The farmer bring to market to maximize profits

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An apple farmer must decide how many apples to harvest for the U.S. market. He knows that there is a one-half probability that the world price will be $6, a one-quarter probabaility that it will be $8, and a one-quarter probability that it will be $10 per bushel. His cost function is C (Q) = 0..1 Q^2. How many bushels of apples should the farmer bring to market to maximize profits?

Reference no: EM131242426

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The farmer bring to market to maximize profits : An apple farmer must decide how many apples to harvest for the U.S. market. He knows that there is a one-half probability that the world price will be $6, a one-quarter probabaility that it will be $8, and a one-quarter probability that it will be $1..

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