Asked by
gurpreet singh
on Nov 04, 2024
Verified
Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmerʹs marginal revenue to ________ and their profit-maximizing level of output to ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Profit-Maximizing Level
The output level at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.
Marginal Revenue
The additional income earned by selling one more unit of a product or service.
- Understand the consequences of market dynamics (such as the introduction or withdrawal of companies, changes in consumer demand) on corporate tactics and equilibrium in the market.
- Interpret the doctrine of maximizing financial returns and its practical application in perfectly competitive scenarios.
Verified Answer
TG
Learning Objectives
- Understand the consequences of market dynamics (such as the introduction or withdrawal of companies, changes in consumer demand) on corporate tactics and equilibrium in the market.
- Interpret the doctrine of maximizing financial returns and its practical application in perfectly competitive scenarios.