A Perfectly Competitive Wheat Farmer in a Constant-Cost Industry Produces

question 191

Multiple Choice

A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of $50,000.The prevailing market price is $48.What will happen to the market price of wheat in the long run?

• A)The price remains constant at $48.
• B)The price falls below $48.
• C)The price rises above $48.
• D)There is insufficient information to answer the question.

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Definitions:

Yelling Behavior

Vocal expressions performed at a high volume, often indicative of anger, distress, or attempting to command attention.

Partial Reinforcement Effect

The greater resistance to extinction of an instrumental or operant response following intermittent rather than continuous reinforcement during acquisition.

Frustration Theory

A psychological concept suggesting that frustration, or the blocking of goal achievement, leads to aggression or other antisocial behaviors.

Contingency Management

A type of behavioral therapy based on the principle of reinforcing desired behaviors with rewards while not reinforcing or punishing undesirable behaviors.