Question

Farmer mcdonald sells wheat to a broker in kansas city, missouri. because the market for wheat is generally considered to be competitive, mr. mcdonald maximizes his profit by choosing

Answer 1

The answer that fits the blank is this: THE QUANTITY AT WHICH MARKET PRICE IS EQUAL TO MR. MCDONALD'S MARGINAL COST OF PRODUCTION. Given the situation that their is competition present in the selling of wheat, the only way that Mr. McDonald can maximize his profit is by selecting the amount that would equate his production's marginal cost.