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You grow potatoes and have to decide whether to sell your crop now or store it to sell later. You just harvested your crop and

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You grow potatoes and have to decide whether to sell your crop now or store it to sell later. You just harvested your crop and the cunent selling price is $30 per cwt. You have enough storage for your entire crop. Storage cost/curt. E 56$ = 0.5 + .1T2 where T = l_,...N the number of months you can store ...until the next harvest {T = 1...11}. The sales price for potatoes changes through time to offer a premium over harvest price as shown in the table. Note that premiums start declining at some point, because of the deteriorating gum of stored potatoes. Calculate the market price, storage cost, and net sales price for each month. Time Price Market Storage Net sales Premium (5) price (:5) cost ($) price (5) Harvest (Month 0) o 30 0 30 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 3 Month 9 Month 10 Month 11 AMU-hih-nwmh

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