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. Total Revenue Marginal Total Output (bushels in 1000s) Revenue Cost 0 $0 150 300 450 600 750 900 Suppose the market for sugar is perfectly competitive. To maximize profits, farmer Jones should produce At that level of output, farmer Jones will earn profit of S 1 2 3 4 5 6 150 150 150 150 150 150 0 120 200 240 320 480 680 Marginal Cost 120 80 40 80 160 200 thousand bushels of sugar. (Enter a numeric response using an integer.)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 29RQ: Will a perfectly competitive market display allocative efficiency? Why or why not?
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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.
Total Revenue
Output
(bushels in 1000s)
Marginal
Revenue
0
1
2
3
4
5
6
$0
150
300
450
600
750
900
150
150
150
150
150
150
Suppose the market for sugar is perfectly competitive. To maximize profits, farmer Jones should produce
At that level of output, farmer Jones will earn profit of $
Total
Cost
0
120
200
240
320
480
680
Marginal
Cost
120
80
40
80
160
200
thousand bushels of sugar. (Enter a numeric response using an integer.)
Transcribed Image Text: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. Total Revenue Output (bushels in 1000s) Marginal Revenue 0 1 2 3 4 5 6 $0 150 300 450 600 750 900 150 150 150 150 150 150 Suppose the market for sugar is perfectly competitive. To maximize profits, farmer Jones should produce At that level of output, farmer Jones will earn profit of $ Total Cost 0 120 200 240 320 480 680 Marginal Cost 120 80 40 80 160 200 thousand bushels of sugar. (Enter a numeric response using an integer.)
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