Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound. Is the farmer maximizing profit? If not, should the farmer produce more or less sugar?© BrainMass Inc. brainmass.com October 10, 2019, 4:58 am ad1c9bdddf
The sugar market is clearly perfectly competitive.
We know that the profix maximizing rule for perfect competitors is price = marginal ...