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(- .> O https//www.insthuonusadent/Plarer To points possible-65siext outcomes tool placement ul-ht Business Economics Gloria Morris ' 1/14/13 6:13 PM Quiz: Week 2: Quiz Submit Qu This Question: 2 pts 90130(28 complete) | This Quiz: 65 pts possible ISelect all Print The figure to the right ilustrates the average total cost (ATC) and marginal cost (MC:) curves for an orange farmer in Read aloud co Catilorna. Assume the market for oranges is perfectly compettive Suppose the market price of oranges S22.00 per crate Characterize the farmer's pent At a S22 00 price, the farmer will | make 8 profit Ths orange famer wil make s pront d the price of oranges is above st1 per crate. (Ender your responce as an inlagor) Granges (ctalex i 10) Entar your answer in the answer box Type here to search ]Explanation / Answer
Consider the given fig of the orange market here the orange market is competitive, => the optimum quantity production will be determined by the condition “P=MC”.
So, if the “P=$22”, => the farmer is making a “positive profit”.
The orange farmer will make a profit if the price of orange is above “$20” per crate. Since the min(ATC)=$20. So, if the “P” is more than “min(ATC)”, => the orange farmers will make positive profit.
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