Assume soybeans are produced in a perfectly competitive market. A soybean farmer is currently maximizing his profits. If the market price of soybeans falls, after the farmer adjusts to the new price, he will be producing ________ bushels of soybeans, and his profit will be ________.

A) fewer; the same
B) fewer; lower
C) more; the same
D) the same number of; the same

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Bushels

A measure of volume commonly used in agriculture, especially in the United States, for quantifying crops like grains, fruits, and vegetables.