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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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