Use the Following to Answer Questions

question 255

Multiple Choice

Use the following to answer questions:
Figure: Cost Curves for Corn Producers
-(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $4, in the short run the farmer will produce _____ bushels of corn and earn an economic _____ equal to _____.

• A) 0; loss; average fixed costs
• B) 0; loss; total fixed costs
• C) 3; loss; $30 per bushel
• D) 3; profit; $20 per bushel

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Definitions:

Safeguard

Measures or actions taken to protect against hazards, loss, or other unwanted outcomes.

Carwash

A facility used for cleaning the exterior, and sometimes also the interior, of motor vehicles.

Act Of God

An event caused by natural forces beyond human control, such as floods, earthquakes, or hurricanes, that cannot be prevented or predicted.

Bailed Property

Property given to someone (bailee) for safekeeping under a bailment agreement, where the physical possession but not the ownership of the property is transferred.