Question
Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is
Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $20 per box. Farmer Brown's marginal cost of production is illustrated in the table.
Boxes of Peaches Market Price (per box) $20 Marginal Cost (MC) 20 6.00 3.00 9.00 18.00 2 20 3 20 20 5 20 36.00 20 54.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $| per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)
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Microeconomics
Authors: Michael Parkin
11th edition
133019942, 978-0133020250, 133020258, 978-0133019940
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