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.

---

Definitions:

Legal-Rational Authority

A type of leadership or rule based on established laws, procedures, and rules, characterized by a clear division of responsibilities and an emphasis on technical competence.

Traditional Authority

A form of leadership in which power is legitimized by customs and historical precedents, often associated with monarchies or tribal systems.

American Public Policy

The set of laws, regulations, actions, and decisions by government and its institutions that reflect the attitudes and rules for the United States' public affairs.

Voting Patterns

The trends or tendencies in how different groups of people vote during elections or referendums.