How many bushels will the farmer produce to maximize profit

Assignment Help Econometrics

Reference no: EM13200950

Since price-takers cannot charge their own price, they can select a quantity which suits them best. Presumably, they would select the profit-maximizing quantity.

Suppose the typical wheat farmer's cost function is TC = 100,000 + 2Q + 0.005Q2 , Q corresponds to thusands of bushels. The market price of wheat is $8 per bushel.
How many bushels will the farmer produce in to maximize profits?

Hint: There are two ways to go about this:
(a) Determine Q by MR = MC
(b)Maximize Profit = TR - TC = (8Q) - (100,000 + 2Q + 0.005Q2 )

Reference no: EM13200950

Questions Cloud

Describe the physical behavior of the solutions of elliptic : Briefly describe the physical behavior of the solutions of elliptic, porabolic and hyperbolic equarions.

Change in total short run profits in the snuffbox industry : Suppose the demand for total snuffbox production is given by Q = 1,100 – 50P. What will be the equilibrium in this marketplace.What will each firm’s total short – run profits be.

How high is the top of the ski lift relative to the base : the gondola ski lift at keystone colorado is 2830 m long. on an average, the ski lift rises 14.6 degrees above the horizontal.

How many coins of each kind does she have : Rita has a collection of 114 coins consisting of nickels, dimes, and quarters. The number of dimes is 4 more than one-third the number of nickels, and the number of quarters is twice the number of dimes. How many coins of each kind does she have?

How many bushels will the farmer produce to maximize profit : Since price-takers cannot charge their own price, they can select a quantity which suits them best. Presumably, they would select the profit-maximizing quantity. Suppose the typical wheat farmer's cost function is TC = 100,000 + 2Q + 0.005Q2 , Q co..

Find how far does each drive each day : while commuting to work in orlando,florida.marcia drives one-half the distance that melissa drives each day john drives 17 miles more than melissa each day.in one day.these three people drive 112 miles communiting to work.

Find the financial statements : Find the financial statements for the two most recent years for a publically traded company in the movie rental industry and discuss the nature and strength of each of the Five Forces in the current environment. Conclude whether the force is favora..

How might competition change the happy situation : Suppose there are 1,000 small farms in this industry. What will be the output per farm How much revenue will each farm earn If in fact the revenues are sufficiently high to yield handsome profits, how might competition change the happy situation

Evaluate of the average cost of gasoline each year : The line represents an estimate of the average cost of gasoline each year. The line estimates the price of gasoline in January of each year

User Account

All Pages