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there is a 50% probability that the world price will be $10/bushel, a 40% probability that it will be $15/ bushel, and a 10% probability
there is a 50% probability that the world price will be $10/bushel, a 40% probability that it will be $15/ bushel, and a 10% probability that it will be $20/bushel. His cost function is C(Q) = .02Q2. a. What is the expected price in the world apple market?Johnny reckons that, since P = $10 is the most likely outcome, it is in his best interest to choose the quantity of output under that assumption (P=$10). According to his logic, which output quantity should be chosen
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