Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A farmer used to sell a carton of eggs for $2.50 each. At this price, the farmer used to sell an average of 3,500 cartons

image text in transcribed

A farmer used to sell a carton of eggs for $2.50 each. At this price, the farmer used to sell an average of 3,500 cartons of eggs per month. When the farmer raised the price to $3.10, sales dropped to an average of 2,900 cartons of eggs per month. The farmer's fixed costs are $1,041.60 per month and the variable costs are $1.42 per carton of eggs. Answer the following questions: (A) Assume that the relationship between the price of a carton of eggs p and the demand for cartons of eggs x is linear. Express p as a function of x p = (B) Find the farmer's monthly revenue function in terms of x R(x) = (C) Assume that the farmer's monthly cost function is linear. Express the farmer's monhtly cost function in terms of x. C(x) = (D) Find the farmer's monthly profit function in terms of x. P(x) = (E) What is the average number of cartons of eggs that would maximize the farmers's monthly profit? The optimal average number of cartons of eggs is x = (E) Suppose that during winter time x cannot be larger than 3000 cartons of eggs per month. What is the average number of cartons of eggs that would maximize the farmers's monthly profit during the winter? The optimal average number of cartons of eggs during the winter is x =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Robonomics Prepare Today For The Jobless Economy Of Tomorrow

Authors: John Crews

1st Edition

1530910463, 978-1530910465

More Books

Students also viewed these Finance questions