A farmer is producing where MC = MR. Say that half of the cost of producing wheat

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A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land

(a fixed cost) and half is the cost of labor and machines

(a variable cost). If the average total cost of producing wheat is $8 and the price of wheat is $6, what would you advise the farmer to do? (“Grow something else” is not allowed.)

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 14, 2024 04:01 AM

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A farmer is producing where MC = MR. Say that half of the cost of producing wheat

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Given that the farmer is producing where marginal cost MC equals marginal revenue MR we can determin...View the full answer

Microeconomics

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