1.There are generally two ways for the farm family to maximize profitability in their operation, either by operating at the point at which marginal revenue equals marginal costs, or alternatively, operating by maximizing the difference between Total Revenue and Total Costs.

a.Explain the practical deficiencies for this farm family in using the "marginal revenue equals marginal cost approach" to maximize profitability.

b.Given the fact that the farm family produces a commodity and they are price-takers in a perfectly competitive environment, what might be the best strategy for success (i.e. maximizing profitability) in attempting to deal with these commodity prices over which they have no control?