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An apple farmer in the Okanagan has approached you for advice on profit maximization. The farm is a price taker in the market and receives

An apple farmer in the Okanagan has approached you for advice on profit maximization. The farm is a price taker in the market and receives $200 per ton. The table below contains cost and revenue data for the farm.

Quantity (tons)

1

2

3

4

5

6

Total cost (dollars)

100

250

500

850

1300

1850

Total revenue (dollars)

200

400

600

800

1000

1200

A)Calculate the profit maximizing level of output.

B)Calculate total profit at the profit maximizing level of output.

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