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Use the Following to Answer Question

Question 49

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Use the following to answer question: Use the following to answer question:   -(Table: Lilly's Apple Orchard)  Look at the table Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard; the orchard's variable costs are given in the table. Her orchard has fixed costs of $30. If the price of a bushel of apples is $85, we would expect total industry output to _____ and Lilly's output to _____ in the long run. A)  rise; rise B)  fall; fall C)  fall; rise D)  rise; fall
-(Table: Lilly's Apple Orchard) Look at the table Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard; the orchard's variable costs are given in the table. Her orchard has fixed costs of $30. If the price of a bushel of apples is $85, we would expect total industry output to _____ and Lilly's output to _____ in the long run.


A) rise; rise
B) fall; fall
C) fall; rise
D) rise; fall

Correct Answer:

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