A5. Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and marginal cost of producing various quantities of oranges (crates in 1000s) arepresented in the table below.Total RevenueOutput(crates in 1000s)MarginalRevenueTotalCostMarginalCost00SO363136330030027263635002003108936360010041452363800200518153631200400621783631700500thousand crates of oranges. (Enter a numericSuppose the market for oranges is perfectly competitive. To maximize profits, farmer Jones should produceresponse using an integer.)At that level of output, farmer Jones will earn profit of $

Answer: Let us first calculate the profit to find the maximum profit. Output (Crates in 1000s)…

Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and marginal cost of producing various quantities of oranges (crates in 1000s) are presented in the table below. Total Revenue Total Marginal Output (crates in 1000s) Marginal Revenue Cost Cost 0 SO 0 1 363 363 300 300 2 726 363 500 200 3 1089 363 600 100 1452 363 800 200 1815 363 1200 400 5 6 2178 363 1700 500 thousand crates of oranges. (Enter a numeric Suppose the market for oranges is perfectly competitive. To maximize profits, farmer Jones should produce response using an integer.) At that level of output, farmer Jones will earn profit of S 13456

Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and marginal cost of producing various quantities of oranges (crates in 1000s) are presented in the table below. Total Revenue Total Marginal Output (crates in 1000s) Marginal Revenue Cost Cost 0 SO 0 1 363 363 300 300 2 726 363 500 200 3 1089 363 600 100 1452 363 800 200 1815 363 1200 400 5 6 2178 363 1700 500 thousand crates of oranges. (Enter a numeric Suppose the market for oranges is perfectly competitive. To maximize profits, farmer Jones should produce response using an integer.) At that level of output, farmer Jones will earn profit of S 13456

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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