Answer:
Jones will increase output .
Step-by-step explanation:
The market price of Farmer Jones' per bushel wheat = $6.00
Her average total costs and her marginal costs both are equal $8.00 per bushel.
Since the price of bushel is greater than average variable cost, so Jones will continue the producing.
Profit maximization requires equality of price with marginal cost. As market price is less than marginal cost,
Jones will increase output until price equals the marginal cost to maximize her profit.
