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:

Strategic Business Unit Level

A semi-autonomous division or unit of a company that has its own strategy and direction while contributing to the overall success of the corporation.

Nonprofit Organization

An entity that operates for purposes other than making a profit, often focused on social, charitable, or community goals.

Charitable Service Agency

Nonprofit organizations that provide assistance, services, or funds to those in need or pursue philanthropic missions.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.