Discussing the short run cost curves and output for a firm in perfectly competitive industry under different scenarios.
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
a) A reduction in the cost of fertilizer that is sold to corn farmers.
b) The market price of corn falls.
c) Suppose that the farmer now markets his corn as a special blend which is different than all of the other corn offered for sale in the marketplace. Explain how would this action change the farmer's price curves and/or demand and marginal revenue curves?