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you are an economic consultant for Farmer Perk,

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Question

You are an economic consultant for Farmer Perk, who produces raw cotton. One day he gives you the following cost data. The market price for a pound of cotton is $7. Use the table to answer the following questions.;Output;(pounds of cotton per day) Fixed cost;(FC) Variable cost;(VC);0 $12 $0;1 $12 $5;2 $12 $9;3 $12 $14;4 $12 $20;5 $12 $28;6 $12 $38;7.3. At the current market price, Farmer Perk will;A. Produce in the short run and shut down in the long run.;B. Shut down in the short run and shut down in the long run.;C. Produce in the short run and produce in the long run.;D. Shut down in the short run and produce in the long run.

 

Paper#21293 | Written in 18-Jul-2015

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