiscal policy and the concept of national debt.

Discern the implications of foreign ownership of national debt.

Understand the repercussions of attempting to rapidly pay off the national debt and the effects of fiscal policy measures during recessionary periods.

Understand the factors influencing creativity and motivation.

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Definitions:

Liable

Legally responsible.

Damages

Money recovered by a party in a court action to compensate that party for injury or loss.

Ancestors

Immediate family members from previous generations, such as parents, grandparents, and great-grandparents.

Native American Nez Perce

An Indigenous tribe originally located in the Pacific Northwest of the United States, known for their leadership under Chief Joseph.