Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and

Question

Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and marginal cost of producing various quantities of oranges (crates in 1000s) are presented in the table below Total Cost 0 60 100 120 160 240 340 Output (crates in 1000s) Total Revenue Marginal Revenue Marginal Cost $0 70 140 210 280 350 420 70 70 70 70 70 70 60 40 20 40 80 100 2 3 4 Suppose the market for oranges is perfectly competitive. To maximize profits farmer Jones should producethousand crates of oranges. (Enter a numeric response using an integer.) At that level of output, farmer Jones will eam profit of $L

Explanation / Answer

Answer
The perfectly competitive firm maximizes profit at MC=P
it means the firm will produce Q=4 thousand crates of oranges
profit=TR-TC
=280-160
=$20
the profit is $20

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