Fioure A
Refer to Figure A. If demand for wheat is D1, then a profit maximizing firm will produce units
and earn 0 ; negative profits 5; zero profits 10; negative profits 12; positive profits Question 33
Refer to Figure A. If demand for wheat is D1, then in the long run the firm will increase its price
and output. the firm will exit the industry. new firms will enter the industry and the current frrms
will expand production. firms will increase their output so that their average fixed cost per unit
falls..
Fioure ARefer to Figure A. If demand for wheat is D1, then a profi.pdf
1. Fioure A
Refer to Figure A. If demand for wheat is D1, then a profit maximizing firm will produce units
and earn 0 ; negative profits 5; zero profits 10; negative profits 12; positive profits Question 33
Refer to Figure A. If demand for wheat is D1, then in the long run the firm will increase its price
and output. the firm will exit the industry. new firms will enter the industry and the current frrms
will expand production. firms will increase their output so that their average fixed cost per unit
falls.
