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

question 61

Multiple Choice

A perfectly competitive wheat farmer in a constant-cost industry produces 3,000 bushels of wheat at a total cost of $36,000.The prevailing market price is $15.What will happen to the market price of wheat in the long run?

• A)The price remains constant at $15.
• B)The price falls to $12.
• C)The price rises above $15.
• D)There is insufficient information to answer the question.

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Definitions:

Source A

An initial or primary provider of information, materials, or resources, often referenced in research or procurement.

Capacity

is the maximum output that a system can produce over a given period under normal conditions.

Demand

The desire and willingness of consumers to purchase goods or services at a given price.

Cells Filled

Refers to compartments or areas within a structure that are occupied or filled with a specific substance or material.