Farmer Jones grows sugar. The total revenue, marginal revenue, total cost, and m
ID: 1113048 • Letter: F
Question
Farmer Jones grows sugar. The total revenue, marginal revenue, total cost, and marginal cost of producing various quantities of sugar (bushels in 1000s) are presented in the table below Output ushels in 1000s) Total Cost Marginal Cost Total Revenue Marginal Revenue S0 594 891 1188 1485 1782 297 297 297 297 297 297 240 400 480 640 960 1360 240 160 80 160 4 400 Suppose the market for sugar is perfectly competitive. To maximize profits, farmer Jones should produce thousand bushels of sugar. (Enter a numeric response using an integer) At that level of output, farmer Jones will earn profit of $Explanation / Answer
Answer
The firm produces at MR=MC or the closet lower MC
Q=4 thousand
and
Profit=TR-TC
=1188-640
=548
The profit is $548
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.